A few hours after Fannie Mae announced a $1 billion-plus mistake in its third-quarter earnings statement, equity analysts appeared to be in a forgiving mood -- for the most part.A research report by Smith Barney analyst Matt Vetto opined that "it is unlikely there are more errors to be discovered," adding, "We think the damage here is primarily to reputation, but not likely more that that." Sandler O'Neill analyst Mike McMahon told investors the Fannie Mae error was an "embarrassment, especially since the company just put on a tutorial on the company's accounting, which covered in part the company's controls." On Wednesday afternoon Fannie Mae announced that due to a "computational error" it had to make three $1 billion-plus upward adjustments to third-quarter earnings: $1.28 billion in unrealized gains on securities; $1.14 billion in "accumulated other comprehensive income"; and $1.14 billion in shareholder equity. Analysts issued forgiving statements a few hours later. Then, on Thursday morning Fannie blamed its news release distributor for improperly issuing a statement (on Wednesday) about its earnings without first checking with the company. In about two hours on Wednesday, Fannie's stock had fallen almost 6% before the company could issue clarifying comments. Its stock then recovered and was trading up slightly on Thursday at MortgageWire's midday deadline.
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The lender recorded a $59 million net loss in the fourth quarter, an 83% improvement from its third quarter performance.
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Initial analyses of Home Mortgage Disclosure Act data show UWM ahead in 2023 loan numbers and dollar volume, but Rocket's market share still looks competitive.
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Last year, the Raleigh, N.C.-based Integrated called off a deal to sell itself to MVB Financial after bank stocks took a hit in the aftermath of the regional bank failures. Capital hopes to expand its government-guaranteed lending with the transaction.
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The pending end of the program comes as over half of U.S. states have already ceased accepting new applicants for federal aid aimed to help struggling households with mortgage payments.
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But the 30-year fixed rate mortgage is still near 7%, and that remains the overhang on the housing market, Freddie Mac said.
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Mortgage payments rose 10% year-over-year to an all-time high for March, Redfin said.
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