twitter linkedin
facebook google+

Mortgage News

News by Subject
Complete list of specialty news sections.

Purchase Subscription
Subscribe to and get immediate access to all news, statistics and archives.

Mortgage Advertising
Reach mortgage executives, loan originators and other people tied to mortgage industry.

Consumer Mortgage News
Free mortgage news for prospective borrowers.

Mortgage Newsletter
Free e-mail newsletter with the latest headlines from

Mortgage News Reprints
Put entire stories in your online or printed newsletter or publication.

Mortgage Feedget RSS code
Condensed stories free on your Web site or for your RSS reader.

News Archives
Archive of stories by month going back to 1999.

Press Releases
Reports and announcements from

Mortgage Statistics
Data and statistics for real estate finance.

Mortgage Directories
Directories of lenders, branch operators and mortgage service providers.

Mortgage Graphs
Directories of lenders, branch operators and mortgage service providers.

home subscribe advertise reprints e-mail help RSS about us LOG IN

Mortgage News


Mortgage News

HOT Topics









site map
Corporate Mortgage News
M e r g e r s, a c q u i s i t i o n s and private and public offerings. Other corporate activity including executive appointments, bankruptcies name changes.

Strong Quarter at Fannie

No taxpayer assistance requested in Q2

Aug. 8, 2012

By staff

Quarterly earnings were so strong at the Federal National Mortgage Association that no taxpayer assistance was requested again. Bank of America Corp. accounts for nearly two thirds of all outstanding repurchase demands from the secondary lender. Fannie Mae reported that it has requested that several investor lawsuits be dismissed.

Previously reported operational data for the Washington, D.C.-based company indicated that second-quarter new business acquisitions were $194.6 billion, falling from $221.4 billion in secondary activity during the first quarter.

First-half 2012 volume reflected 1.8 million loans originated by Fannie's lender customers.

Activity picked up from the same period last year, when new business acquisitions totaled $116.8 billion.

The government-controlled company says that it has funded 2.2 million home-purchase mortgages and 8.1 million refinances since 2009.

Fannie, which claims to be the single largest issuer of mortgage-related securities, said its share of single-family issuance fell to 46 percent from the first quarter's 51 percent share. But its share was up from 43 percent a year earlier.

Residential delinquency of at least 90 days fell to 3.53 percent as of June 30 from 3.67 percent as of March 31. It was the ninth consecutive quarter that home-loan delinquency was lower.

At the same point in 2011, the rate was 4.08 percent.

The delinquency rate on loans originated between 2005 and 2008 was 9.38 percent, while it was only 0.33 percent for loans originated since 2009.

Fannie says that its delinquency rate is "substantially lower than private market levels." This is supported by data from, which indicated that the serious delinquency rate was 6.04 percent in June.

Since Jan. 1, 2009, Fannie said it has helped prevent 1.1 million foreclosures. During the first six months of 2012, loan workouts totaled 142,987, including 96,761 home-retention workouts and 46,226 short sales and deeds in lieu of foreclosure.

New multifamily business volume was $13.897 billion in the first six months of this year. First-half 2012 multifamily issuance financed 236,000 units.

Fannie's multifamily book of business finished the second quarter at $196.1 billion. As of March, Fannie said it owned or guaranteed around 21 percent of outstanding debt on multifamily properties.

Fannie disclosed that outstanding repurchase demands totaled $14.576 billion as of June 30. Of the total, $5.948 billion have been outstanding for more than 120 days.

Repurchase demands to Bank of America, N.A., accounted for $9.417 billion of the total. The high volume of repurchase requests for BofA reflects the cozy relationship that existed between BofA-subsidiary Countrywide Financial Corp. and Fannie -- as well as between Countrywide founder Angelo Mozilo and former Fannie chairman and chief executive officer Franklin D. Raines -- during the years leading up to the housing crisis.

The next three counterparties with the biggest outstanding balances were JPMorgan Chase Bank, N.A., with $1.101 billion; CitiMortgage Inc.'s $0.973 billion; and Wells Fargo Bank, N.A.'s, $0.677 billion.

Mortgage Guaranty Insurance Corp. has insured $83.6 billion of Fannie's loans. The next-biggest mortgage insurer was Radian Guaranty Inc. with $67.3 billion insured; then $62.8 billion insured by United Guaranty Residential Insurance Co. and $54.0 billion insured by Genworth Mortgage Insurance Corp.

Second-quarter earnings before income taxes leapt to $5.1 billion from $2.7 billion in the first quarter. Fannie had a $3.0 billion loss in the second quarter of last year.

"The company's continued improvement in financial results in the second quarter of 2012 was almost entirely due to credit-related income, resulting primarily from an improvement in home prices, improved sales prices on the company's real-estate owned properties, and a decline in the company's single-family serious delinquency rate," the report said.

The strong earnings performance left net worth in positive territory -- eliminating the need for taxpayer assistance in the second quarter. No draw was requested in the first quarter either.

Fannie has requested a cumulative total of $116.1 billion in Treasury Department draws since being placed into conservatorship in September 2008. The Treasury has reaped $25.6 billion in cumulative dividend payments through June.

Fannie noted that on April 4, it requested the dismissal of a consolidated amended complaint originally filed on June 22, 2009, by lead plaintiffs Massachusetts Pension Reserves Investment Management Board and Boston Retirement Board (for common shareholders) and Tennessee Consolidated Retirement System. That lawsuit alleges violations of the Securities Act of 1933.

Fannie also filed on April 4 motions to dismiss In re 2008 Fannie Mae ERISA Litigation; Comprehensive Investment Services v. Mudd, et al.; and Smith v. Fannie Mae, et al.

Among several lawsuits over unpaid transfer taxes against Fannie are two being appealed by Fannie in Michigan. On June 29, the plaintiff in one of the Michigan cases filed a motion with the Judicial Panel on Multidistrict Litigation seeking an order transferring all related cases filed as of that date, as well as all subsequently filed related actions, to the U.S. District Court for the Eastern District of Michigan for coordinated or consolidated pretrial proceedings. Fannie said that it has opposed that motion.

"These lawsuits may lead to additional lawsuits relating to the more than thirty states that impose these taxes," a Securities and Exchange filing stated. "We are currently unable to estimate the reasonably possible loss or range of losses arising from these lawsuits given the following factors: (a) taxing authorities may conclude that our charter provides us with an exemption from these taxes, (b) existing opinions from taxing authorities in some jurisdictions may preclude retroactive collection, (c) no plaintiff has demanded a stated amount of damages, and (d) the scope of permissible claims has not yet been determined in any jurisdiction."

Fannie Mae profile

next story

back to current headlines

GSE News | Fannie/Freddie Share Statistics
Fannie, Freddie and FHLB news. Coverage of government sponsored enterprise regulation, operations and litigation.

Secondary Marketing News | Correspondent Lender Directory
Mortgage portfolio trades and forward commitments. Correspondent lending, r e p u r c h a s e s and warehouse news. Secondary marketing statistics and lawsuits.

Mortgage Backed Securities | MBS News | MBS Statistics
News about commercial and residential mortgage-backed securities. Stories about ratings actions and changes to servicer ratings. Studies and reports about the performance of securitizations and problem vintages and classes. Subprime, Alt-A, home equity and j u m b o analysis.

Mortgage Lawsuits News | Mortgage Litigation Index
Mortgage industry lawsuit news and mortgage litigation coverage. Stories about legal settlements, judgments and mortgage class actions.

Origination News | Lender Ranking | Fundings by Lender | Statistics
Quarterly residential mortgage production by lender. Subprime, Alt-A, home equity and conforming originations. Volume by quarter since 2003.

Refinance News | Refinance Share Statistics
News about refinancing programs, pricing and production. Stories about the H o m e
Affordable Refinance Program, H A R P 2.0 and other Making Home Affordable coverage.

Servicing News | Servicer Ranking | Delinquency Statistics
Stories about mortgage servicers, delinquency and f o r e c l o s u r e s. Coverage of servicing lawsuits and loan servicing technology.

Commercial Mortgage News | CRE Lender Directory | CRE Statistics
Stories about commercial lending on multifamily, office, retail and industrial properties.

Logout forgot

SUBSCRIBERS: Edit Subscription | Subscription Help | or call 214.521.1300

Subscribe Contact Us Site Map

Copyright © 2017 Mortgage Daily, D a l l a s
Subsribers Only:

AMC directory

ARM indexes

mortgage company directory

mortgage regulations

net branch directory

p r i c i n g engine directory

wholesale lender directory

More Mortgage News Resources (full site map):

advertising news

appraisal news

bank news

biggest lenders

commercial mortgage news

corporate mortgage news

credit news

FHA news

financial regulation news

foreclosure news

GSE news

jumbo mortgage news

interest rates

loan modification news

loan originator survey

LOS Newsletter


mortgage associations

mortgage-backed securities

mortgage books

mortgage brokers

mortgage compliance

mortgage conferences

mortgage directories

mortgage education

mortgage employment

mortgage employment index

mortgage executives

mortgage fraud

mortgage fraud blog

mortgage fraud local news

Mortgage Fraud Index

Mortgage Graveyard

mortgage insurance news

mortgage lawsuits

mortgage leads

mortgage lender ranking

mortgage licenses

mortgage litigation

Mortgage Litigation Index

Mortgage Market Index

mortgage mergers

mortgage news

mortgage politics

mortgage press releases

mortgage production

mortgage public relations

mortgage rates

mortgage servicing

mortgage statistics

mortgage technology

mortgage video

mortgage Webinars

net branch

net branch directory

nonprime news

origination news

originator tools

real estate news

refinance news

reverse mortgage news

secondary marketing

social media

servicing news

subprime news

wholesale lenders