Connect to share and comment

Bank of America to spend $9.33B in Fannie and Freddie mortgage security settlement

Bank of America will spend $9.33 billion to resolve a dispute over mortgage securities with the Federal Housing Finance Agency, the regulator that oversees Fannie Mae and Freddie Mac. The agency sued 18 financial institutions in 2011 over their sales of mortgage securities to Fannie and Freddie. It alleges many banks falsely represented the mortgage loans behind the securities. These soured after the housing bubble burst and lost billions in value.

BofA to pay $9.3 bn over mortgage bonds sold to Fannie, Freddie

Bank of America will pay $9.3 billion to settle US charges that it sold bad mortgage-backed securities to mortgage giants Freddie Mac and Fannie Mae ahead of the housing bust. The settlement, arranged with the Federal Housing Finance Agency, which oversees Fannie and Freddie, covers securities sold by BofA as well as by Countrywide and Merrill Lynch, which were acquired by the bank. jmb/pmh

Fannie, Freddie shares tumble on Senate proposal for wind-down

By Rodrigo Campos NEW YORK (Reuters) - Shares of Fannie Mae <FNMA.OB> and Freddie Mac <FMCC.OB> fell sharply on Wednesday, a day after leaders of the Senate Banking Committee announced an agreement on legislation to wind down the government-owned mortgage financiers.

Investor Fairholme wants governance actions at Fannie, Freddie

(Reuters) - Fairholme Capital Management has sent letters to the boards of U.S. government-controlled Fannie Mae <FNMA.OB> and Freddie Mac <FMCC.OB> seeking corporate governance actions, in a push to let investors have a bigger say in how the companies are run. Fairholme, founded by fund manager Bruce Berkowitz, wants the mortgage companies to stop borrowing funds to pay dividends to the U.S. government, preserve its non-cash assets and establish procedures to address conflicts.

Freddie Mac reimburses US bailout on huge profit jump

Freddie Mac Thursday said its payments to the US Treasury have exceeded its 2008 US bailout funds as the US mortgage-finance giant notched a huge jump in earnings. But Freddie signaled that its meteoric earnings growth, a more than four-fold increase annually, is "not sustainable" long term, in part because of slowing home price gains.

Mortgage giant Freddie Mac posts $8.6B profit in 4Q as home prices rose; paying $10.4B to US

WASHINGTON - Mortgage giant Freddie Mac posted net income of $8.6 billion for the October through December period, its ninth straight profitable quarter. Earnings were boosted by the continued rise in home prices, which reduced the amounts the company had to set aside to cover losses on mortgages. Freddie's fourth-quarter profit reported Thursday nearly doubled from $4.5 billion in the last three months of 2012.

Freddie Mac posts record profit, to surpass $71.3 billion bailout

WASHINGTON (Reuters) - Freddie Mac <FMCC.OB> said on Thursday it will soon send the U.S. Treasury a $10.4 billion dividend after posting a ninth straight quarterly profit, putting taxpayers further into the black on their bailout of the mortgage giant. When it makes the payment next month, Freddie Mac will have paid about $81.8 billion in dividends, more than the $71.3 billion it received from the Treasury when it was bailed out during the financial crisis.

New housing regulator to delay Fannie, Freddie mortgage fee hikes

By Margaret Chadbourn WASHINGTON (Reuters) - Congressman Mel Watt, the incoming director of the Federal Housing Finance Agency, said he plans to delay the increase in fees on government-backed loans that the agency announced this month. The North Carolina Democrat was nominated by President Barack Obama in May and confirmed on December 10 by the Senate to head the agency that oversees Fannie Mae and Freddie Mac.

Ackman's Pershing Square takes big stakes in Freddie, Fannie

By Jennifer Ablan (Reuters) - Activist investor Bill Ackman's Pershing Square hedge fund has invested half a billion dollars to acquire stakes of nearly 10 percent each in Freddie Mac and Fannie Mae, the latest big investor this week to buy into the mortgage finance companies. Shares of both companies surged on Friday, when Pershing said in regulatory filings it has a 9.77 percent stake in common shares of mortgage insurer Freddie Mac and a 9.98 percent stake in Fannie Mae.

Taxpayers close to breaking even on Fannie Mae, Freddie Mac bailout

By Margaret Chadbourn WASHINGTON (Reuters) - Government-run Fannie Mae and Freddie Mac, America's biggest providers of housing finance, will send the U.S. Treasury $39.0 billion in December, leaving them within a hair of paying back their 2008 bailout. Freddie Mac said on Thursday it will pay $30.4 billion in dividends after a multibillion-dollar tax-related windfall fueled a record profit in the third quarter. Its larger sibling and fellow state ward Fannie Mae said it would make an $8.6 billion payment.
Syndicate content