Freddie Mac is charging higher guarantee and delivery fees in order to raise capital and increase earnings, the company's chairman and chief executive Richard Syron has told an investor conference."The way you want to get capital over the long run is by generating earnings," Mr. Syron said. "And we just plain were not generating enough earnings on the basis of the prices we were charging and the current risk environment." Freddie's fourth-quarter earnings are "not expected to be better than they were in the third quarter," he said, when the giant mortgage company reported a $2 billion loss. Freddie expects a 10% house price decline on properties financed with prime conforming mortgages, and it projects that the mortgages it guarantees will experience a 3.0%-3.5% default rate and a 30% severity rate. The average g-fee Freddie charged in the third quarter was in the mid-20s, up significantly from those of last year, Mr. Syron said. This business is "going to be very attractive" in the coming years, he added. The government-sponsored enterprise can be found on the Web at http://www.freddiemac.com.
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A federal judge in Texas dismissed the Consumer Financial Protection Bureau's medical debt rule and prohibited states from passing their own laws prohibiting medical debt on credit reports.
8h ago -
Dr. Mark Calabria takes on the additional role of chief statistician of the United States; retired Ally Bank executive Diane Morais has joined First Citizens Bancshares' board of directors; MainStreet Bank has promoted Alex Vari to chief financial officer; and more in this week's banking news roundup.
10h ago -
While refinances are behind the latest increases, the pace of purchase activity may be a stronger indicator of where the housing market sits.
July 11 -
The share of economists expecting a September rate reduction grew in the July Wolters Kluwer survey, but the October or later percentage also increased.
July 11 -
Rising home prices and softening sales offer a mixed view of a market that some say is shifting to favor buyers.
July 11 -
The notes are backed by home improvement installment loans originated by approved dealers in Foundation Finance Company's network.
July 11