in News > Residential Mortgage
print the content item
Following its downgrade of the U.S.' long-term sovereign credit rating, Standard & Poor's (S&P) has lowered the issue ratings on Fannie Mae and Freddie Mac. The government-sponsored enterprises' (GSEs) ratings have been dropped from AAA to AA+, in line with the broader downgrade given to the U.S. Friday.

S&P has also lowered its issuer credit ratings for 10 of 12 Federal Home Loan Banks (FHLBs) and the senior debt issued by the FHLB System to AA+ from AAA. The ratings on senior debt issued by the Federal Farm Credit Banks have been similarly downgraded.

S&P downgraded Fannie Mae and Freddie Mac because of their direct reliance on the U.S. government. The FHLB and Farm Credit System downgrades reflected the one-notch reduction in the U.S. sovereign rating.

Two FHLBs - those of Chicago and Seattle - were already rated AA+ prior to the U.S. sovereign downgrade, S&P says.

Additionally, the rating agency has lowered the ratings on 126 Federal Deposit Insurance Corp.-guaranteed debt issues from 30 financial institutions under the Temporary Liquidity Guarantee Program, and four National Credit Union Association-guaranteed debt issues from two corporate credit unions under the Temporary Corporate Credit Union Guarantee Program. The debt issues were downgraded from AAA to AA+.




Latest Top Stories

New Home Sales Rose Slightly In October

It was the fifth consecutive month that the U.S. Census Bureau and U.S. Department of Housing and Urban Development downwardly revised the previous month's new home sales estimate.


PRIA: Two-Thirds Of County Recorders Now Have E-Recording In Place

More than 1,200 counties - or 68% of the nation's 3,600 recording jurisdictions - now have e-recording systems in place, according to a recent study conducted by the Property Records Industry Association.


Rise Of The Humans: Automation Versus Personalized Service

In lending, the increased adoption of more technology-driven methods of business and support should not overshadow the importance of the human element.


Why It's Time To Market HELOCs And Home Equity Loans

Lenders are and should be promoting home equity products that allow borrowers to tap into that rising equity.


Clear Capital: The College Town Effect On Housing

According to Clear Capital, towns with noteworthy university influence boast home price trends that far outperform the national rates of growth since 2004.

Urban Lending_id1351
Hse SandyHook
Industry Resource
Play for Pink
NAMFS_id1399
MBATX_id1385
SWBC_id1313
MBA-TX_id