
	Saturday July 19, 2008

26,235 Active Members Register

Welcome, Guest Sign In

Home

Latest Headlines

Popular Stories

Bookmark Us

Reader Comments

SUBSCRIBE

SEARCH OUR SITE


30 Yr Fix	6.37%	0.02%
15 Yr Fix	5.91%	-0.01%
1 Yr ARM	5.17%	0.00%
5/1 ARM	5.82%	0.04%
30 Yr Tres	4.47%	-0.05%
Fed Prime	5.00%	-0.25%
Mortgage Rates \| Blog

MND Features

-	Wiki
-	Video News
-	Mortgage License Information
-	Real Estate License Information
-	Mortgage Content Syndication
-	Mortgage Fraud
-	Housing Bubble

News Archives

Submit A News Tip
or Story Idea

Free Subscription To News Alerts
Stay up to date on breaking news with our free News Alert Service.

Fannie Mae Holds Dividend At Reduced Q1 Rate

3027 Views - Printer Friendly - Email This Story To A Friend

ADD NEWS TO YOUR WEBSITE

Fannie Mae declared a second quarter dividend on its common stock Tuesday, holding to the $0.26 per share that it declared for the first quarter back in December 2004.

This number is only notable because the first quarter dividend was exactly half what stockholders had come to expect in previous quarters. The slash in payments came about after the mortgage giant had been ordered by its regulators to increase capitalization by $9 to $12.5 billion, depending on which expert one listens to.

At that time the value of Fannie Mae stock (FNM) fell from around $70 per share - a price that was already reflecting the corporation's woes - to under $68. The closing price on April 20 was $53.27.

Richard Syron, CEO of Freddie Mac and Daniel Mudd, Acting CEO of Fannie Mae were scheduled to testify before the Senate Banking Committee on Wednesday. There has been much pressure from members of Congress, Federal Reserve Chairman Alan Greenspan, U.S. Treasury Secretary John W. Snow, and others to drastically limit the total value of mortgages that the two corporations are allowed to carry in their own portfolios.

In prepared testimony released to the press prior to the hearings both CEOs disagreed with their critics. The two cautioned against such "arbitrary" limitations, warning that they could impact the availability of long-term, fixed-rate mortgages. Mudd also cautioned that such a move might have adverse effects on interest rates and influence the placement of foreign investment dollars in the U.S. housing market.

Mudd, however, did agree that legislation attempting to reform the two corporations should include the creation of a strong regulator with power to approve or disapprove corporation initiatives and have control over Freddie and Fannie in the event of further financial problems.

Story Views: 3027 | Permalink

Story Tools

Email This Story To A Friend

Subscribe To News Alerts

Related Tags

Select a Tag for more information related to that Tag. (View All Tags)

Comments (0)

No Comments At This Time

Post A Comment

Please fill out the form below to submit a comment.

Name:
(Required - Type Anonymous or Use First Name Only if Private)

Email Address:
(Not Required So No Fake Emails Please.)

URL or Weblog:
(Leave Blank If You Don't Have One - Use http://)

Comments:
(Please keep comments on topic. No HTML Allowed. No Advertisng.)
Please Note: Due to Comment Spam, all comments are reviewed by hand. Most comments will appear shortly after submission but it may take up to 12 hours to appear. If you would like to come back, click here to Bookmark the page.
PLEASE DO NOT USE ALL CAPS

Character Count = (5000 Character Limit)

If you would like to leave a longer comment, please submit your comments in 5000 character increments and we will merge your comments.

Notify me via email when my comment is approved.

Note: Please don't bother spamming. All submissions are reviewed by our our editorial staff. Comment spam and irrelevant links will not be approved.

Trump Talks Economy, Oil and Real Estate

New Evidence of Deceptive Practices at Countrywide

Reader Comments (More)

I don't want to be pesimistic, but the financial disaster is bigger than all of us can imagine and it will continue to get worse i...
Read

I believe that lending is a two way street. The lenders obviously failed some of the borrowers out there, but over 90% of mortgage...
Read

There is enough blame for everyone in the housing crisis. The borrowers should understand what they are getting into - ignorace is...
Read

Home - Contact - Sitemap - Disclaimer - Privacy Statement - Advertising

All Content Copyright © 2003 - 2008 Brown House Media, Inc. All Rights Reserved.
Reproduction in whole or in part in any form without the express written permission of MortgageNewsDaily.com is prohibited.