NEW YORK (TheStreet) — Four years on, banks are still seeing increases in mortgage putback demands that are again pressuring shares following the recent Moody’s debt downgrade.
A more aggressive stance on mortgage repurchase demands by Fannie Mae and Freddie Mac — the two government-sponsored mortgage giants, or GSEs, that were taken under government conservatorship in September 2008 — is prolonging the mortgage mess for several of the nation’s largest lenders, which are taking their time about settling the GSE putbacks.
Freddie Mac Freddie Mac reported that as of March 31, its outstanding mortgage loan repurchase requests — based on unpaid principal balances (UPB) — totaled $3.229 billion, increasing from $2.716 billion at the end of 2011. That’s a 19% increase over just three months. …
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Read the original: Bank Stocks Reinfected With Mortgage Putback Worries