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Michael Williams gives notice as Fannie Mae CEO

January 16, 2012

Michael Williams gives notice as Fannie Mae CEO

The executive who was appointed to lead mortgage giant Fannie Mae in 2009 after the federal government seized the company plans to step down as its CEO.

Michael Williams announced last Tuesday he will continue as CEO and as a director until a successor is found.

“I decided the time is right to turn over the reins to a new leader,” he said in a statement. Williams, 53, has been a Fannie employee since 1991.

The government rescued Fannie Mae and Freddie Mac in September 2008 after the two mortgage firms absorbed huge losses on risky loans that threatened to topple them.

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Some familiar names seek to rent out foreclosed homes

January 9, 2012

Some familiar names seek to rent out foreclosed homes

Fortress Investment Group and Deutsche Bank, whose executives played roles in the housing bubble, are among the hundreds of firms that responded to a U.S. government request for proposals to rent out foreclosed homes.

The Federal Housing Finance Agency (FHFA) asked for ideas as Fannie Mae and Freddie Mac, the mortgage companies seized by the government in 2008, seek to reduce losses, stabilize neighborhoods and support housing values by turning into rentals a portion of the more than 180,000 repossessed homes in their inventory. The submissions were due by Sept. 15.

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BofA in record settlement with US over bias case

December 21, 2011

BofA in record settlement with US over bias case

Bank of America Corp’s Countrywide Financial unit agreed on Wednesday to pay a record $335 million to settle civil charges that it discriminated against minority homebuyers, a historic settlement for the Obama administration in the wake of the subprime mortgage morass.

As the financial crisis was building in 2008, Bank of America bought Countrywide, which specialized in so-called subprime mortgages, focusing on loans to those with lower credit ratings and charging them higher interest rates.

The settlement covers conduct between 2004 and 2008 before the acquisition by Bank of America, and involves a range of alleged wrongdoing including charging African-Americans and Hispanics higher interest rates and fees and steering some to more expensive subprime mortgages.

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Mortgage servicers making progress on fixing bad foreclosures

November 28, 2011

Mortgage servicers making progress on fixing bad foreclosures

Banks and mortgage servicers are making progress in improving their processes and contacting homeowners hurt by invalid or flawed foreclosures, the Office of the U.S. Comptroller of the Currency (OCC) reported.

The regulator released an interim report Tuesday on actions taken by 12 banks and servicers to comply with April consent orders that require them to correct deficient and unsound foreclosure practices.

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Freddie Mac seeks $6 billion more in aid

November 3, 2011

Freddie Mac seeks $6 billion more in aid

“Government-controlled mortgage giant Freddie Mac has requested $6 billion in additional aid after posting a wider loss in the third quarter.

Freddie Mac said Thursday that it lost $6 billion, or $1.86 per share, in the July-September quarter. That compares with a loss of $4.1 billion, or $1.25 a share, in the same quarter of 2010…

Freddie’s losses are increasing mainly for two reasons: Many homeowners are paying less interest because they are able to refinance at lower mortgage rates. And failing and bankrupt mortgage insurers are not paying out as much money when homeowners default.”

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