An overhaul of Fannie Mae and Freddie Mac is highly unlikely to make it into this year's legislative calendar, Congressional staffers say, possibly shifting the new administration's immediate focus to allowing the mortgage financing institutions' to rebuild depleted capital.
Fannie Mae fell 1 percent to $2.95 at 9:35 a.m. in New York, after dropping 25 percent from mid-August through last week. Freddie Mac slipped 2 percent today.
Washington-based Fannie Mae, which has operated under federal conservatorship since 2008, had net income of $5.3 billion for the three months ended March 31, according to a regulatory filing today.
Wells Fargo & Co., the largest U.S. home lender, agreed to pay Fannie Mae $591 million to resolve repurchase demands on loans originated before 2009 and sold to the government-backed firm.
Fannie Mae sued nine major banks over allegations their manipulation of the London interbank offered rate cost the mortgage financing company about $800 million.
More jobs and easier loan terms will boost demand for new mortgages in the second half of this year as homebuyers shrug off higher interest rates, according to a Fannie Mae forecast issued today.
