SEC charges former execs of Fannie, Freddie
The Securities and Exchange Commission charged six former executives of Fannie Mae and Freddie Mac with securities fraud on Friday for misrepresenting their holdings of high-risk mortgage loans.
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January 10, 2012
Fannie Mae CEO to resign
Fannie Mae CEO Michael Williams plans to resign, the government-controlled mortgage giant said Tuesday. Williams, who took over as president and CEO of the troubled company in 2009, will continue as CEO until Fannie Mae's board names a successor. The firm did not provide a specific reason for Williams' departure; in a statement, Williams said only that he had decided that "the time is right to turn over the reins to a new leader." Williams will leave behind a firm still struggling to get its finances in order. In November, Fannie Mae reported a net third-quarter loss of $5.1 billion. The loss forced the firm to ask for another $7.8 billion in funding from the Treasury Department, a request that took its bailout total to $112.6 billion. Federal regulators put Fannie Mae and fellow government-sponsored enterprise Freddie Mac into conservatorship during the financial meltdown in September 2008. The sister companies now depend on government help to cover losses on the mortgages they own or guarantee. In October, Freddie Mac CEO Ed Haldeman also announced plans to step down at some point this year. Williams and Haldeman have faced scrutiny in recent months for their hefty paychecks, granted even as their firms rely on taxpayer support. The targets for their 2011 pay, which will include deferred compensation, are set at about $6 million a piece. In December, the Securities and Exchange Commission charged six former executives of Fannie Mae and Freddie Mac, including former Fannie CEO Daniel Mudd and former Freddie chief Richard Syron with securities fraud. The SEC alleges that the executives misrepresented the firms' holdings of high-risk mortgage loans ahead of the financial crisis.
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January 10, 2012
High-yield mortgage REITs: Too good to be true?
As bond, CD, and money market interest rates remain mired at rock-bottom levels, investors continue their quest for dividends. One category offers eye-popping yields: mortgage real estate investment trusts, or mREITs (which are required to pass most of their income to shareholders via dividends). Chimera Investment and American Capital Agency each yield more than 19%. And the largest mREIT, Annaly Capital Management -- which we've recommended before -- offers a 15% payout. Are these returns too good to be true?
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January 10, 2012
Turning foreclosures into rentals
Federal officials hope to launch a pilot program in early 2012 to convert government-owned foreclosures into rental properties.
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January 07, 2012
Applying Good Design to Kids' Rooms
Steer clear of "kid" furniture and fabrics, says Living Well columnist Rita Konig. Go for small, sophisticated prints and a mix of antiques and IKEA basics.
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January 07, 2012
Washington, D.C. leads U.S. in attracting new residents
Among those who moved last year, the nation's capital was once again the most popular destination.
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January 04, 2012
Manhattan home prices fall in final months of 2011
Despite a number of multi-million dollar home sales, including a record-setting $88 million penthouse deal in December, Manhattan real estate prices fell significantly during the final months of 2011.
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January 03, 2012
Bailout concerns mounting for federal housing agency
Concerns are growing that the Federal Housing Administration will need to be bailed out by taxpayers.
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January 02, 2012
FHA says: Flip that house
Flippers, the real estate investors who buy homes on the cheap and quickly resell them at a profit, just got a reprieve from the Federal Housing Administration.
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January 01, 2012
Foreclosure free ride
Delinquent borrowers facing foreclosure are learning that they can stay in their homes for years, as long as they're willing to put up a fight.
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