Freddie Mac’s $354 million first-quarter net loss should signal new alarms, according to housing and mortgage leaders.
The Hill reporter Vicki Needham digs into the latest call for housing finance reform after the government-sponsored enterprise's earnings report.
The Independent Community Bankers of America called on Federal Housing Finance Agency Director Mel Watt and Treasury Secretary Jack Lew to require Fannie Mae and Freddie Mac to rebuild their capital buffers to avoid another bailout, according to Needham. She writes:
There has been growing concern among congressional lawmakers and industry experts that falling profits for two agencies could put taxpayers back on the hook for future losses that exceed Fannie's and Freddie's capital buffers.