Fannie Mae CEO Timothy Mayopoulos is setting the table for challenging times ahead, issuing caution about the GSE’s dwindling capital position…

Freddie Mac reported a net income of $4.85 billion in the fourth quarter, more than double its earnings from the previous quarter and lifting its full-year income to $7.82 billion. The government-sponsored enterprise released its earnings this week, posting one of its best profits ever in the fourth quarter. Net income for the quarter was fueled in part by gains on derivatives which amounted to $6.38 billion. “Interest rates went up an unusually large amount in the fourth quarter, therefore you saw an unusually large gain in the accounting,” Freddie CEO Donald Layton told Inside MBS & ABS. Freddie also reported...

One former Fannie Mae official told us that stellar profits posted by the two are “just about done.”

When Freddie makes that next “dividend” payment, its “account surplus” with Treasury will total $34.6 billion: federal assistance of $71.3 billion since September 2008 versus dividend payments of $105.9 billion.

The agency estimates there are 26 million Americans who are “credit invisibles...”

Over the past two years, PHH has lost $347 million, much of it caused by a private-label origination model that has fallen on hard times and rapidly declining interest rates…

In a few weeks, almost all of that profit will be swept into the coffers of the U.S. Treasury, which supported the GSE during its money losing years...

While most banks are running away from the business of servicing home mortgages, BB&T appears to like the space...

The main risks in making mortgages to foreign nationals: the borrower’s lack of credit history and issues tied to income verification.

The court also ordered that the three-judge panel’s ruling this past October be vacated. Oral arguments will be heard May 24...