Tag Archives: ginnie mae

As Wall Street Craters, U.S. Treasury Bonds Boom, And Mortgage Interest Rates Fall

The Federal Reserve is buying long-term mortgage backed bonds. This has set off an explosion of demand for such bonds, driving up their price and driving down their yield. About 90% of the funds for U.S. home loans come from … Continue reading

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The Government Can’t Sustain Its Support For The Mortgage Industry

It is inevitable that over the next five years, Fannie Mae and Freddie Mac will be wound down and overall government involvement with the mortgage industry will decrease. There’s only so much subsidizing of inefficient government enterprises that taxpayers will … Continue reading

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Civil Rights Groups, Bankers Fight New Mortgage Lending Rules

Here is an unusual alliance — the NAACP and La Raza on the one hand joining forces with the bankers’ association to fight restrictive new mortgage lending rules. Banks want to be free to lend to whom they want at … Continue reading

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You’ve Got To Put Your Money Somewhere

So why not in mortgage-backed securities? Since the subprime crash in 2007, investors have been reluctant to invest in mortgage-backed securities but high yields are enticing funds. Bloomberg reports: U.S. banks are accelerating purchases of government-backed mortgage securities as declining … Continue reading

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What To Do With Fannie Mae (FNMA) and Freddie Mac (FMCC)?

The Obama administration will release its plans for Fannie Mae (FNMA) and Freddie Mac (FMCC) this month. Will the government guarantee the mortgage bonds and debt securities? That is the key question of investors. How big of a market are … Continue reading

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Why Don’t Banks Lower Rates On Existing Loans?

If lenders do not want borrowers to default, why don’t they lower rates? Why aren’t banks easy to talk to about modifying a mortgage? Because, most of the time, the bank no longer owns your loan. They’ve sold it. It’s … Continue reading

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Wall Street Finds Profits Again, Now by Reducing Mortgages

The New York Times reports: …Wall Street has found a way to make money from the mortgage mess. Investment funds are buying billions of dollars’ worth of home loans, discounted from the loans’ original value. Then, in what might seem … Continue reading

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Three Weeks In A Row Mortgage Rates Rise

They have been at record lows, but few economists expected that to last. With the federal government running massive deficits, there’s competition for money which drives up its price aka interest rates. By historical standards, mortgage rates are still extremely … Continue reading

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A New Plan To Prop Up Mortgages

By Mark Felsenthal WASHINGTON (Reuters) – The Federal Reserve threw a massive life-line to consumers on Tuesday with two new programs aimed at making it easier for them to obtain loans for homes, cars and on credit cards. Under the … Continue reading

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Ben Bernanke Speaks At Housing Conference In Berkeley

Bernanke likes to say he’s an economist, not a politician. He outlines possibilities for the GSEs such as Fannie Mae and Freddie Mac. He surprises me with his support for government intervention. From the AP: He did say that private … Continue reading

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