U.S. regulator opens door wider for Americans on mortgages - News and Current Events | futures io social day trading
futures io futures trading

U.S. regulator opens door wider for Americans on mortgages
Updated: Views / Replies:144 / 0
Created: by kbit Attachments:0

Welcome to futures io.

(If you already have an account, login at the top of the page)

futures io is the largest futures trading community on the planet, with over 90,000 members. At futures io, our goal has always been and always will be to create a friendly, positive, forward-thinking community where members can openly share and discuss everything the world of trading has to offer. The community is one of the friendliest you will find on any subject, with members going out of their way to help others. Some of the primary differences between futures io and other trading sites revolve around the standards of our community. Those standards include a code of conduct for our members, as well as extremely high standards that govern which partners we do business with, and which products or services we recommend to our members.

At futures io, our focus is on quality education. No hype, gimmicks, or secret sauce. The truth is: trading is hard. To succeed, you need to surround yourself with the right support system, educational content, and trading mentors Ė all of which you can find on futures io, utilizing our social trading environment.

With futures io, you can find honest trading reviews on brokers, trading rooms, indicator packages, trading strategies, and much more. Our trading review process is highly moderated to ensure that only genuine users are allowed, so you donít need to worry about fake reviews.

We are fundamentally different than most other trading sites:
  • We are here to help. Just let us know what you need.
  • We work extremely hard to keep things positive in our community.
  • We do not tolerate rude behavior, trolling, or vendors advertising in posts.
  • We firmly believe in and encourage sharing. The holy grail is within you, we can help you find it.
  • We expect our members to participate and become a part of the community. Help yourself by helping others.

You'll need to register in order to view the content of the threads and start contributing to our community.  It's free and simple.

-- Big Mike, Site Administrator

Thread Tools Search this Thread

U.S. regulator opens door wider for Americans on mortgages

  #1 (permalink)
Elite Member
Aurora, Il USA
Futures Experience: Advanced
Platform: TradeStation
Favorite Futures: futures
kbit's Avatar
Posts: 5,884 since Nov 2010
Thanks: 3,303 given, 3,334 received

U.S. regulator opens door wider for Americans on mortgages

The regulator of Fannie Mae and Freddie Mac laid out plans for the government-run companies on Tuesday that could make it easier for Americans to obtain mortgages, marking a sharp departure from a predecessor who wanted to aggressively shrink their role in the housing finance market.

Federal Housing Finance Agency Director Mel Watt, in his first public speech since taking office in early January, said he would hold off on a proposed reduction in the size of loans the firms can buy, and added he was jettisoning plans to reduce the financing they provide for apartment building loans.

He also said the two companies, which own or guarantee about 60 percent of all U.S. home loans, would ease standards that govern when banks must buy back faulty loans from them, which could also help open the credit taps.

"I don't think it's FHFA's role to contract the footprint of Fannie and Freddie," Watt said at an event sponsored by the Brookings Institution. "Our overriding objective is to ensure that there is broad liquidity in the housing finance market and to do so in a way that is safe and sound."

The Senate Banking Committee will consider a bill on Thursday to replace Fannie Mae and Freddie Mac with an industry-financed government mortgage reinsurer, but the likelihood of any legislation becoming law soon is slim, leaving the regulator with power to direct the firms.

Watt said he did not see it as his role to weigh in on the debate.

Both Watt's predecessor, Edward DeMarco, and the Obama administration favored cutting the size of so-called conforming loans as a way to make room for more private capital. But housing industry groups had warned the step could undercut a market that already appears to be flagging.

Federal Reserve Chair Janet Yellen said last week there was a risk a protracted housing slowdown could undermine hopes for stronger economic growth this year.

"FHFA will not use its authority as conservator to reduce current loan limits," Watt said. "This decision is motivated by concerns about how such a reduction could adversely impact the health of the current housing finance market."

Some investors saw the shift as making it more likely the bailed-out companies, which lawmakers and the Obama administration want to shut down eventually, would ultimately survive. Their common stock shot up more than 11 percent in early trading to around $4.70 a share. If the companies are wound down, the stock would likely be worthless.

Investors also seemed heartened by Watt's decision to not force Fannie Mae and Freddie Mac to pull back support for multi-family housing. The PHLX Housing Index of homebuilders ticked up 0.7 percent, with several major builders, including PulteGroup, Lennar and KB Home all rallying.


In easing rules that govern when banks are required to repurchase faulty mortgages they sold to the two companies, Watt took aim at a risk that lenders cite for the still-tight credit that has hindered the housing recovery.

Watt said Fannie Mae and Freddie Mac, which buy mortgages and package them into securities they issue with a guarantee, would expand the universe of loans exempt from repurchase requests in part by relaxing mortgage payment history requirements.

"While none of his actions will solve the mortgage credit crunch. They all will help at the margins," said Jaret Seiberg, a senior policy analyst at Guggenheim Securities. "The path Watt has laid out is positive for mortgage originators, mortgage insurers and homebuilders."

DeMarco earned a reputation as a staunch protector of the taxpayers who bailed out Fannie Mae and Freddie Mac with $187.5 billion, but housing advocates felt he did not do enough to help Americans whose home values plummeted when the U.S. housing bubble burst.

Watt said his agency had no plans to cut mortgage principal for borrowers whose homes were now worth less than their mortgages, but he said that did not necessarily mean FHFA was "not considering it."

He also announced a pilot program in Detroit that would permit extended loan modifications than available under a program that helps so-called underwater borrowers refinance loans. He said the FHFA hoped to expand the program nationwide.

U.S. regulator opens door wider for Americans on mortgages | Reuters

Reply With Quote


futures io > > > > U.S. regulator opens door wider for Americans on mortgages

Thread Tools Search this Thread
Search this Thread:

Advanced Search

Upcoming Webinars and Events (4:30PM ET unless noted)

Wyckoff Hunting for Great Risk/Reward Ratio w/Gary Fullett

Elite only

Digging into the Details of iSystems w/Stage 5 & iSystems

Jun 5

Similar Threads
Thread Thread Starter Forum Replies Last Post
Tesla Loss Is Wider Than Expected; Revenue Beats Quick Summary News and Current Events 0 February 20th, 2013 05:50 PM
The ECB Opens The Door To Debt Forgiveness kbit News and Current Events 0 February 8th, 2012 07:30 PM
Justice Department Opens a Door on Online Gambling Quick Summary News and Current Events 0 December 25th, 2011 10:00 AM
Aircraft Carrier CVN-77 Parks Next Door To Syria Just As US Urges Americans To Leave Quick Summary News and Current Events 0 November 23rd, 2011 02:30 PM
Regulator sues Goldman Sachs over risky mortgages kbit News and Current Events 0 August 9th, 2011 07:45 PM

All times are GMT -4. The time now is 06:21 AM.

Copyright © 2018 by futures io, s.a., Av Ricardo J. Alfaro, Century Tower, Panama, +507 833-9432, info@futures.io
All information is for educational use only and is not investment advice.
There is a substantial risk of loss in trading commodity futures, stocks, options and foreign exchange products. Past performance is not indicative of future results.
no new posts
Page generated 2018-05-22 in 0.09 seconds with 19 queries on phoenix via your IP