In a new annual letter to shareholders, Fairholme Capital Management once again lays out its argument for investing in Fannie Mae and Freddie Mac stock, trying to explain to its wealthy investors that it feels more secure in owning junior preferred shares than common stock. Among other things, Fairholme said the preferred stock “provide(s) us with greater security and certainty than the common stock and, as you know, we are not speculators.” When it comes to a liquidation preference, preferred shareholders are senior to common shareholders, who often receive nothing when a company goes bust. But Fairholme’s problem – one shared by other firms that still own this class of stock – is...

The CFPB said Prospect Mortgage entered into agreements to buy leads from more than 200 different counterparties, most of which were real estate brokers.

HUD officials said the agency has been focused on establishing an infrastructure to improve its cost estimating practices.

The DTAs are available to the GSEs as future deductions against taxable income. A reduction in the corporate tax rate would reduce existing DTAs for not just Fannie and Freddie but for other U.S. businesses as well.

The full Senate could vote on the Ben Carson nomination next week...

The Fed LO survey does not include sentiments expressed by loan officers and account executives who work at nonbanks…

Correspondent lending accounts for 21.4 percent of Stearns’ total origination volume, based on fourth quarter figures from Inside Mortgage Finance…

Nondepositories now dominate FHA production after several large banks exited the government program due to growing concern over potential liability arising from federal lawsuits…

What? Democrats won't help in changing the Dodd-Frank Act?

SFIG noted that a complete repeal of risk-retention requirements “is likely neither appropriate nor probable.”