Mortgage Resolution Partners LLC, the firm pushing municipalities to seize loans for borrowers owing more than their homes’ values, said it would expand its proposed program to include delinquent and defaulted debt.
The Federal Home Loan Banks, the government-chartered cooperatives owned by U.S. financial companies, are selling $500 million of securities linked to mortgage-bond prepayments, the system's first offering of such debt in almost two years.
Never underestimate the government’s capacity for incompetence when it comes to overseeing large financial institutions. The latest example: an ill-advised consulting contract between Freddie Mac’s outside auditor and the federal agency in charge of running the company.
The U.S. Federal Home Loan Banks’ unsecured lending to foreign institutions skyrocketed last year as the European sovereign debt crisis intensified, raising concerns about their risk management, an auditor’s report said today.
The U.S. regulator overseeing Fannie Mae, Freddie Mac and the Federal Home Loan Banks has hired a consulting firm to create contingency plans for taking the mortgage-finance firms into receivership, according to contract documents.
The Federal Home Loan Banks plan to set aside some earnings to supplement their normal capital once payments they’ve been making to offset the cost of the savings- and-loan crisis of the 1980s are no longer required.