The Treasury Department has served notice that its automatic approvals of Fannie Mae's and Freddie Mac's debt issuance is now under review in light of the accounting scandals at the two GSEs and continued weaknesses in their accounting systems, risk management practices, and internal controls."[T]he time is right for Treasury to review its debt approval process to ensure that we continue to act as appropriate custodians of the power that Congress gave us when the charters of Fannie Mae and Freddie Mac were created," Treasury Under Secretary Randal Quarles told a Women in Housing and Finance meeting in Washington. The government-sponsored enterprises issue corporate debt mainly to finance their giant mortgage portfolios, which combined have $1.45 trillion in assets. Limiting GSE debt issuance could effectively reduce or cap the growth of their portfolios. "Since we have not seen any specific proposal to change that process, it would be speculative to comment," a Freddie Mac spokeswoman said. Fannie Mae declined to comment. Mr. Quarles reaffirmed the Bush administration's support for GSE regulatory reform legislation that would require Fannie and Freddie to shrink their portfolios. He pointed out that Fannie has reduced the size of its portfolio by nearly $200 billion with no discernible impact on the housing market.
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The massive mortgage business saw a first quarter profit mitigated by nearly $300 million in hedging losses.
11h ago -
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