WASHINGTON — Fannie Mae, the government sponsored enterprise that buys more home loans than any other entity, defied the markets by posting a quarterly loss May 5 of $2.2 billion. The Fannie Mae tempered the bad news with some good: It pledged to raise an additional $6 billion from investors to buy more mortgages from credit unions, banks and other lenders.
Coming off an announcement from the Office of Federal Housing Enterprise Oversight, Fannie Mae's regulator, that it had lifted restrictions placed on Fannie Mae after an accounting scandal two years ago, the news bolstered confidence in Fannie, and the its stock price climbed.
Mortgage industry officials see Fannie now in a good position to help more homeowners by buying loans from lenders that have held back credit in the ongoing crunch, which has been led by losses in the housing sector, declining home values and increasing foreclosures.
Complete your profile to continue reading and get FREE access to CUTimes.com, part of your ALM digital membership.
Your access to unlimited CUTimes.com content isn’t changing.
Once you are an ALM digital member, you’ll receive:
- Critical CUTimes.com information including comprehensive product and service provider listings via the Marketplace Directory, CU Careers, resources from industry leaders, webcasts, and breaking news, analysis and more with our informative Newsletters.
- Exclusive discounts on ALM and CU Times events.
- Access to other award-winning ALM websites including Law.com and GlobeSt.com.
Already have an account? Sign In
© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
