Investors in Freddie (and Fannie Mae) common and preferred who bought their shares as a speculative investment are still wondering: Hey, when do we get some of that money?
In the past, the FHFA has shot down a couple of program myths and emphasized that being significantly underwater doesn’t disqualify borrowers from using HARP…
Next week, the GSEs will release 2Q results and all eyes will be on the line item that reveals the net gain or loss from their derivatives, the instruments the two use to hedge their MBS positions.
When rates plunge at the end of a given quarter – as they did in June – it usually translates into large hedging losses for Fannie Mae and Freddie Mac. But this time around, there seems to be less chatter about the topic – and a reduced level of anxiety. Next week, both government-sponsored enterprises will release second-quarter results and all eyes will be on the line item that reveals the net gain or loss from their derivatives, the instruments the two use to hedge their MBS positions. In the first quarter of this year, Freddie posted...