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Fannie and Freddie to register stock with SEC.

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USPAP Compliant

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Fannie, Freddie to Register Stock with SEC

(July 15) -- The two secondary mortgage market giants Fannie Mae and Freddie Mac have announced that they will register their common stock with the U.S. Securities and Exchange Commission, a move which would requires the companies to file quarterly and annual statements and proxies with the agency as other public companies do.

The government-sponsored entities won't register their debt-and-mortgage-backed securities with the SEC, though, despite the detailed information their competitors on Wall Street offer on their mortgage pools.

Many are concerned about this lack of disclosure because it conceals major market risks from investors, and allows the GSEs to choose the best mortgages for themselves. The absence of disclosure has also prompted investors to implement a risk premium in their pricing, thereby boosting interest rates for homebuyers.

Such disclosures, which would be required under legislation sponsored by Rep. Christopher Shays, R-Conn., and Rep. Edward Markey, D-Mass., would level the playing field, help investors understand the risks taken by the GSEs, make pricing more efficient, and protect taxpayers should Fannie and Freddie find themselves in financial straits.

Source: Wall Street Journal (07/15/02)
 

Don Clark

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Jan 17, 2002
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8)

Wonder who their accountant is :?:
 

Residential Appraisal Ser

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Jan 26, 2002
Bob: Fannie may register the stock but there will be nothing in the public information pretaining to MBS, Losses etc.
Fainnie feels that it is no ones business, that it is competive information. Ergo they could go bust and the public wouldn't know. Sound fimiliar.

Bill Sentner
AGA OPEIU AFL-CIO
[email protected]
 
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