Tag Archives: Fannie Mae

Fannie Mae's Economic & Strategic Research Group expects economic growth in the first quarter to come in around 2.0 percent, but thereafter, the economy should pick up. Economic growth for the year is expected at 2.7 percent, according to the research group.

As the Home Affordable Modification Program (HAMP) reaches its five-year anniversary, some HAMP loans, including Fannie Mae HAMP loans, will begin to experience an increase in mortgage rates. When loans were modified, they were provided a below-market rate to help struggling homeowners. The rate was good for a set period of time, often five years, which makes HAMP's anniversary bittersweet for some homeowners who will now face rising interest rates.

Committee chairman Tim Johnson (D-South Dakota) and ranking member Mike Crapo (R-Idaho) of the Senate Banking Committee announced Tuesday plans to move forward on a new proposal to wind down Fannie Mae and Freddie Mac in favor of a new government backstop for private financiers.

Asked about home price trends over the next year, 50 percent of respondents in Fannie Mae’s February National Housing Survey said they expect improvements, a recovery from a slide to 43 percent in January. A slightly larger number of consumers anticipate price declines—7 percent, up from 6 percent—while the share of those forecasting no significant movement was down to 38 percent.

Bruce Berkowitz, managing member and chief investment officer of Fairholme Capital Management, sent a letter to both Fannie Mae and Freddie Mac on Monday, urging the directors to "act in the best interests of each company and in accordance with accepted best practices for corporate governance."

Strong fourth-quarter 2013 earnings by Freddie Mac capped a year of unprecedented financial earnings for the government-sponsored enterprises (GSEs), but reflect several one-time items, according to a release issued by Fitch Ratings. Fitch comments, "While results of the type posted in 2013 will not be repeated, Fitch Ratings expects increased guarantee fees (g-fees) and improving mortgage credit quality to support continued profitability for the GSEs this year."

The housing market’s cooler-than-expected first quarter should just be a temporary blip in a year of modest overall growth, according to Doug Duncan, chief economist at Fannie Mae. Fannie Mae’s latest economic forecast notes harsh weather stunted new home construction in Q1 2014, but the report also reaffirms Fannie Mae's position that the economy and housing markets will improve on 2013 growth by the end of Q4.

Per new regulations finalized last week, the GSEs will be required to file suspicious activity reports (SARs) directly with the Financial Crimes Enforcement Network (FinCEN) rather than through their own regulator. Developed in coordination with the Federal Housing Finance Agency (FHFA), FinCEN’s final rule is intended to provide law enforcement and regulators with a more complete picture of mortgage fraud.

Fannie Mae released its weekly yield for February 17, through February, 21. For 15-year, fixed-rate mortgages, the current market yield is noted was 2.970, up from the previous weeks figure of 2.870. The 15-year mortgage has increased from 2.310 a year ago. The Fannie Mae release comments that all yields are quoted on a net basis, and servicing fees are not included.

Fannie Mae released its Comprehensive Income Statement for the fourth quarter of 2013, noting a quarterly net income of $6.5 billion. It was the eighth consecutive quarterly profit for the government-sponsored enterprise (GSE), resulting in a large dividend payment to the U.S. Department of the Treasury.