-
Bank of America Corp., once the nation's largest residential mortgage lender, has dropped to third place, defeating the original purpose of its ill-fated takeover of Countrywide Financial Corp.
October 19 -
Fannie Mae, in a quarterly filing, says it is receiving "higher amounts" from lenders on loan repurchase requests while its pipeline of buyback claims on defaulted mortgages expands.
August 9 -
Freddie Mac relied on a botched loan review process for key data used to justify its landmark settlement with Bank of America, the FHFA's inspector general has concluded.
September 27
Shares of SunTrust Banks Inc. fell more than 6% Tuesday after the company's chief executive said that he expects costs associated with repurchasing soured mortgage loans to increase in the fourth quarter.
The Atlanta company spent roughly $440 million buying back problem loans from Fannie Mae and Freddie Mac last quarter, up 67% from the same period last year, and CEO Bill Rogers said at an investor conference that repurchase costs this quarter will be "well above" those of previous periods.
Fannie and Freddie are increasingly demanding that lenders buy back loans made during the housing boom and later packaged into securities that they claim did not comply with their standards for acquiring loans. Speaking to analysts and investors gathered at the New York conference hosted by Goldman Sachs Group Inc., Roger said that the increase in buyback requests has become a "volatile" issue between lenders and the government-sponsored enterprises.
"This is a frustrating process and one that's increasingly difficult to predict," Rogers said.
SunTrust's shares closed at $18.04.
