September 8, 2008 |
Most borrowers never come into contact with mortgage finance giants Fannie Mae and Freddie Mac. That's because the companies work with lenders rather than consumers. Nevertheless, Fannie and Freddie play an essential role in the mortgage industry and the economy in general. Here are answers to some basic questions about these companies and your stake in them: -- What are Fannie Mae and Freddie Mac? They are called government-sponsored enterprises because they initially were formed by the federal government.
CALIFORNIA | LOCAL
February 12, 2012 |
Four years after Countrywide Financial became a symbol of the mortgage meltdown, the company and its questionable dealings have become a potent political issue in the Santa Clarita congressional district held by Republican Howard "Buck" McKeon. Congressional investigators allege that McKeon and Rep. Elton Gallegly, a Republican colleague whose neighboring district includes much of Ventura County, got cut-rate home loans under a Countrywide VIP program known as "Friends of Angelo," named for the now-defunct Calabasas lender's former chief executive, Angelo Mozilo.
May 5, 2012 |
A nation still struggling to clear up one housing debacle has run smack into another - soaring rents. The foreclosure mess has pushed millions of former homeowners with tarnished credit into a competitive apartment market across the U.S. Add fresh demand from young workers, few new units and tight standards for home loans, and the result is rental sticker shock not seen in years. Rents are surging from New York to Los Angeles. The average monthly U.S. rent for apartments hit $1,008 in the first quarter, pushing past the all-time high set in the third quarter of 2008, according to the data firm RealFacts.
December 4, 2012 |
Sales of government-backed mortgage securities rose in November to the highest level in more than three years, stoked by a refinance boom and a rush by banks to avoid a fee increase from Fannie Mae and Freddie Mac. Nearly $176 billion in bonds backed by fixed-rate home loans were issued in November, up from $132 billion in October and the most since $229 billion in June 2009, MortgageDaily.com reported Monday, citing the data firm eMBS Inc. ...
November 5, 1993 |
Two Cabinet agencies Thursday announced stepped-up efforts to combat racial discrimination in mortgage lending as the government reported that blacks with the highest incomes are being turned down for home loans at the same rate as the lowest income whites. "To tolerate discrimination in housing in any form diminishes our potential to live and grow together as a nation," Atty. Gen.
February 11, 2011 |
The average rate on a 30-year mortgage zoomed past 5% this week, reaching the highest level in nine months. Home-loan rates have been surging since November, tracking yields on Treasury bonds, as the economy has shown increasing signs of strength. This week, lenders have been offering 30-year fixed-rate home loans at an average of 5.05% to low-risk borrowers willing to pay an upfront fee equal to 0.7% of the loan balance, Freddie Mac said Thursday. The rate was up from a record low 4.17% in November ?
June 17, 2011 |
Mortgage rates leveled off this week after falling for eight weeks in a row, according to a Freddie Mac survey of lenders. The average interest rate on 30-year home loans edged up to 4.5% from 4.49% last week, Freddie Mac said Thursday. The rate is down from 4.91% in mid-April. The average for a 15-year fixed loan fell a notch to 3.67% from 3.68%. For both term lengths, upfront fees averaged 0.7% of the amount being borrowed. Freddie Mac's survey asks lenders the rates they are offering to people with good credit and a down payment of at least 20%, or at least that much home equity for a loan refinancing.
January 21, 2010 |
Some banks are finding ways to make money from mortgages despite the continuing difficulties many homeowners are having in making their home payments. The country's two biggest home lenders, Bank of America Corp. and Wells Fargo & Co., posted fourth-quarter earnings Wednesday that were bolstered by better-than-expected profits in their mortgage operations. These profits, however, had little to do with the health of the companies' mortgage portfolios, which are still generating a wave of defaults and losses for the banking giants.
August 9, 2011 |
Bank of America Corp. lost a fifth of its stock value in a general market rout amid heightened concerns about its ability to get ahead of the bad mortgages it holds, as well as the billions of dollars committed to resolving soured securities and home loans. Unease about the bank's continued malaise from the mortgage meltdown have grown in recent weeks, and some industry analysts pondered the possibility that the nation's largest consumer bank would have to seek additional capital to shore up its finances — especially if the nation heads into another recession.
February 12, 2011 |
The Obama administration is moving to dramatically downsize the government's role in the mortgage business, saying taxpayers can no longer afford the cost and the risk of subsidizing home loans on a grand scale. The administration's plan calls for gradually shutting down Fannie Mae and Freddie Mac, which now control nearly half of the $11-trillion mortgage market. The two companies have cost taxpayers $150 billion since they were seized by federal regulators in 2008. Real estate industry groups attacked the proposal, saying it would make it tougher for average Americans to get home loans and thereby weaken the housing market.