Mortgage giant Fannie Mae (OTC: FNMA) today announced that it will demand compensation from mortgage servicing companies that do not handle problem mortgage loans properly. Fannie also said that it may start reviewing loan files, processes and procedures used by mortgage servicing companies.
The announcement from Fannie shows that it getting impatient with the companies engaged in the collection and distribution of homeowners’ payments. Mortgage servicers are coming under heavy criticism for the way they handled record delinquencies and foreclosures.
It may be recalled that Fannie Mae was on the verge of collapse in 2008, after suffering losses related to subprime mortgages. Since then, the company has come under government control. However, the mortgage giant is still struggling to get back on its feet. The role of Fannie and Freddie Mac (OTC: FMCC) has been questioned by Ben Bernanke, the Chairman of the Federal Reserve. A few weeks ago, Bernanke said that the mortgage market could function without Fannie and Freddie.
In another development, the Federal Housing Finance Agency, Fannie Mae’s regulator, lowered its goals for both Fannie and Freddie to buy loans for some low-income properties. The regulator said that under the new requirement, at least 21% of its single-family loan purchases have to be for low-income properties. The agency earlier proposed 25% of its single-family loan purchases to be for low-income properties. The agency also lowered low-income and very low-income goals for multi-family properties.
With Fannie’s role in the mortgage market now being questions, its penny stock has taken a beating. The stock has been trading in the penny region since 2008, after the company came under government control. On July 8, 2010, the penny stock was delisted from the New York Stock Exchange (NYSE) after failing to comply with the exchange’s minimum requirement. Since then, the penny stock traded over-the-counter.
The penny stock of Fannie Mae has a 52-week range of $0.19-$1.86. The stock is currently trading below its 50-day and 200-day moving averages. The stock has a support level at $0.31 and a resistance level at $0.33. In the last one month, the penny stock gained 2.61%.
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