Review Mortgage Lenders

Fannie Mae

Fannie Mae-Buster Brown

US R&B Chart #1 Hit in 1960, this song belongs to Buster Brown.

Fannie Mae helps the market take another step away from Libor

More than 85% of the securities went to funds with the 2a7 Securities and Exchange Commission designation, which indicates they put their money into investments the SEC considers to be conservative. The remaining 15% went to other fund managers, state and local government funds, investors from the insurance industry or the GSE sector, and commercial banks, among others.

"With this milestone, our objective is to accelerate the development of the SOFR market and we encourage other issuers in the debt markets to follow," Nadine Bates, senior vice president and treasurer of Fannie Mae, said in a press release.

Lenders will need to find an alternative to Libor for their adjustable-rate mortgages, and retool their systems to accommodate it , because it will be phased out by 2021.

Libor is being phased out because it has been based on a shrinking amount of bank activity involving wholesale deposits and short-term commercial paper notes, and been subject to manipulation.

Fannie Mae board member Frater selected as interim CEO

"We are excited to have an executive with such broad experience and impressive track record as our new interim CEO," Fannie Mae Chairman Egbert Perry said in the company's statement. "Hugh has a deep understanding of the housing and the financial services industries, and his experience on our board makes him an ideal choice."

Mayopoulos said in July that he planned to step down by the end of the year, creating a potential vacancy atop a government-controlled company that is central to the U.S. housing system. Fannie Mae said at the time that it would conduct a search for a successor to Mayopoulos, who had led the company since 2012. He will leave the company on Oct. 15 and Frater will take over the following day, the company said Monday.

One potential hurdle to finding a replacement for Mayopoulos is that Congress in 2015 capped pay for the CEOs of Fannie and Freddie Mac at $600,000 a year. Lawmakers did so after the companies' regulator, the Federal Housing Finance Agency, approved raises that would have increased compensation to about $4 million annually.

Fannie Mae?

What is the difference between Fannie Mae and Freddie Mac in terms of their purposes and in terms of the assets they hold? Are these two essentially identical?

The main difference is how they came about. Freddie Mac is the result of the S&L bailout during the 80s. Fannie Mae's inception dates back to the time of the New Deal. They both, I believe, operate in a similar fashion.