Fannie Mae chief Franklin Raines fought back against critics of his company on Friday, saying the mortgage giant does not pose a dangerous threat to the nation's financial system.In a speech at the American Enterprise Institute, Mr. Raines said U.S. consumers would be worse off without the mortgage giant in the secondary market. He also denied that Fannie Mae had engaged in "mission creep" by entering new lines of business. "Fannie Mae principally manages just one asset -- residential mortgages," he said. Over the past two years AEI, a conservative think tank, has held several seminars on the GSEs, lately focusing on ideas about privatizing the congressionally chartered companies. Fannie Mae has roughly $1 trillion in debt. Mr. Raines said that two other federally chartered institutions -- Citigroup and J.P. Morgan Chase/Bank One -- have more liabilities than his company. He said the two megabanks -- "unlike Fannie Mae" -- have "an explicit government guarantee backing up a significant portion of their liabilities." (The liabilities Mr. Raines referred to are federally insured deposits.) Mr. Raines' speech and a question-and-answer session were in progress at MortgageWire's Friday deadline.
-
The massive mortgage business saw a first quarter profit mitigated by nearly $300 million in hedging losses.
April 24 -
The Consumer Financial Protection Bureau has seen excessive property-inspection charges, fees that loan mods should eliminate and improper line-item labels.
April 24 -
Michael Tannenbaum, whose experience in the financial services industry spans over 15 years, has a track record of helping companies scale and grow.
April 24 -
A majority of consumers earning more than $100,000 annually said they were concerned about their own ability to purchase a home, demonstrating how affordability issues are impacting those at many socioeconomic levels, the University of Michigan study found.
April 24 -
The nonbank's results add to other indications that the first quarter's "higher for longer" rate scenario had an upside for efficient servicing operations.
April 24 -
The latest rate increases contributed to a 1% drop in purchases from the previous week and 15% annually, according to the Mortgage Bankers Association.
April 24