Despite asking the federal government to close a $4.57 billion gap in its budget in February, Fannie Mae today announced a $2.7 billion profit in the first three months of 2012. In addition, Reuters reported, Fannie would not require more taxpayer aid to stay afloat. [more]

If you’re one of the estimated 11 million homeowners burdened with an underwater mortgage, a new federal policy change could be good news: Starting in June, when you want to do a short sale to shed your mortgage debt load and avoid foreclosure, you may not have to wait for months to hear back from your bank when you submit an offer from a potential purchaser. [more]

From the April issue: The Obama administration’s new plan to stimulate refinancings of FHA mortgages is likely to help large numbers of homeowners cut their monthly costs — even those who are deeply underwater. But it’s also likely to be a disappointment to many borrowers who aren’t aware of the program’s fine print and end up missing an opportunity to switch into a loan with a rate below 4 percent. [more]

From left: the White House and Edward DeMarco, head of the FHFA

Democrats’ efforts to reduce mortgage principals for hundreds of thousands of borrowers are stymied by one man, ProPublica claimed: Edward DeMarco, head of the Federal Housing Finance Agency. [more]

From left: Fannie Mae CEO Michael Williams and Freddie Mac CEO Ed Haldeman

A dozen housing executives are about to take a massive paycut.

The Associated Press reported that the salaries of the top 70 employees at Fannie Mae and Freddie Mac will be limited to $500,000 per year and bonuses will be eliminated. In 2009 and 2010 the top 12 executives at the government-sponsored enterprises collectively earned $35.4 million in bonuses and salary, with Fannie CEO Michael Williams and Freddie CEO Edward Haldeman receiving $9.3 million and $7.8 million, respectively, for the two-year stretch. [more]

Fannie Mae is asking the federal government to close a $4.57 billion gap in its budget, Yahoo News and other outlets reported.

Fannie Mae lost $2.41 billion in the fourth quarter of 2011, due to declining home prices, the government-sponsored enterprise said in an announcement today. [more]

From left: California Attorney General Kamala Harris and Edward DeMarco, acting director of FHFA

California Attorney General Kamala Harris is putting pressure on Fannie Mae and Freddie Mac to ramp up their effort to reduce principals for underwater borrowers, the New York Times reports.

In a letter last Friday to Edward DeMarco, the acting director of the Federal Housing Finance Agency, which is the regulator in charge of Fannie and Freddie, Harris asked that foreclosures be suspended until his agency is finished with their review of their current policy, which forbids debt reduction for delinquent homeowners who owe more than their home is worth. [more]

Fannie Mae has begun the first phase of an initiative to fix the U.S. housing market wherein it will sell foreclosed properties to investors, the Wall Street Journal reported.

The Federal Housing Finance Agency released the details of the program today, including that investors will have to buy the properties in bulk and be required to rent them out, the Journal said. [more]

From left: Jonathan Plutzik, wife Lesley Goldwasser and their townhouse at 312 102nd Street

Fannie Mae is frequently involved in residential property deals, but usually not in such a direct way.

The sellers of an Upper West Side townhouse that made the list of the most expensive deals of last week, is Jonathan Plutzik, who sits on the board of directors of the government-sponsored mortgage giant, and Lesley Goldwasser, his wife and business partner in various ventures, The Real Deal has learned. [more]

The Federal Housing Finance Agency has proposed replacing the mortgage-backed securities that Fannie Mae and Freddie Mac currently issue with a uniform security in a strategic plan it sent to Congress and the Obama administration, the Wall Street Journal reported.

The switch would mark a major change for both companies, and according to the FHFA paper, would be a public utility that could outlast the government-sponsored enterprises.  [more]