fannie mae posts
Fannie Mae's quarterly loss shrunk to $1.2 billion. But even as signs point the pressures on Fannie may be easing, it still asked the government for an additional $1.5 billion cash infusion. Fannie Mae and Freddie Mac insured nine of ten new loans in the first quarter.
Fannie Mae's story is the story of the housing debacle. Fannie Mae, and its companion Freddie Mac, are used to insure home mortgages backed by the U.S. government. During the heyday of the housing bubble, Fannie and Freddie ended up guaranteeing risky mortgages. When the subprime mortgage crisis hit, Fannie and Freddie came close to collapsing. The federal government took them over under a process called conservatorship.
Continue reading Fannie Mae Posts Smallest Quarterly Loss Since 2007
Fannie Mae (FNM
) announced Wednesday it told the Securities and Exchange Commission that it will delist its common and preferred stock
. On Tuesday, the company was told that it no longer meets NYSE listing standards of minimum price of its common stock. Shares of FNM have traded below a $1 average price for the past 30 days, triggering NYSE rules for the company to either take action to boost its shares or to delist.
But it wasn't just the exchange's rules and regulations. The Federal Housing Finance Agency announced that it is directing both FNM and Freddie Mac (FRE
) to delist their shares from the NYSE and any other national exchange.
Continue reading Fannie Mae and Freddie Mac to Be Delisted
Do you remember Freddie Mac (FRE)? This is a story for the record books. For years it was difficult to get a handle on Freddie's finances. When the meltdown occurred, Freddie was forced to bring $1.5 trillion onto its balance sheet. In one stroke of the pen this caused Freddie's net worth to plunge $11.7 billion.
With the $1.5 trillion on its books, Freddie has been showing losses. In the recent quarter, Freddie lost $8 billion, or $2.45 per share. That compares with a loss of $10.4 billion or $3.18 per share in the first quarter. This takes into account $1.3 billion in dividends paid to the Treasury Department.
Continue reading Freddie Loses $8 Billion and Seeks Another $10.6 Billion
Last Friday, bailed-out mortgage lender Fannie Mae (FNM
) was the target of a skeptically skewed options strategy. Around midday, the stock's January 2012 1-strike put and 1-strike call each traded a block of 9,995 contracts, both of which were marked "spread." The put options traded at the ask price, suggesting they were purchased, while the calls changed hands closer to the bid price -- indicating they were sold. Open interest at both strikes surged by roughly 10,000 contracts over the weekend, confirming that all of the contracts involved were newly opened.
By simultaneously buying the January 2012 1-strike puts and selling the January 2012 1-strike calls, this speculator has initiated a synthetic short position on Fannie Mae. The purchase of the long puts will allow the trader to profit from any decline in the share price during the long term.
Continue reading Long-Term Speculator Synthetically Shorts Fannie Mae
Late Wednesday, Fannie Mae (FNM) confessed that delinquencies on loans in its single-family guarantee business increased to 5.38% in December, marking a steep increase from 2.42% in December 2008. The multifamily delinquency rate arrived at 0.63% for the final month of 2009, compared to 0.30% in December 2008.
Additionally, Fannie Mae reported that its mortgage investment portfolio contracted by 44.8% to $735.2 billion in January
Continue reading Fannie Mae's Mortgage Delinquencies Climbed in December
Fannie Mae (FNM), the country's largest mortgage lender, said Friday when it reported its latest quarterly results that it needs another $16.3 billion to stay afloat. Fannie Mae has been under water since the government started bailing it out in 2008.
The reason for Fannie's persistent problems are the mortgage defaults spreading throughout the housing industry. Serious delinquencies rose to 5.38% as of December 31, up from 4.72% on Sept 30 and 2.42% at the end of 2008.
Continue reading Fannie Mae Requests Another $16.3 Billion from the U.S. Treasury
The Federal Reserve picked up a $52.1 billion profit last year, a record for the organization. The result is due largely to its 2009 bailout efforts. Of the profit generated, $46.1 billion will be handed over to the Treasury Department -- the largest profit payment made since records began back in 1914. The previous record was $34.6 billion, in 2007. Last year, the Fed turned $31.7 billion over to the Treasury Department.According to the Associated Press
, the profit didn't come from the $700 billion lent to financial institutions -- and then to auto companies like General Motors. Rather, it was the result of earnings from the securities it had in its portfolio last year. Several investment programs were launched last year to help kickstart the U.S. economy and drive down rates on mortgages and consumer debt. Through the programs, the Fed bought $300 billion in government debt, and under another, it's on a trajectory to buy $1.25 trillion in Freddie Mac and Fannie Mae mortgage securities.
Continue reading Fed Profit Tops $50 Billion
If mortgage companies start to feel like they're losing elbow room, it's probably because they're starting to get nudged by the Obama administration. The folks in the White House are planning to kick off a campaign to squeeze mortgage companies to lower payments for even more borrowers who are in trouble. The $75 billion program, financed by taxpayers, to keep homeowners from falling into default appears to be in trouble.
Mortgage lenders have increased their efforts to modify borrowers' mortgages, but most of them are still in a trial stage, which will last up to five months. Only a handful have been made permanent, which isn't good enough for Washington. The Treasury Department's assistant secretary for financial institutions, Michael S. Barr, told the New York Times, "The banks are not doing a good enough job," continuing, "Some of the firms ought to be embarrassed, and they will be."
Continue reading White House, lenders, lawyers and borrowers: Nobody can agree on mortgage relief
Fannie Mae (NYSE: FNM) has initiated a new Deed to Lease program in which homeowners facing foreclosure will be able to stay in their homes as renters.
During the first half of the year, Fannie Mae has acquired 57,000 homes through foreclosure. These are owners who do not qualify for mortgage restructuring. They must demonstrate that they could not pay their mortgage but can pay rent. The rents paid are lower than their previous mortgage payment.
Continue reading Fannie Mae will rent to owners in foreclosure
If you're wondering why Fannie Mae (NYSE: FNM) and Freddie Mac (NYSE: FRE) have been bombarded by selling pressure today, look no further than this Wall Street Journal article (subscription required). The newspaper reports that the Mortgage Bankers Association (MBA) is pushing for the government to split up Fannie and Freddie "into several smaller privately held companies that would issue mortgage related securities carrying an explicit government guarantee."
Under the terms of the proposal, Fannie and Freddie's offspring would no longer be permitted to sit on massive mortgage portfolios. Additionally, all mortgage-backed securities created by the duo would be backed by a federal insurance fund, replacing the rather abstract implied government guarantee that's currently in place.
Continue reading Fannie Mae, Freddie Mac plunge on MBA's proposed overhaul
Next Page >