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ATLANTA, April 19, 2012 /PRNewswire/ --
The Consumer Financial Protection Bureau?s new director compared some of the industry?s tactics to those of the subprime mortgage market.
Yields on Fannie Mae and Freddie Mac mortgage securities that guide home-loan rates tumbled relative to Treasuries after the Federal Reserve said it will reinvest proceeds from past purchases of housing debt into the bonds.
Subprime mortgage borrowers, it appears, are more creditworthy than Uncle Sam

US agency challenges Bank of America settlement

Posted by mortgage 266 days ago (Editorial)
A US government agency has objected to Bank of America's $8.5 billion settlement for losses on mortgage-backed securities, imperiling the bank's efforts to move beyond the subprime mess.
Yields on the home-loan bonds of the biggest U.S. mortgage companies Fannie Mae and Freddie Mac jumped to the highest relative to U.S. Treasuries in more than two years, after Standard & Poor?s cut the U.S. government?s AAA rating, paving the way for a downgrade of the firms.
Yields on the home-loan bonds of the biggest U.S. mortgage companies Fannie Mae and Freddie Mac jumped to the highest relative to U.S. Treasuries in more than two years, after Standard & Poor?s cut the U.S. government?s AAA rating, paving the way for a downgrade of the firms.
This would have been an appropriate heading for this article on S&P's decision to downgrade U.S. government debt. S&P gave investment grade rating to hundreds of billions of dollars of mortgage backed securities. They received tens of millions of dollars from the investment banks for these ratings.

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