Fannie Mae Considers Selling US$1 Billion Worth of Home Mortgage Bonds

By IVCPOST Staff Reporter

Jul 09, 2013 02:51 PM EDT

The mortgage financier regulated by the US government, Fannie Mae, planned to sell around US$1 billion of home-loan bonds. It would engage in the said sale without the backing of US from its holdings.

On July 11, Fannie Mae offered its non-agency securities from its tranche in an auction. The Washington-headquartered business owned approximately US$36 billion of the debt from December 31 last year. This was just half of the amount of Freddie Mac, its smaller equivalent. Freddie Mac also held the same auction in May. The corporation wanted to lessen its harder-to-trade assets.

In March, Fannie Mae and Freddie Mac's administrators were asked by Federal Housing Finance Agency to sell at least 5% of their illiquid stocks within the year. These stocks were different from Fannie Mae's securities on U$2.8 trillion of debt that was kept mainly by others.

"We are working with FHFA to meet the goals of the conservatorship scorecard for 2013," a spokesperson for Fannie Mae, Andrew Wilson, stated in a telephone interview.

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