Fannie Halts N.Y. Subprime Purchases
Fannie Mae has followed Freddie Mac's lead on New York subprime mortgages.

Fannie will no longer purchase or securitize loans on New York properties that are considered subprime under Senate Bill 8143-A, according to Announcement 08-21 released today.

The legislation, which was signed into law by Gov. David A Paterson on Aug. 2, requires a 90-day notice before foreclosure proceedings may be initiated and establishes a mandatory settlement conference for foreclosure proceedings involving some subprime borrowers.
read full story

Federal Regulators Busy
As reports of massive mortgage-related losses continue to pour in, federal regulators are busy investigating and issuing orders against financial firms. The ratings of Fannie Mae and Freddie Mac have been lowered.

Freddie to Stop Buying Some N.Y. Mortgages
A new mortgage law in New York has prompted Freddie Mac to quit buying some loans in that state.

Foreclosure Prevention Becomes More Lucrative
Following a similar move by Freddie Mac last month, Fannie Mae said it would increase incentives to servicers that successfully avert foreclosures.

Stiffer Underwriting at Banks
A new survey from the Federal Reserve indicated more banks continued to constrict mortgage guidelines. The report indicated the number of banks that make subprime loans has fallen by more than half during the past 12 months. Demand was weak for jumbo loans purchased by the government sponsored enterprises.

Another Blow to Battered Alt-A Market
Fannie Mae, which owns or guarantees more than $300 billion in Alt-A mortgages, said such loans are responsible for a disproportionate share of its losses -- leading to its decision to halt further Alt-A purchases. The move by Fannie is just another nail in the coffin of limited-documentation programs.

Freddie Raises Fees
Freddie Mac has followed the lead of its Washington, D.C.-based counterpart and raised its delivery fees.

Massive Losses, Legal Actions & 1 Done
Around $8.8 billion in mortgage-related losses were reported this week by U.S. firms, including Fannie Mae and Freddie Mac. Other recent corporate activity included the issuing of several orders against banks, the disclosure of a major securities investigation, the filing of another investor class action and a warning about liquidity from Residential Capital LLC.

Fannie Boosts Fees
Fannie Mae has increased some of its delivery fees and pricing adjustments.

Freddie Steps Up Foreclosure Prevention Fees
Freddie Mac is doubling the fees it pays to save mortgages from foreclosure.