The US housing market is headed for the largest sales slowdown since 2011, Fannie Mae says
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Business Insider ^
| 09/21/2023 | Jennifer Sor
US home sales are headed for the biggest slowdown since 2011, according to Fannie Mae. The government-sponsored mortgage finance company forecasted total home sales to slump to just 4.8 million this year, marking the slowest sales environment since 2011. That
figure will only improve slightly in 2024, with total home sales expected to hit 4.9 million, Fannie Mae economists said. The slump in sales is partly being influenced by high mortgage rates, with the average rate on the 30-year fixed mortgage rising to 7.18% over the last week, according to Freddie Mac data. That means prospective home buyers are facing...
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Can You Spot The Fed’s Policy Errors? The Fed And Fannie/Freddie’s Demise After 3 Fed Policy Errors (We Are Now In PE5!)
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Confounded Interest ^
| 03/18/2022 | Anthony B. Sanders
The Federal Reserve is not mentioned in the movies “The Big Short” or “Margin Call”, but The Fed’s policy errors played a big role in the demise of Fannie Mae’s and Freddie Mac’s equity prices. Here
is a chart of The Fed’s many policies errors. Let’s start with The Fed lowering rates too fast around the 2001 recession. They pushed their target rate from 6.5% in December 2000 down to 1.75% after one year and then down to 1% (PE1). As home price growth accelerated, The Fed engaged in their second policy error — raising rates too fast resulting in...
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Simply Unaffordable! Fannie Mae Multifamily Financing Grew 23% ... While Home Prices Grew 19.1% And Real Hourly Earnings Fell -2.36% (Rising Mortgage Rates Make The Affordability Problem WORSE)
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Confounded Interest ^
| 01/16/2022 | Anthony B. Sanders
Mortgage Orb has the tantalizing headline: “Fannie Mae’s Financing for Multifamily Affordable Housing Grew Over 23%.” At
first, this sounds amazing … until you realize how simply unaffordable housing is much of urban/suburban America. If you look at the following chart, you can see multifamily (5+ unit) starts remain elevated (pink box) which is not surprising given that home prices at growing at 19.1% YoY nationally (orange circle) and REAL hourly earnings have declined (yellow triangle) thanks to reemergence of inflation after 40 years. Then we have the humming dragon, rising mortgage rates, that will reduce housing affordability even further....
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Fannie Mae, Freddie Mac to Back Home Loans of Nearly $1 Million as Prices Soar
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Wall Street Journal ^
| November 16, 2021 | Andrew Ackerman
The federal government is about to back mortgages of nearly $1 million for the first time. The
maximum size of home-mortgage loans eligible for backing by Fannie Mae and Freddie Mac are expected to jump sharply in 2022, a reflection of the rapid appreciation in home prices nationally over the past year. The increase may make it easier and cheaper for some borrowers to buy a home, particularly in more expensive areas of the country, but the higher limits are also likely to elevate debate about how big of a mortgage is too big to be backed by the government....
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Fannie, Freddie May Soon Buy Home Loans in Forbearance to Help Mortgage Firms
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The Wall Street Journal ^
| 20 April 2020 | Andrew Ackerman
A top U.S. regulator is considering taking steps to ease strains on mortgage companies facing a cash crunch as millions of Americans struggling with fallout from the coronavirus suspend their monthly payments, according to people familiar with the matter. The
Federal Housing Finance Agency is weighing whether to allow Fannie Mae and Freddie Mac, the government-controlled mortgage-finance giants, to buy home loans that recently entered forbearance, meaning borrowers have stopped making payments, the people said. That would help nonbank mortgage companies that lend to home buyers and then quickly sell the loans to Fannie and Freddie. The strategy was upended...
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After the Mortgage Crisis Bailout: Have Fannie and Freddie Paid the Taxpayers Back Yet?
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RCM ^
| 09/20/2019 | Alex Pollock
The distinguished judges of the U.S. Court of Appeals for the Fifth Circuit have considered how much Fannie Mae and Freddie Mac have paid the Treasury Department to compensate the taxpayers for the giant bailout which kept Fannie and Freddie in existence and business. The
court observed in its September 6 judgment: “The net worth sweep transferred a fortune from Fannie and Freddie to Treasury.” Specifically, “Treasury had disbursed $187 billion and recouped $250 billion.” The “net worth sweep” is the dividend on the senior preferred stock in Fannie and Freddie acquired by the Treasury in the bailout. Originally set...
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Privatizing Fannie Mae and Freddie Mac is a Start
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www.frontpagemag.com ^
| September 5, 2019 | Daniel Greenfield
The level of government interference and taxpayer exposure in the housing market has always been a huge problem. Higher
education and mortgages have been key weapons of social engineering. The creation of massive amounts of debt and the entanglement of the government and taxpayers in mortgages was a major cause of the last economic meltdown. The solution here is at best incomplete, but it's a reasonable next step. Especially when dealing with 2020 Democrats who would love nothing more than to create another trillion dollar catastrophe by bribing their voters like crazy. The Trump administration on Thursday released its first...
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Fannie and Freddie Back More Mortgages of Those Deeply in Debt
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Wall Street Journal ^
| May 13, 2019 5:30 a.m. ET | Ben Eisen
The gatekeepers of the American mortgage market are increasingly backing loans to borrowers who have heavy debt loads, highlighting questions about mortgage risk as policy makers debate ways to change the system. Almost
30% of loans that mortgage giants Fannie Mae and Freddie Mac packaged into bonds last year went to home buyers whose total debt payments amounted to more than 43% of their incomes, according to an analysis by industry research group Inside Mortgage Finance. The share has nearly doubled since 2015. Data on other government mortgage programs also show an increase. The backing of these loans opens up...
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Fannie Mae and 'Freddie Maxine'
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Townhall.com ^
| November 13, 2018 | Stephen Moore
Democratic Rep. Maxine Waters of California appears a lock to become the next chairman of the House's powerful Financial Services Committee. Waters is pledging to be a diligent watchdog for mom and pop investors, and recently told a crowd that when it comes to the big banks, investment houses and insurance companies,
"We are going to do to them what they did to us." I'm not going to cry too many tears for Wall Street since they poured money behind the Democrats in these midterm elections. You get what you pay for. But here we go again asking the fox...
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Fannie-Freddie Might Need $100 Billion in New Crisis, FHFA Says
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source content cannot be posted due to copyright issues | 07 August 2017 | Joe Light
see link in post below
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Obama Looted Fannie Mae and Freddie Mac
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American Thinker.com ^
| July 29, 2017 | Brian McNicoll
President Obama never was shy about using his phone and pen to achieve what he could not get from Congress on regulatory matters. But
documents revealed last week show the Obama administration may have been willing to get around congressional decisions on spending by using a slush fund of sorts funded by the profits of Freddie Mac and Fannie Mae, the two government-sponsored home loan giants. Fannie and Freddie are federally chartered enterprises which buy mortgage loans from banks and bundle them into securities that are sold to investors, thus freeing up capital so that banks can make more home...
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FannieGate: Obamacare Looting Scheme by diverting Fannie and Freddie Funds
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Living Lies Web Blog ^
| 5/2/17 | Neil Garfield, Esq.
"An examination of the Treasury Department’s balance sheet for Fiscal Year 2013 documented how the Obama administration diverted billions of dollars into Obamacare that Treasury confiscated from Freddie and Fannie earnings."
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Fannie Mae Introduces Innovative Solutions for Borrowers with Student Loan Debt
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Fannie Mae ^
| 25 April 2017 | Aleksandrs Rozens
Fannie Mae (FNMA/OTC) announced new policies that will help more borrowers with student debt qualify for a home loan. These
innovations address challenges and obstacles to homeownership due to a significant increase in student loan debt over the past decade and provide access to credit for qualified borrowers. The new solutions give homeowners the opportunity to pay down student debt with a mortgage refinance, allow borrowers to exclude non-mortgage debt paid by others as part of the loan application process, and make it more likely for borrowers with student debt to qualify for a mortgage loan by allowing lenders to...
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Investors in America's housing-finance giant lose in court (Fannie and Freddie)
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Economist ^
| 25 February 2017
One unresolved issue from the financial crisis is the future of Fannie Mae and Freddie Mac, the two firms that stand behind much of America’s housing market. Fannie
and Freddie purchase mortgages, bundle them into securities and sell them on to investors with a guarantee. When America’s housing market collapsed a decade ago, the government had to bail them out. Its treatment of the firms since then has created a titanic legal struggle. Shareholders have cried foul. On February 21st, a federal appeals court upheld a ruling in the government’s favour. At issue is the Obama administration’s decision in 2012...
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Government's Fannie Mae will back PE giant Blackstone's rental homes debt
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CNBC ^
| 25 January 2017 | Diana Olick
Mortgage giant Fannie Mae is getting into the single-family rental business in a big way. The
government-backed agency said it is going into business with private equity giant and major housing player Blackstone by backing $1 billion in debt. Blackstone's Invitation Homes filed for an initial public offering this week, and the Fannie Mae relationship was disclosed afterward. Blackstone is looking to raise $1.6 billion by selling shares to the public. Fannie Mae, currently under government conservatorship, will back $1 billion in debt collateralized by rental homes owned by Blackstone. Invitation Homes currently has a portfolio of about 50,000 single...
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Trump's Treasury Pick Says U.S. Should Get Out of Freddie Mac and Fannie Mae
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Reuters/Fortune ^
| December 1, 2016, 6:00 AM EST
His comments sent shares of Fannie and Freddie to their highest levels since September 2014. U.S.
President-elect Trump’s nominee for Treasury Secretary, Steven Mnuchin, on Wednesday waded into the long-running battle over the future control of Fannie Mae and Freddie Mac, the largest players in the U.S. home mortgage market, saying that the lenders should be returned to private control.
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1902
Fannie Farmer opens cooking school
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History Channel ^
| 8/23/2016 | History today
On this day in 1902, pioneering cookbook author Fannie Farmer, who changed the way Americans prepare food by advocating the use of standardized measurements in recipes, opens Miss Farmer’s School of Cookery in Boston. In addition to teaching women about cooking, Farmer later educated medical professionals about the importance of proper nutrition
for the sick.
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A Palace For Fannie (Mae)—–Why The Imperial City Must Be Sacked
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Contra Corner ^
| David Stockman
To hear the establishment media tell it, you would think that Attila the Hun was fixing to sack the Imperial City. Would that Donald Trump were that bold or dangerous. Then
again, he is a showman of no mean talents. So if there is a maquette of Fannie Mae’s planned new $770 million headquarters somewhere around Washington DC, he could start the sacking right there. Hopefully, he would not hesitate to shatter it with a fusillade of tweets—-or even take a jackhammer to it while wearing a Trump hard hat. Fannie Mae is surely a monument to crony capitalist corruption,...
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Fannie Mae Names Three Housing Finance Veterans to Board of Directors
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PR Newswire ^
| 09 June 2016
Fannie Mae (OTC Bulletin Board: FNMA) recently announced that Hugh R. Frater, Renee L. Glover, and Michael J. Heid have been elected to the Board of Directors. These three new Directors are recognized industry leaders with deep and diverse housing finance expertise. The
new Directors join other similarly accomplished individuals on a Board of Directors that will help guide Fannie Mae in its drive to be America's most valued housing partner. "We are thrilled to add these seasoned executives to the Fannie Mae Board of Directors," said Egbert L.J. Perry, chairman of the Board. "These three leaders bring to the...
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This Fannie-Freddie resurrection needs to die
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Washington Post ^
| 03 June 2016
Consider the persistent non-solution to the zombie-like status of Fannie Mae and Freddie Mac known as “recap and release.” The
plan is to return the two mortgage-finance giants to their pre-financial-crisis status as privately owned but “government-sponsored” enterprises. That is to say, to recreate the private-gain, public-risk conflict that helped sink them in the first place. Their income would recapitalize the entities, rather than be funneled to the treasury, as is currently the case. Then they could exit the regulatory control known as “conservatorship” that has constrained them since 2008 — and resume bundling home loans and selling them, as...
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