Secondary

Freddie Mac's net income increased to $4.8 billion in the fourth quarter, more than double what it earned a quarter earlier, the government-sponsored enterprise announced Thursday.

The Basel III capital requirements are making it hard for banks to stay in the servicing business, said David Motley, president of Colonial Savings. Their exodus from the market indirectly hurts consumers, he argued.

Senate Banking Committee Chairman Mike Crapo said Wednesday that although he plans to begin working on housing finance reform and changes to the Dodd-Frank Act, the poor relationship between Democrats and Republicans will slow any progress.

Fannie Mae is making technological updates and implementing policy and operational changes as part of an effort to improve servicing.

The government-sponsored enterprises should target their affordable housing efforts to strengthening the single-family market, rather than investing in private equity giants.

American International Group posted its fourth loss in six quarters, burned again by higher-than-expected claims costs as Chief Executive Officer Peter Hancock struggles to sustain profitability.

In the aftermath of enforcement actions, non-executive chair Phyllis Caldwell is directing the special servicer's efforts to diversify its leadership and business model.

The sale will include Fannie Mae's sixth "community impact" pool of loans.

While Arch Capital had a slight increase in year-over-year net income to $64 million, the total was affected by $25 million of costs related to the purchase of United Guaranty.

JPMorgan Chase is known to eschew selling conforming mortgage loans to Fannie Mae and Freddie Mac, preferring to securitize them in the private-label market.