Page 4 - Michael Devito News Today

Mortgage giants delivers Q3 financial results

The government-sponsored enterprise put more money aside as mortgage interest rates rise and home prices start to decline.

Fannie and Freddie remain profitable but are setting aside pots of money to cover future losses that could result from falling home prices.

Fannie Mae announced a pilot rollout of a new special-purpose credit program, while Freddie Mac said it is expediting review of similar new programs from lenders during the Mortgage Bankers Association conference this week.

Freddie Mac's new program encourages property owners to report timely payments to major credit bureaus.

An expanding federal initiative to create more affordable rental housing has already achieved some success in Tulsa, officials said Monday.

"Deterioration in forecasted economic conditions" has an impact on results

Like its sister company, Freddie, Fannie Mae remained profitable in Q2 despite pressure from inflation, rising interest rates and worsening affordability.

The mortgage giant generated a $2.5 billion profit and grew its mortgage portfolio by 14 percent despite dramatic declines in new purchase loans and refinancing.

New technology and policy changes at Fannie Mae and Freddie Mac spur innovations by Guild Mortgage and Ready Life to help borrowers without credit scores and good payment histories.