Fannie Mae is snatching potential profits away from mortgage lenders as it posts record earnings that are fueling industry concern the government-backed company is regaining its swagger even as lawmakers plot its demise.
Ellington Management Group LLC, the $5.5 billion investment firm founded by Michael Vranos that specializes in mortgage-backed bonds, hired Steven Abreu from GMAC Mortgage to start an origination business.
Yields on Fannie Mae and Freddie Mac mortgage bonds that guide U.S. home-loan rates climbed to the highest in almost a year as Federal Reserve Chairman Ben S. Bernanke told Congress the central bank may cut the pace of bond purchases in the “next few meetings.”
Stonegate Mortgage Corp., the closely held lender that originated almost twice as much debt last quarter as in all of 2011, sold $115 million of common shares in a private offering to continue its expansion.
Fannie Mae plans to sell $2 billion of commercial-mortgage bonds issued before the credit market seizure as it seeks to reduce holdings of illiquid assets, according to three people familiar with the offering.