Below Market Rate, GSE-Style. Maybe the best way to attract low-income home buyers is to cut interest rates to a level they can't refuse. And both Fannie Mae and Freddie Mac have worked out deals with local governments and housing agencies that may prove attractive to low-mod borrowers who have been discouraged by the recent interest rate rise. Freddie Mac's deal, developed under the connecticut state treasurer's affordable residential mortgage plan, is available to buyers who meet credit requirements and earn enough to carry a monthly mortgage payment. Those buyers may qualify for a low-interest loan that, occasionally, may be up to three-eighths of a percentage point below market rate at the time of the application. As much as $50 million is available for the program, which is available through 21 local lenders. Freddie said it plans to sell the securities packaged from the program's mortgages to the Connecticut state pension fund for its portfolio. While Freddie's program is aimed at Connecticut residents, Fannie Mae has focused on Texas. Fannie has purchased nearly $58.5 million of short-term, tax-exempt convertible option bonds issued by the Texas Department of Housing and Community Affairs. The bonds will be converted to tax-exempt, long-term single-family mortgage revenue products under the forward delivery structure of Fannie Mae's MBS Express program. The program will benefit nearly 1,000 low-mod families throughout Texas and Fannie said more $15 million is available to eligible first-time home buyers.
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The Jackson, Mississippi, company will use proceeds from the sale of its Fisher Brown Bottrell Insurance unit to restructure its investment portfolio, moving $1.6 billion of low-yield securities off the balance sheet.
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The store-branded card issuer is raising annual percentage rates and adding fees for paper statements to compensate for lost revenue. The Consumer Financial Protection Bureau's new regulation is scheduled to take effect on May 14.
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At the banks' annual meetings, shareholders at both companies struck down proposals that would have split the board chair and CEO roles. Two other proposals also failed to win shareholder support, one concerning energy financing and another on pay gap analysis.
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Congressional Review Act resolutions are ramping up ahead of the 2024 election cycle. Experts say that, although none are likely to become law, the resolutions are still powerful messaging and political tools.
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The ABA is testing an information-exchange network to allow banks to share their fraud data with each other. Companies including Baselayer are also building solutions.
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Republicans on the House and Senate Small Business committees are accusing the SBA of being irresponsible in granting Funding Circle permission to participate in its flagship loan-guarantee program.
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