AP - EXECUTIVES CHARGED: Two former CEOs at mortgage giants Fannie Mae and Freddie Mac, and four other executives, were charged with civil fraud, the Securities and Exchange Commission said Friday. They are the highest-profile individuals to be charged in connection with the 2008 financial crisis.
Fannie Mae (FNMA) and Freddie Mac (FMCC) regulator, Federal Housing Finance Agency (FHFA), has announced a shift in its policies, which may increase mortgage lending. The new policies will help the mortgage giants maintain their position in the housing market, help out distressed homeowners, and stimulate home lending.
Fannie Mae (FNMA) and Freddie Mac (FMCC) were the publicly-traded companies that were hit the most during the financial crisis of 2008. The value of these government sponsored enterprises (GSEs) tanked over 90% after the housing market crashed. Shares of the mortgage giants were trading at under 30 cents apiece in the first quarter of 2013, but have since rallied strongly.
Fannie Mae (FNMA) and Freddie Mac (FMCC) may wind down, after the Senate Banking Committee passed a bill with a 13 to 9 vote. The mortgage giants’ fate hangs on Senate approval, which is expected to be put to a vote next year, but the chances for any widespread reform look very thin and would become thinner still should the Democrats lose control of the Senate after the midterm elections to be held in November.
Bank of America Corporation (BAC), the second largest bank in the US in terms of total assets, agreed to settle with the Federal Housing Finance Agency (FHFA) – which regulates the Federal National Mortgage Association (FNMA) and the Federal Home Loan Mortgage Corporation (FMCC) – for $9.5 billion over a dispute regarding risky mortgage securities sold to Fannie Mae and Fre
Fannie Mae (FNMA) and Freddie Mac (FMCC) have witnessed robust growth after recovering from the fall they took in the 2008 financial crisis. The government-sponsored enterprises (GSEs) lost almost 90% of their market value and their share prices fell below 30 cents a share. But the mortgage giants recovered strongly after the government bailout.
The Federal National Mortgage Association (FNMA) and the Federal Home Loan Mortgage Corporation (FMCC) were the worst-hit publicly traded companies during the mortgage crisis that started to unfold in late 2007. One year into the crisis, both government-sponsored enterprises (GSEs) had lost more than 90% of their share value.