FHFA To Congress: Send More $$$

Posted by Orb Staff on May 26, 2010 No Comments
Categories : Residential Mortgage

Mae and Freddie Mac need more financial aid in order to continue functioning, according to the Federal Housing Finance Agency's (FHFA) second ‘Report to Congress,’ which details the agency's 2009 annual examinations of Fannie Mae, Freddie Mac, the 12 Federal Home Loan Banks (FHLBanks) and the Office of Finance. ‘Fannie Mae and Freddie Mac each remain critical supervisory concerns,’ FHFA Acting Director Edward J. DeMarco wrote to Congress. ‘Throughout 2009, each company remained active in supporting the secondary mortgage market and, together, the enterprises' mortgage purchase and guarantee activity in 2009 represented more than 76 percent of total single-family originations. While critical to supporting the ongoing functioning of the nation's housing finance system, the enterprises would be unable to serve the mortgage market in the absence of the ongoing financial support provided by the U.S. Department of the Treasury.’ The report also stated that the FHLBanks were operating at a less than adequate level due to investments in private-label mortgage-backed securities. The Seattle FHLBank was deemed ‘undercapitalized’ by the FHFA. The full 180-page report can be found at the FHFA [link=http://www.fhfa.gov/webfiles/15784/FHFA2009ReportToCongress52510.pdf]website[/link]. SOURC

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