Secondary

Offering counseling to prospective homebuyers as part of Fannie Mae and Freddie Mac's duty to serve requirements could play a crucial role in helping lenders and nonprofits safely increase access to credit for underserved markets.

Even while FHFA finally embarked on a principal reduction plan, critics argued it was a dangerous idea that made Fannie Mae and Freddie Mac less safe while helping relatively few people.

The U.S. government's 2012 decision to take all the profits from Fannie Mae and Freddie Mac will get a federal appellate review Friday when investors argue the appropriation was illegal.

Purchase mortgage activity, which normally picks up in March and April, is getting an extra boost from an improving economy, the Mortgage Bankers Association reported.

PNC Financial Services said its residential mortgage business lost $13 million in the first quarter due to its servicing portfolio hedging activities and lower loan sales income.

Kroll Bond Rating Agency added its voice to the chorus of credit rating agencies downplaying the risks of mortgages that fail to comply with new consumer disclosure rules.

FHFA Director Mel Watt acknowledged that the principal reduction program may seem "too small and too late."

Total mortgage income at B of A was $433 million, down from $694 million a year ago as the strategy of putting loans on its balance sheet meaning the bank gets less gain-on-sale revenue.

Mutual of Omaha Bank and an affiliate of PlainsCapital Bank in Dallas have partnered to sell residential mortgages.

Fannie Mae and Freddie Mac surged to four-month highs on speculation lawsuits involving the mortgage giants have progressed in a way that favors shareholders.