|Bid||0.0000 x 0|
|Ask||0.0000 x 0|
|Day's Range||2.6400 - 2.8300|
|52 Week Range||0.9800 - 3.1000|
|Beta (3Y Monthly)||2.90|
|PE Ratio (TTM)||N/A|
|Earnings Date||Oct 29, 2019 - Nov 4, 2019|
|Forward Dividend & Yield||N/A (N/A)|
|1y Target Est||1.00|
Yahoo Finance's Julie Hyman, Brian Cheung, and Pras Subramanian join Ed DeMarco, Housing Policy Council President.
Mortgage rates resumed their downward trend, as the U.S – Trade war takes a bigger bite. An escalation in the trade war should deliver more downside.
(Bloomberg) -- The Senate Banking Committee’s top Democrat is warning the Trump administration that carrying out its plan for ending U.S. control of Fannie Mae and Freddie Mac could destabilize the economy if it fails to protect the housing market.Senator Sherrod Brown of Ohio in a Thursday statement pointed to multiple hearings the committee has held this year, during which both Democrats and housing experts cautioned that freeing the mortgage giants from government conservatorship without major reform would be risky.“Failing to listen to these important voices does a disservice to communities and puts our housing market and taxpayers at risk,” Brown said in the statement. An ideal housing reform plan would have mortgage guarantors like Fannie structured like public utilities, and expands investment in affordable housing, he said at a June hearing.Brown’s warning comes even before the public release of the Trump administration’s Fannie and Freddie plan. The Treasury Department has sent its report, which President Donald Trump ordered the agency to write in March, to top officials at the White House, according to people familiar with the matter.The plan, which is awaiting sign-off, will address ways to rebuild capital at Fannie and Freddie, as well as plotting their path out of conservatorship, one of the people said.Fannie and Freddie have surged since Wednesday news articles that the Treasury report had been submitted to the White House and other agencies, with Wall Street taking it as a sign that the administration is making progress on pursuing an overhaul of the companies. Fannie rose 9.6% to $2.68 as of 12:35 pm in New York trading Thursday, while Freddie gained 7.8% to $2.57.Taken over by the government in the midst of the financial crisis, what to do with Fannie and Freddie is the biggest piece of unfinished business from that era. Since their takeover, three presidential administrations and numerous congressional working groups have repeatedly failed to agree on a revamp of the companies that would end government control.To contact the reporter on this story: Austin Weinstein in Washington at email@example.comTo contact the editors responsible for this story: Jesse Westbrook at firstname.lastname@example.org, Gregory MottFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
Borrowing costs on U.S. 30-year and 15-year fixed-rate mortgages fell to their lowest levels since November 2016, in line with the recent decline in bond yields because of trade and recession fears, Freddie Mac said on Thursday. The "curve inversion" among these two debt maturities has often preceded prior U.S. recessions. This market phenomenon touched off a fresh wave of buying in U.S. Treasuries, sending 30-year yields to record lows.
Rates are approaching the lowest level in three years, but are they stimulating Americans’ interest in buying homes?
Freddie Mac (FMCC) today released the results of its Primary Mortgage Market Survey® (PMMS®), showing that the 30-year fixed-rate mortgage (FRM) rate averaged 3.55 percent, the lowest it has been since November 2016. Sam Khater, Freddie Mac’s chief economist, says, “The drop in mortgage rates continues to stimulate the real estate market and the economy. Home purchase demand is up five percent from a year ago and has noticeably strengthened since the early summer months, while refinances surged to their highest share in three and a half years.
(Bloomberg) -- The long-awaited Trump administration plan for freeing Fannie Mae and Freddie Mac from federal control has been sent to top officials at the White House and various government agencies, a sign the report is getting closer to being released publicly, according to people familiar with the matter.A draft of the Treasury Department report was submitted to the White House staff secretary, the people said, who distributes information to senior officials. Among those in possession of the plan is White House economic adviser Larry Kudlow, who is reviewing it and may request changes, said two people with knowledge of the matter, who like the others asked not to be named in discussing internal deliberations.The report will address ways to rebuild Fannie and Freddie’s capital, as well as their path out of conservatorship, one of the people said. But it is unlikely to discuss potential ways to pull off initial public offerings, which is one way to raise capital that some officials have previously examined, the person said.Fannie rose 8.2% to $2.45, while Freddie gained 7.7% to $2.38 following news reports on Treasury’s progress. The companies have more than doubled this year amid a number of public statements from administration officials about their eagerness to get the companies out of the government’s grip.Read More: Fannie and Freddie Died But Were Reborn, ProfitablyOriginally expected to be made public as early as June, the Treasury plan has faced delays as the administration grew wary of taking bold steps that could roil the housing market before the 2020 presidential election.A Treasury spokesman declined to comment, while a White House spokesman didn’t respond to a request for comment.In March, the administration announced a revived push to end the conservatorships of Fannie and Freddie Mac, which the companies entered in 2008 during collapse of the housing market. Since their takeover, lawmakers have repeatedly failed to agree on an overhaul of the companies that would end government control.The public release of Treasury’s report could still be weeks away. And any changes it recommends might take months or even years to implement, indicating that the conservatorships may not end anytime soon.While Fannie and Freddie don’t make loans, they are crucial to keeping the nation’s housing-finance system humming. They buy up mortgages from lenders and package them into bonds that are sold to investors with guarantees of interest and principal, and combined they backstop about $5 trillion of mortgage securities.While many major reforms to the mortgage giants will require cooperation with Congress, administration officials have power to make far-reaching changes to the housing-finance system. Just last month, regulators announced they would end a crucial rule carve-out that benefited Fannie and Freddie.(Adds shares in fourth paragraph.)To contact the reporters on this story: Austin Weinstein in Washington at email@example.com;Saleha Mohsin in Washington at firstname.lastname@example.org;Jennifer Jacobs in Washington at email@example.comTo contact the editors responsible for this story: Jesse Westbrook at firstname.lastname@example.org, Gregory MottFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
(Bloomberg Opinion) -- The U.S. budget deficit will hit $1 trillion in 2020, the Congressional Budget Office announced Wednesday, a big round number that has both Democrats and Republicans worried that the U.S. is on the road to fiscal ruin.They shouldn’t be. In the current global environment, trillion-dollar deficits may actually decrease the odds of a major economic crisis. In fact, one of the main reasons the global economy has been so fragile over the last decade is that large free-market countries have been reluctant to borrow as much as they could.In its report, the CBO estimates that increased spending will add roughly $1.9 trillion to the national debt over the next 10 years, while lower tax revenue will add nearly $300 billion. So the cumulative deficit over the next decade will grow from $12.3 to $14.5 trillion.However — and here is where things get weird — that increase is partially offset by a $1.3 trillion reduction in projected interest costs, bringing the estimate of the overall debt to $13.2 trillion. That is, the CBO expects the government to add some $2 trillion more in debt-financed spending, yet decrease the amount of interest that it pays on its total debt. How is this possible? In part the reason is that the CBO routinely overestimates how much interest the government will pay on its debt. Since its last estimate, interest rates have gone down, not up as predicted, and the new estimates have been adjusted accordingly.But the main explanation for lower borrowing costs is the global shortage of safe assets.Around the world, people in developed countries are aging, and they are looking to move their money to safer, less volatile investments. That almost always means government bonds. At the same time developing countries, eager to assure foreign investors of their economic soundness, are accumulating large reserves of U.S. government bonds. And multinational corporations are buying bonds because they are taking in profits faster than they can find new investments.To sum up: The world is awash in savings looking for a safe place to be stored. Right now, government bonds from wealthy free-market democracies are one of the few assets that fits the bill. As a result, the U.S. government can borrow far more money and pay substantially lower interest rates than traditional models would have predicted.The safe-asset shortage fuels a persistent threat to global financial stability in another way: It encourages financial engineers to design products that they can claim are nearly as safe as U.S. Treasury bonds. The last time this happened, in the early 2000s, they devised ways to package and repackage subprime home loans into bonds that computer models rated as secure as those issued by Fannie Mae and Freddie Mac. Financial companies then sold them to investors desperate for seemingly safe assets. This infusion of capital fueled the issuance of hundreds of billions in subprime loans, and the rest is history.Just as disconcerting, traditional assets have become volatile. If, say, the Chinese stock market remains stable for a few years, it begins to look safer. That safety attracts more investors, which raises prices, making investment appear even safer. Unfortunately, this process also works in reverse (as investors discovered when Chinese stocks crashed in 2015). Again, investors may now be wary about China, but the hunt for safe assets continues, all the while threatening global stability.This fundamental instability makes even a mild global slowdown more dangerous. In order to stimulate the economy, central banks will attempt lower interest rates in an attempt to push investors into the private sector. But government bond rates are already near record lows. At the same time, the bubble-like nature of private-sector assets makes investors even more wary of them. The result? Savings pile up and the global economy enters a long recession similar to the last one.It’s counterintuitive, but democratic free-market governments can reduce the risk of this type of crisis by taking on more debt and issuing more bonds. That would put upward pressure on long-term interest rates, giving central banks more leverage to fight the recession. And by easing the safe-asset shortage, it would reduce the bubbly tendencies of other assets, making investors more willing to hold them even during a recession. Together these effects would mitigate the possibility of a long recession and slow recovery.Unfortunately, the U.S. is the only major developed country increasing its deficit. Germany is running a surplus, the rest of Europe is edging toward a balanced budget and Japan is planning to raise sales taxes to reduce its already falling deficit.This means the U.S. is the world’s biggest supplier of safe government bonds. Fortunately, President Donald Trump seems perfectly happy to issue more debt. But the U.S. won’t always be so obliging. The rest of the developed world, and Germany in particular, should follow the example of the U.S. and temper its budget-balancing zeal. Doing so may create marginally more risk domestically — governments may be forced to raise taxes or cut spending later — but it would lower risk for the global economy. And in today’s world, no country can be safe if the global economy is unstable.To contact the author of this story: Karl W. Smith at email@example.comTo contact the editor responsible for this story: Michael Newman at firstname.lastname@example.orgThis column does not necessarily reflect the opinion of the editorial board or Bloomberg LP and its owners.Karl W. Smith is a former assistant professor of economics at the University of North Carolina's school of government and founder of the blog Modeled Behavior.For more articles like this, please visit us at bloomberg.com/opinion©2019 Bloomberg L.P.
Freddie Mac (FMCC) today announced its third Seasoned Loans Structured Transaction (SLST) offering of 2019—a securitization backed by a pool of approximately $1.4 billion seasoned re-performing loans (RPLs). The SLST program is a fundamental part of Freddie Mac's seasoned loan offerings which reduce less-liquid assets in its mortgage-related investments portfolio and shed credit and market risk via economically reasonable transactions. The first step is an auction of the right to purchase subordinate, non-guaranteed certificates backed by the RPLs, subject to the terms set forth in a securitization term sheet.
Moody's Investors Service ("Moody's") has affirmed the servicer quality ("SQ") assessment of SQ2 for Arvest Central Mortgage Company ("CMC") as a primary Servicer of prime residential mortgage loans. Moody's assessment is based on the company's above average collection abilities, strong loss mitigation results, above average foreclosure and REO timeline management, above average loan administration and average servicing stability. CMC is a wholly-owned subsidiary of Arvest Bank.
Mortgage rates held steady amidst rising fears of a global economic recession and mixed sentiment towards trade. U.S inflation muddied the waters…
MCLEAN, Va., Aug. 16, 2019 -- Freddie Mac (OTCQB: FMCC) announces the pricing of the SB65 offering, a multifamily mortgage-backed securitization backed by small balance loans.
The 30-year fixed-rate mortgage averaged 3.6% during the week ending Aug. 15, unchanged from the previous week, Freddie Mac reported Thursday. The last time mortgage rates were lower was in early November 2016. The 15-year fixed-rate mortgage increased two basis points to an average of 3.07%, according to Freddie Mac (FMCC) .
Freddie Mac (FMCC) today released the results of its Primary Mortgage Market Survey® (PMMS®), showing that the 30-year fixed-rate mortgage (FRM) rate averaged 3.60 percent, unchanged from last week. Sam Khater, Freddie Mac’s chief economist, says, “The sound and fury of the financial markets continue to warn of an impending recession, however, the silver lining is mortgage demand reached a three-year high this week. The decline in mortgage rates over the last month is causing a spike in refinancing activity – as homeowners currently have $2 trillion in conventional mortgage loans that are in the money – which will help support consumer balance sheets and increase household cash flow.
Moody's Investors Service (Moody's) has assigned provisional ratings to 22 classes of residential mortgage-backed securities (RMBS) issued by J.P. Morgan Mortgage Trust (JPMMT) 2019-6. The certificates are backed by 1,131 30-year, fully-amortizing fixed-rate mortgage loans with a total balance of $788,861,418 as of the August 1, 2019 cut-off date.
Moody's Investors Service said it expects little revenue or cash flow impact from yesterday's Federal Housing Finance Authority ruling that the Federal National Mortgage Association and Federal Home Loan Mortgage Corporation must follow a specific process for validating and approving consumer credit scoring models, so there is no change to Fair Isaac Corporation's ("FICO")ratings, including the Ba2 Corporate Family Rating, or the stable rating outlook, at this time. For futher information, please see the Fair Isaac Corporation page at www.moodys.com. FICO provides analytic, software, and decision management products and services that enable businesses, primarily through its FICO® Score credit scoring model, to segregate, price, and manage risk.
Freddie Mac (FMCC) recently priced a new offering of Structured Pass-Through Certificates (K Certificates) backed by floating-rate multifamily mortgages with ten-year terms. The approximately $768 million in K Certificates (K-F66 Certificates) are expected to settle on or about August 30, 2019.
MCLEAN, Va., Aug. 12, 2019 -- Freddie Mac (OTCQB: FMCC) Multifamily recently priced an offering of Structured Pass-Through Certificates (K Certificates) backed exclusively by.
An escalation in the U.S – China trade war and negative business sentiment weighed on mortgage rates. Any near-term upside will be limited at best.
‘There is a tug of war in the financial markets between weaker business sentiment and consumer sentiment.’
Moody's Investors Service ("Moody's") has assigned a rating of Aa1 to the proposed $150 million North Carolina Housing Finance Agency's Home Ownership Revenue Bonds, Series 42 (1998 Trust Agreement). Moody's maintains existing Aa1 ratings on all outstanding Home Ownership Revenue Bonds (1998 Trust Agreement).
MCLEAN, Va., Aug. 08, 2019 -- Freddie Mac (OTCQB: FMCC) recently priced a new offering of Structured Pass-Through Certificates that are backed by multifamily loans sold to a.
Borrowing costs on U.S. fixed-rate mortgages fell to their lowest level since November 2016 in step with a dramatic drop in bond yields due to trade and economic worries, Freddie Mac said on Thursday. Fears about a global downturn, stoked by trade tensions between China and the United States, had set off a rush out of stocks and into low-risk U.S. government bonds since last week before that move subsided on Thursday. "Business sentiment is declining on negative trade and manufacturing headlines, but consumer sentiment remains buoyed by a strong labor market and low rates that will continue to drive home sales into the fall,” Freddie Mac's chief economist Sam Khater said in a statement.