If the $10.4 billion figure proves accurate it will result in another hefty dividend payment by Fannie and Freddie to the holder of its senior preferred stock: the U.S. Treasury.

Mel Watt called the credit score explorations one of the “most difficult” evaluations he’s taken on as FHFA director.

Fannie Mae and Freddie Mac are well aware of the issue and have leeway to replace LIBOR with another benchmark when the time comes, industry officials said.

S&P focused on mortgages originated between the second half of 2005 and the first half of 2008.

A higher dividend than what Fannie and Freddie pay?

The pronounced shift from refinance to purchase lending made for major changes in overall risk distribution during the second quarter.

Although Fannie and Freddie continue to earn money hand over fist, their common shares are probably worth just $1 a piece, according to a new research report…

Freddie Mac issued $2.11 billion of new Structured Agency Credit Risk notes, an impressive increase of 35.6 percent…

Fannie Mae and Freddie Mac earnings remained strong in the second quarter with the GSEs posting a combined $4.86 billion in net income, but concerns about the soon to be non-existent capital buffer also remain. The GSEs’ $9.85 billion in net income for the first half of the year more than doubled their combined earnings from the same time period in 2016, according to their second quarter earnings statements released last week. While Fannie posted a net income of $3.20 billion, a 15.4 percent quarterly improvement, Freddie witnessed a 24.7 percent decline to $1.66 billion in the second quarter.

Although Federal Housing Finance Agency Director Mel Watt is concerned about the GSE capital buffer falling to zero early next year, it appears he’s unlikely to take administrative action anytime soon to fix the situation. At least that’s the message conveyed in a new letter Watt penned to National Association of Realtors President William Brown. According to the Aug. 9 letter, Watt notes he’s “very concerned” about the issue because it “increases the probability of a draw which could cause an adverse market reaction.” The regulator adds: “However, I am sensitive to the prospect that whatever steps FHFA could take might be misperceived as either an effort...