June 15, 2005 |
Beleaguered mortgage finance giant Freddie Mac said Tuesday that it was probable that the company would have to pay out large legal claims stemming from the shareholder lawsuits and various law enforcement actions probing its multibillion-dollar earnings restatement. "Freddie Mac believes that a loss in connection with the proceedings arising from the restatement is probable," the company said in its much-delayed 2004 annual earnings statement.
May 27, 2005 |
U.S. Treasury Secretary John W. Snow said Thursday that a bill passed by a House panel to stiffen oversight of mortgage giants Fannie Mae and Freddie Mac must be beefed up to bring it in line with White House policy.
May 26, 2005 |
A congressional panel approved legislation that would create a stricter regulator for Fannie Mae and Freddie Mac in response to $13 billion in accounting errors at the mortgage finance companies since 2003. The House Financial Services Committee voted 65 to 5 to create a federal overseer with authority to order the companies to cut their combined $1.5-trillion mortgage portfolios, deny new lines of business, alter capital standards and sell the assets of a company in the event of default.
May 20, 2005 |
Federal Reserve Chairman Alan Greenspan again pushed for limits on the multibillion-dollar mortgage holdings of Fannie Mae and Freddie Mac, saying such restrictions would not hurt the thriving housing market. Greenspan, who has been pressing Congress to limit the holdings of the two mortgage giants, warned Thursday that their debt poses a risk to U.S. financial markets.
April 21, 2005 |
The chief executives of Fannie Mae and Freddie Mac told a congressional panel that the U.S. housing market would attract less foreign investment if Congress forced the mortgage finance companies to reduce their $1.5-trillion loan portfolios. Foreign investors have bought one-third of the benchmark securities issued by Washington-based Fannie Mae over the last six years, Fannie Mae interim Chief Executive Daniel Mudd said in testimony before the Senate Banking Committee.
April 6, 2005 |
Armando Falcon, director of the federal agency that regulates mortgage finance giants Fannie Mae and Freddie Mac, resigned Tuesday, saying the most critical issues facing the agency had been addressed. In a letter to President Bush, Falcon said he would leave the Office of Federal Housing Enterprise Oversight on May 20, "absent extraordinary circumstances."
April 1, 2005 |
Freddie Mac, the second-biggest U.S. mortgage buyer, said Thursday that 2004 profit fell 42% as the value of financial contracts used to protect against swings in interest rates declined. Net income decreased to $2.8 billion, or $3.78 a share, from $4.9 billion, or $6.79, in 2003, the company said. The current, or fair, market value of the government-chartered company's assets minus liabilities rose 13% to $30.8 billion, including $26.7 billion attributed to common stockholders.
February 15, 2005 |
Freddie Mac plans to add a new suite of mortgage products aimed at boosting the buying power of low- and moderate-income people by eliminating all but $500 from the required down payment on the home loan, the company said. McLean, Va.-based Freddie Mac said it would announce its "Home Possible" mortgage suite Thursday to mortgage sellers and loan servicers.
February 8, 2005 |
The White House on Monday called for a new, stronger regulator for government-sponsored housing enterprises, saying a problem at one of the giant mortgage funders could spread throughout the financial system. The Bush administration, in an analysis of the U.S. economy that accompanied its budget proposal, questioned the value of Fannie Mae, Freddie Mac and the Federal Home Loan Bank system, given the risks their operations pose.
January 14, 2005 |
Perceived U.S. government backing for Fannie Mae and Freddie Mac is worth billions to shareholders but does little to lower mortgage rates for home buyers, Federal Reserve studies said Thursday. The suggestion that the government-sponsored enterprises fall short in their primary task of promoting homeownership comes as Congress considers toughening oversight after accounting scandals at Fannie Mae and Freddie Mac.