Fannie Mae, Freddie Mac to Share More Data

Fannie Mae and Freddie Mac, the largest U.S. mortgage financiers, said Monday that they will share more information about loans they package as securities for investors, after a series of similar government proposals.

Regulators said the shareholder-owned but congressionally chartered companies could provide more data to investors about their mortgage-backed securities without disrupting mortgage markets.

The government studied the issue after members of Congress expressed concerns that the home loan buyers were not subject to the same disclosure requirements as other companies.

Regulators found no evidence to support charges by industry rivals that the government-sponsored enterprises, so called because of their charter-derived benefits, were unfairly using their knowledge of individual mortgages to keep for their own portfolios securities with the least risk of paying off early, and selling less desirable loans to investors.

After the release of the government study, Fannie Mae and Freddie Mac said they would follow recommendations to provide more information about down payment size, whether loans were to buy homes or to refinance an existing mortgage, and borrower credit scores.

Lawmakers and industry rivals were not satisfied with the outcome of the study. Rep. Edward J. Markey (D-Mass.), who sought greater disclosure from the two mortgage finance companies, said the report underscored the need for more information about the companies’ finances.

Fannie Mae shares rose 19 cents to $64.89 in New York Stock Exchange trading. Freddie Mac gained 22 cents to $56.20 on the NYSE.