Post by jeffolie on Aug 10, 2007 18:25:37 GMT -6
Regulator rejects Fannie loan request
Agency says the entity can't increase the limit of its portfolio.
U.S. agency rejects Fannie Mae's request for larger loan portfolio
Last Update: 5:47 PM ET Aug 10, 2007
By Damian Paletta Of DOW JONES NEWSWIRES
WASHINGTON (Dow Jones)--The Office of Federal Housing Enterprise Oversight said late Friday it would not allow Fannie Mae FNM66.46, +0.53, +0.8%) to increase its portfolio beyond the $727 billion limit created in May 2006, despite arguments by the company and senior Democrats that a change would provide much-needed stability to the shaky mortgage market.
The agency's announcement comes after a tense week of public posturing in Washington. Several major mortgage companies have complained about difficulty selling loans to investors, and Fannie Mae said it could pump liquidity into this area.
But President George W. Bush countered in two separate press conferences that any changes to regulatory policy should come only after Congress completes a reform package that overhauls the way Fannie Mae and Freddie Mac (FRE : Freddie Mac
News , chart , profile , more Last: 61.95+0.28+0.45%
Fannie Mae's portfolio was capped at $727 billion in May 2006, when the company was fined $400 million for massive accounting and management failures. Lockhart has said the cap will only be removed after Fannie Mae returns to timely reporting of its financial statements and makes other improvements in its internal controls. Fannie Mae has not yet filed timely reports, though Lockhart has said the company is making progress.
www.marketwatch.com/news/story/us-agency-rejects-fannie-maes/story.aspx?guid=%7B4E09B47F%2DBE57%2D438D%2D8673%2D3EC59DAE0DF2%7D
Agency says the entity can't increase the limit of its portfolio.
U.S. agency rejects Fannie Mae's request for larger loan portfolio
Last Update: 5:47 PM ET Aug 10, 2007
By Damian Paletta Of DOW JONES NEWSWIRES
WASHINGTON (Dow Jones)--The Office of Federal Housing Enterprise Oversight said late Friday it would not allow Fannie Mae FNM66.46, +0.53, +0.8%) to increase its portfolio beyond the $727 billion limit created in May 2006, despite arguments by the company and senior Democrats that a change would provide much-needed stability to the shaky mortgage market.
The agency's announcement comes after a tense week of public posturing in Washington. Several major mortgage companies have complained about difficulty selling loans to investors, and Fannie Mae said it could pump liquidity into this area.
But President George W. Bush countered in two separate press conferences that any changes to regulatory policy should come only after Congress completes a reform package that overhauls the way Fannie Mae and Freddie Mac (FRE : Freddie Mac
News , chart , profile , more Last: 61.95+0.28+0.45%
Fannie Mae's portfolio was capped at $727 billion in May 2006, when the company was fined $400 million for massive accounting and management failures. Lockhart has said the cap will only be removed after Fannie Mae returns to timely reporting of its financial statements and makes other improvements in its internal controls. Fannie Mae has not yet filed timely reports, though Lockhart has said the company is making progress.
www.marketwatch.com/news/story/us-agency-rejects-fannie-maes/story.aspx?guid=%7B4E09B47F%2DBE57%2D438D%2D8673%2D3EC59DAE0DF2%7D