Study says mortgage firms receive subsidy

Article Abstract:

The Federal National Mortgage Assn and Federal Home Loan Mortgage Corp are not providing as much benefits as they could to home buyers considering the extensive support the two mortgage companies receive from the US government. This is what Congressional Budget Office (CBO) Dir Dan Crippen told a House panel on May 23, 2001. Crippen supported a new yearlong study that estimates the annual value of the two firms' special ties to the government at $10.7 billion. According to the CBO study, the companies benefit from their special standing through cheap borrowing and exemption from taxes and regulatory fees.

Government domestic functions, Administration of Housing Programs, Mortgage Financing & Insurance, Fannie Mae Corp., Freddie Mac

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New loan offers low rate now for piece of profit later

Article Abstract:

National Commerce Bank Services and investment banker Bear Stearns have entered into a partnership which covers the launching of Shared appreciation mortgage (SAM). SAM is a new loan product that offers discounts interest rates in return for the borrower forfeiting a portion of the future growth in the home's value. SAM is expected to appeal to firts-time buyers leveraging lower monthly payments into a more expensive home and to anyone seeking to divert money to non-house investments.

Investment Banking and Securities Dealing, Strategic alliances, Investment Banking, National Commerce Bank Services

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Mortgage lending abuses fall under scrutiny

Article Abstract:

US Housing and Urban Development Secretary Andrew Cuomo and Treasury Secretary Lawrence Summers has recommended the intervention of the federal government to curb the growing abuses in mortgage lending. They unveiled a list of proposals for congressional and regulatory action which include limiting loan-origination fees for high-cost loans, prohibiting loans made with no regard to income or assets and requiring proof from lenders that a high-cost loan is appropriate for the borrower.

Government regulation (cont)

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