All articles tagged with #fannie mae
Fannie Mae fired at least 10 senior executives in a three‑hour purge at its Washington, D.C. headquarters, with AI cited as taking on more work and affecting leaders across multifamily, capital markets, and regulatory affairs. The move follows a broader pattern of turnover at the GSEs, including a CEO transition and large 2025 job cuts, and comes as the company projects a weaker mortgage market through 2026–27.
President Trump says acting Director of National Intelligence Bill Pulte will not be appointed permanently and will continue to lead the FHFA and chair Fannie Mae/Freddie Mac in a short-term acting capacity while the search for a long-term DNI continues, as critics on Capitol Hill question his lack of intelligence experience; the move follows controversy around Tulsi Gabbard and ongoing DNI deliberations.
Mortgage rates surged 0.75 percentage points to about 6.75% for the 30-year fixed as the bond market sold off in early trading; mortgage-backed bonds have held up better than Treasuries thanks to demand from Fannie Mae and Freddie Mac, but the move is the sharpest since late 2024 and marks a new high since before the Iran war began.
FHA will allow VantageScore 4.0 and FICO 10T for insured mortgages, and Fannie Mae and Freddie Mac are updating guides to accept the new scores, a move aimed at lowering costs and broadening access to homeownership through greater competition in government-backed housing finance.
Opendoor is acquiring part of Doma, with 85 Doma employees joining Opendoor, to automate closings (title, escrow, underwriting) and reduce refinance costs. Doma’s tech supports a Fannie Mae pilot extended through 2027 that allows certain low‑risk refinances to skip lender’s title insurance. Closing costs beyond title remain, and refinancing demand has fallen as mortgage rates rise amid geopolitical tensions. Opendoor projects roughly $1,100 saved per refi and aims to grow its closing-services share even if total refis shrink.
Ackman argues that high-quality stocks are trading at attractive discounts and flags Fannie Mae and Freddie Mac as potential 10x upside; Michael Burry agrees with the bullish view as both bet on a market bargain amid volatility and evolving post-crisis policy dynamics.
Billionaire investor Bill Ackman says the Middle East conflict is bullish for equities and urges investors to buy quality, pointing to Fannie Mae and Freddie Mac trading near lows with 10x upside potential.
Fannie Mae will start accepting crypto-backed mortgages through a Better Home & Finance and Coinbase product, allowing borrowers to pledge crypto as collateral for a second loan to cover the down payment while the crypto remains in custody and cannot be traded; although borrowers incur two loan payments, the program offers potentially lower rates and no private mortgage insurance on the second loan, signaling a first compliant step toward tokenized-asset financing in real estate.
The White House touts a housing-market upturn under President Trump, citing Freddie Mac data that mortgage rates are at a multi-year low and affordability is improving, with rising refinance activity and demand for home purchases. Rents have declined, and starts are up, while policy moves—such as $200 billion in mortgage-backed-securities purchases, limiting large investors in single-family homes, barring certain non-citizens from taxpayer-backed loans, and rolling back the Affirmatively Furthering Fair Housing rule—are framed as expanding access to homeownership and lowering costs for American families.
Fannie Mae released an advertisement that uses a synthetic AI voice resembling Donald Trump, created with his permission, underscoring how AI-generated voices are increasingly used in corporate advertising.
Trump is pushing to lower consumer borrowing costs outside the Federal Reserve by directing Fannie Mae and Freddie Mac to use their balance sheets to buy $200 billion in mortgage bonds to press mortgage rates downward and proposing a one-year cap of 10% on credit-card interest. The moves aim to ease affordability without legislation or new regulations, but economists warn they could backfire or slow the economy even if mortgage rates dip below 6%.
President Trump says his representatives will buy about $200 billion in mortgage bonds to push down mortgage rates and make home buying more affordable, funded from liquidity on Fannie Mae and Freddie Mac’s balance sheets rather than Fed/Treasury money. FHFA Director Bill Pulte said the two agencies can execute the purchases, noting liquidity exists even though their reported cash on Q3 filings was under $17 billion, with higher liquidity implied by assets like securities repurchases. The plan’s potential impact is likely modest compared with the Fed’s QE, possibly cutting rates by roughly 10–15 basis points, and timeline details were not disclosed. Trump also signaled more housing initiatives for Davos and has floated limiting institutional single-family home purchases.
Pulte reassures that their mortgage underwriting is secure and criticizes concerns about Fannie Mae and Freddie Mac's liquidity, while also addressing political allegations related to mortgage fraud referrals against various politicians.
President Trump ordered Fannie Mae and Freddie Mac to buy $200 billion of mortgage bonds, marking a significant assertion of executive power in financial markets and potentially influencing mortgage rates, while raising concerns about political interference in traditionally independent monetary policy.
Mortgage rates have been relatively stable but could decrease below 6% if government mortgage agencies buy $200 billion in bonds, with current averages around 6.16% for 30-year fixed mortgages. Experts predict rates will stay near these levels through 2026 and into 2027, with some variation depending on economic factors.