|Bid||0.0000 x 0|
|Ask||0.0000 x 0|
|Day's Range||2.7600 - 2.9500|
|52 Week Range||0.9800 - 3.2700|
|Beta (3Y Monthly)||2.98|
|PE Ratio (TTM)||122.61|
|Forward Dividend & Yield||N/A (N/A)|
|1y Target Est||N/A|
Yahoo Finance's Julie Hyman, Brian Cheung, and Pras Subramanian join Ed DeMarco, Housing Policy Council President.
Fannie Mae reported its quarter two earnings, showing a drop year-over-year and a dividend payout of $3.4 billion to the U.S. Treasury. Former Fannie Mae executive, Tim Rood, who's also the managing director at SitusAMC, says 'the government has lotted' Fannie Mae and Freddie Mac. He joins Yahoo Finance's Akiko Fujita.
(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 firstname.lastname@example.orgTo contact the editors responsible for this story: Jesse Westbrook at email@example.com, Gregory MottFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
(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 firstname.lastname@example.org;Saleha Mohsin in Washington at email@example.com;Jennifer Jacobs in Washington at firstname.lastname@example.orgTo contact the editors responsible for this story: Jesse Westbrook at email@example.com, 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 firstname.lastname@example.orgTo contact the editor responsible for this story: Michael Newman at email@example.comThis 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.
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.
In the age of online mortgage shopping, it turns out realtors are the most influential source for people researching and selecting a lender.
Moody's Investors Service ("Moody's") has assigned a Aaa rating to the proposed $39,500,000 California Housing Finance Agency, Limited Obligation Multifamily Housing Revenue Bonds (Longshore Cove Apartments), 2019 Issue K. The Aaa rating is based on the highest credit quality of the Fannie Mae (Federal National Mortgage Association, Aaa stable) mortgage backed-security (MBS), a strong legal structure where principal and interest are passed through to bondholders monthly, and cash flow projections that exhibit sufficient revenues to pay full and timely debt service until maturity.
It is becoming more popular for Americans to refinance their mortgages, even as fewer Americans take out mortgages because of a housing crisis.
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 ("Moody's") has assigned a rating of Aaa to the proposed $15,700,000 of the Chattanooga Housing Authority, Multifamily Tax-Exempt Mortgage-backed Bonds (M-TEMS) (Cromwell Hills Apartments Project), Series 2019 (FN). The rating is based on the high credit quality of Fannie Mae and trustee-held investments, sound legal structure of the transaction, and cash flow projections that demonstrate sufficient revenues to pay full and timely debt service until maturity. Fannie Mae is providing a forward commitment to issue a Guaranteed Mortgage Pass-Through Certificate (MBS) by the MBS Delivery Date Deadline (preliminarily expected to occur on August 25, 2021), which MBS principal and interest are passed through to bondholders monthly.
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.
As mortgage rates have dropped this year, more mortgage borrowers are considering refinancing. Last week, applications for mortgage refinances jumped 37% week-over-week following multiple weeks in which mortgage interest rates dropped or stayed at recent lows, according to data released Wednesday from the Mortgage Bankers Association. As of last week, the 30-year fixed-rate mortgage averaged 3.6%, according to Freddie Mac.
Moody's Investors Service has assigned Aaa ratings to Iowa Finance Authority ("IFA" or the "Authority") approximate $61 million Single Family Mortgage Bonds, 2019 Series D (Non-AMT) (Mortgage-Backed Securities Program) and $10 million Single Family Mortgage Bonds, 2019 Series F (Taxable) (Mortgage-Backed Securities Program) ("2019 Bonds"). For provisional ratings, this announcement provides certain regulatory disclosures in relation to the provisional rating assigned, and in relation to a definitive rating that may be assigned subsequent to the final issuance of the debt, in each case where the transaction structure and terms have not changed prior to the assignment of the definitive rating in a manner that would have affected the rating.
With the second half of 2019 well underway, let’s take a look back at 10 numbers that defined the activity on OTC Markets through the first six months of the year. 1) 187 The number of securities that ...
More than one in three mortgage borrowers are leaving money on the table. Over a third of 2018 home buyers said they did not shop around before choosing a mortgage lender, according to a study by Fannie Mae (FNMA) And repeat home buyers were more likely to take the leap with a lender without comparing competing offers: 41% of these buyers only got one quote versus 34% of first-time buyers. Nearly two-thirds of borrowers who only reviewed one quote before taking out a mortgage said they chose not to compare competing offers either because they were either comfortable with the lender they got the initial quote from or were satisfied with the quote itself.
New data from Fannie Mae reveals that taking the time to shop around for mortgages ultimately rewards consumers with more affordable quotes.