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UPDATE 1-White House leaves door open on housing rescue
Reuters: [2008-05-09 21:38:00]
(Adds FHA Secure announcement)
By Kevin Drawbaugh
WASHINGTON, May 9 (Reuters) - The White House on Friday set out terms for a possible deal on a housing market rescue plan, as a sweeping package backed by the House of Representatives was on its way to an uncertain greeting in the Senate.
The House approved a package of bills on Thursday that would let the Federal Housing Administration offer $300 billion in new guarantees to refinance the mortgages of an estimated 500,000 distressed borrowers.
The Bush administration, which has threatened to veto the legislation, said taxpayers should not have to pay for the new lending program, which the Congressional Budget Office estimates would cost taxpayers up to $2.7 billion.
"The FHA should be self-financing and not provide a subsidy from taxpayers. Taxpayers shouldn't be taking on the risk of foreclosure, and that means that underwriting standards should be sound," said White House spokesman Tony Fratto.
The House package also proposed new tax credits for homeowners and billions of dollars in loans and grants intended to help stabilize the slumping housing market.
The Senate Banking Committee had been expected to take up housing legislation on Tuesday. An aide said that was no longer scheduled, but the committee was aiming for action next week.
"It's not clear what the Senate intends to do on housing," Fratto said.
The Bush administration favors two parts of the House plan, he said: overhauling regulation of housing finance giants Fannie Mae <FNM.N> and Freddie Mac <FRE.N>, and raising the limit on the size of mortgages that the FHA can insure.
"Those are our priorities," Fratto said. "If there's additional housing legislation, it should meet the president's principles of not using tax dollars to bail out lenders and speculators."
Some analysts have questioned the plan drawn up by Rep. Barney Frank, chairman of the House Financial Services Committee and a Massachusetts Democrat.
Funding appears uncertain, as does the level of participation it could win from lenders, who would have to forgive portions of loans to participate.
Senate Banking Committee Chairman Christopher Dodd, a Connecticut Democrat, has an FHA expansion plan targeting up to $400 billion in new guarantees and other measures.
But in the closely divided Senate, the outlook for any housing package will depend greatly on the views of Republicans, and particularly of Alabama Sen. Richard Shelby, the senior Republican on the banking committee.
"There is momentum on the side of getting something done" in the Senate, said Brian Gardner, a Washington analyst with the investment firm of Keefe Bruyette & Woods.
But, he said, "It's hard to handicap what Shelby is going to do. That's the key --- Shelby."
In a related matter, the FHA said it is expanding its FHA Secure program, an initiative launched last year by the Bush administration to help troubled mortgage borrowers.
Targeting primarily those struggling with high-cost subprime adjustable-rate mortgages, the agency said it will offer FHA-guaranteed refinancing to more borrowers by charging them higher premiums based on their risk profile.
The modified FHA Secure program "will help homeowners who can no longer afford their mortgages and missed up to three monthly mortgage payments over the past 12 months," FHA said.
As an alternative to foreclosure, borrowers can refinance with FHA and lenders can voluntarily write down the outstanding subprime mortgage principal balances, it said. (Editing by Jonathan Oatis) ((kevin.drawbaugh@reuters.com, +1 202 898 8390, +1 202 488 3459 (fax)))
Keywords: USA HOUSING/CONGRESS
Bush admin leaves door open on housing rescue plan
Reuters: [2008-05-09 21:18:00]
By Kevin Drawbaugh
WASHINGTON, May 9 (Reuters) - The White House on Friday set out terms for a possible deal on a housing market rescue plan, as a sweeping package backed by the House of Representatives was on its way to an uncertain greeting in the Senate.
The House approved a package of bills on Thursday that would let the Federal Housing Administration offer $300 billion in new guarantees to refinance the mortgages of an estimated 500,000 distressed borrowers.
The Bush administration, which has threatened to veto the legislation, said taxpayers should not have to pay for the new lending program, which the Congressional Budget Office estimates would cost taxpayers up to $2.7 billion.
"The FHA should be self-financing and not provide a subsidy from taxpayers. Taxpayers shouldn't be taking on the risk of foreclosure, and that means that underwriting standards should be sound," said White House spokesman Tony Fratto.
The House package also proposed new tax credits for homeowners and billions of dollars in loans and grants intended to help stabilize the slumping housing market.
The Senate Banking Committee had been expected to take up housing legislation on Tuesday. An aide said that was no longer scheduled, but the committee was aiming for action next week.
"It's not clear what the Senate intends to do on housing," Fratto said.
The Bush administration favors two parts of the House plan, he said: overhauling regulation of housing finance giants Fannie Mae <FNM.N> and Freddie Mac <FRE.N>, and raising the limit on the size of mortgages that the FHA can insure.
"Those are our priorities," Fratto said. "If there's additional housing legislation, it should meet the president's principles of not using tax dollars to bail out lenders and speculators."
Some analysts have questioned the plan drawn up by Rep. Barney Frank, chairman of the Financial Services Committee and a Massachusetts Democrat.
Funding appears uncertain, as does the level of participation it could win from lenders, who would have to forgive portions of loans to participate.
Senate Banking Committee Chairman Christopher Dodd, a Connecticut Democrat, has an FHA expansion plan targeting up to $400 billion in new guarantees and other measures.
But in the closely divided Senate, the outlook for any housing package will depend greatly on the views of Republicans, and particularly of Alabama Sen. Richard Shelby, the senior Republican on the banking committee.
"There is momentum on the side of getting something done" in the Senate, said Brian Gardner, a Washington analyst with the investment firm of Keefe Bruyette & Woods.
But, he said, "It's hard to handicap what Shelby is going to do. That's the key --- Shelby." (Editing by Leslie Adler) ((kevin.drawbaugh@reuters.com, +1 202 898 8390, +1 202 488 3459 (fax)))
Keywords: USA HOUSING/CONGRESS
Fannie Mae, Freddie Mac bill sale calendar
Reuters: [2008-05-09 14:54:00]
May 9 (Reuters) - The following is a list of scheduled U.S. agency bill
sales from Fannie Mae and Freddie Mac for 2008. Freddie Mac settlement dates
for its bill sales will be available the day those offerings are announced.
*=Bills have been priced
AGENCY TYPE OF BILLS ANNOUNCEMENT PRICING SETTLEMENT
MAY ISSUES:
Freddie Mac 3-month/6-month May 9 May 12 NA
Fannie Mae 3-month/6-month May 12 May 14 NA
Freddie Mac 3-month/6-month May 16 May 19 NA
Fannie Mae 3-month/6-month May 19 May 21 NA
Freddie Mac 3-month/6-month/12-month May 23 May 27 NA
Freddie Mac 1-month May 23 May 28 NA
Fannie Mae 3-month/6-month May 23 May 28 NA
Fannie Mae 1-year NA NA NA
JUNE ISSUES:
Freddie Mac 3-month/6-month May 30 June 2 NA
Fannie Mae 3-month/6-month May 30 June 4 NA
Freddie Mac 3-month/6-month June 6 June 9 NA
Fannie Mae 3-month/6-month June 9 June 11 NA
Freddie Mac 3-month/6-month June 13 June 16 NA
Fannie Mae 3-month/6-month June 16 June 18 NA
Freddie Mac 1-month June 20 June 25 NA
Freddie Mac 1-month June 20 June 25 NA
Fannie Mae 3-month/6-month June 23 June 25 NA
Freddie Mac 3-month/6-month June 27 June 30 NA
Fannie Mae 1-year NA NA NA
JULY ISSUES:
Fannie Mae 3-month/6-month June 30 July 2 NA
Freddie Mac 3-month/6-month July 3 July 7 NA
Fannie Mae 3-month/6-month July 7 July 9 NA
Freddie Mac 3-month/6-month July 11 July 14 NA
Fannie Mae 3-month/6-month July 14 July 16 NA
Freddie Mac 3-month/6-month/12-month July 18 July 21 NA
Fannie Mae 3-month/6-month July 21 July 23 NA
Freddie Mac 3-month/6-month July 25 July 28 NA
Freddie Mac 1-month July 25 July 30 NA
Fannie Mae 3-month/6-month July 28 July 30 NA
Fannie Mae 1-year NA NA NA
AUGUST ISSUES:
Freddie Mac 3-month/6-month Aug 1 Aug 4 NA
Fannie Mae 3-month/6-month Aug 4 Aug 6 NA
Freddie Mac 3-month/6-month Aug 8 Aug 11 NA
Fannie Mae 3-month/6-month Aug 11 Aug 13 NA
Freddie Mac 3-month/6-month/12-month Aug 15 Aug 18 NA
Fannie Mae 3-month/6-month Aug 18 Aug 20 NA
Freddie Mac 3-month/6-month Aug 22 Aug 25 NA
Freddie Mac 1-month Aug 22 Aug 27 NA
Fannie Mae 3-month/6-month Aug 25 Aug 27 NA
Fannie Mae 1-year NA NA NA
SEPTEMBER ISSUES:
Freddie Mac 3-month/6-month Aug 29 Sept 2 NA
Fannie Mae 3-month/6-month Aug 29 Sept 3 NA
Freddie Mac 3-month/6-month Sept 5 Sept 8 NA
Fannie Mae 3-month/6-month Sept 8 Sept 10 NA
Freddie Mac 3-month/6-month/12-month Sept 12 Sept 15 NA
Fannie Mae 3-month/6-month Sept 15 Sept 17 NA
Freddie Mac 3-month/6-month Sept 19 Sept 22 NA
Fannie Mae 3-month/6-month Sept 22 Sept 24 NA
Freddie Mac 1-month Sept 19 Sept 24 NA
Freddie Mac 3-month/6-month Sept 26 Sept 29 NA
Fannie Mae 1-year NA NA NA
OCTOBER ISSUES:
Fannie Mae 3-month/6-month Sept 29 Oct 1 NA
Freddie Mac 3-month/6-month Oct 3 Oct 6 NA
Fannie Mae 3-month/6-month Oct 6 Oct 8 NA
Freddie Mac 3-month/6-month/12-month Oct 10 Oct 14 NA
Fannie Mae 3-month/6-month Oct 10 Oct 15 NA
Freddie Mac 3-month/6-month Oct 17 Oct 20 NA
Fannie Mae 3-month/6-month Oct 20 Oct 22 NA
Freddie Mac 3-month/6-month Oct 24 Oct 27 NA
Freddie Mac 1-month Oct 24 Oct 29 NA
Fannie Mae 3-month/6-month Oct 27 Oct 29 NA
Fannie Mae 1-year NA NA NA
NOVEMBER ISSUES:
Freddie Mac 3-month/6-month Oct 31 Nov 3 NA
Fannie Mae 3-month/6-month Nov 3 Nov 5 NA
Freddie Mac 3-month/6-month/12-month Nov 7 Nov 10 NA
Fannie Mae 3-month/6-month Nov 10 Nov 12 NA
Freddie Mac 3-month/6-month Nov 14 Nov 17 NA
Fannie Mae 3-month/6-month Nov 17 Nov 19 NA
Freddie Mac 3-month/6-month Nov 21 Nov 24 NA
Freddie Mac 1-month Nov 21 Nov 26 NA
Fannie Mae 3-month/6-month Nov 24 Nov 26 NA
Fannie Mae 1-year NA NA NA
DECEMBER ISSUES:
Freddie Mac 3-month/6-month Nov 28 Dec 1 NA
Fannie Mae 3-month/6-month Dec 1 Dec 3 NA
Freddie Mac 3-month/6-month/12-month Dec 5 Dec 8 NA
Fannie Mae 3-month/6-month Dec 8 Dec 10 NA
Freddie Mac 3-month/6-month Dec 12 Dec 15 NA
Fannie Mae 3-month/6-month Dec 15 Dec 17 NA
Freddie Mac 3-month/6-month Dec 19 Dec 22 NA
Fannie Mae 3-month/6-month Dec 22 Dec 24 NA
Freddie Mac 3-month/6-month Dec 26 Dec 29 NA
Freddie Mac 1-month Dec 26 Dec 31 NA
Fannie Mae 3-month/6-month Dec 29 Dec 31 NA
Fannie Mae 1-year NA NA NA
Footnotes:
--The minimum issue size for Fannie Mae benchmark and Freddie Mac reference
bills is $1 billion.
--Freddie Mac will issue 3-month, 6-month and 12-month bills in 2007 and
2008. Announcements will be made on Fridays with pricing on Mondays, unless
there is a holiday in which case pricing will be on Tuesdays.
(Reporting by Caryn Trokie)
((caryn.trokie@reuters.com ; + 1 646-223-6318; Reuters Messaging:
caryn.trokie.reuters.com@reuters.net))
Keywords: FINANCIAL AGENCY BILLS DEBT
U.S. agency 2008 note sales calendar
Reuters: [2008-05-09 14:53:00]
May 9 (Reuters) - The following are the sales schedules for Fannie Mae
benchmark notes and Freddie Mac reference notes in 2008.
Debt issued by the Federal Home Loan Banks is not sold based on a preset
calendar, and offerings will be added as they are announced.
In addition to these offerings, Freddie Mac and Fannie Mae sell bills each
week [N07164318].
*Issue has been priced
AGENCY TYPE OF DEBT AMOUNT ANNOUNCEMENT/PRICING SETTLEMENT
MAY:
Fannie Mae 2-,3-, 5-, 10-yr notes NA May 13/NA NA
Freddie Mac 2-,3-, 5-, 10-yr notes NA May 19/NA NA
JUNE:
Freddie Mac 2-,3-, 5-, 10-yr notes NA June 10/NA NA
Fannie Mae 2-,3-, 5-, 10-yr notes NA June 2/NA NA
JULY:
Fannie Mae 2-,3-, 5-, 10-yr notes NA July 7/NA NA
Freddie Mac 2-,3-, 5-, 10-yr notes NA July 16/NA NA
AUGUST:
Fannie Mae 2-,3-, 5-, 10-yr notes NA Aug 12/NA NA
Freddie Mac 2-,3-, 5-, 10-yr notes NA Aug 18/NA NA
SEPTEMBER:
Freddie Mac 2-,3-, 5-, 10-yr notes NA Sept 2/NA NA
Fannie Mae 2-,3-, 5-, 10-yr notes NA Sept 8/NA NA
OCTOBER:
Freddie Mac 2-,3-, 5-, 10-yr notes NA Oct 8/NA NA
Fannie Mae 2-,3-, 5-, 10-yr notes NA Oct 20/NA NA
NOVEMBER:
Freddie Mac 2-,3-, 5-, 10-yr notes NA Nov 4/NA NA
Fannie Mae 2-,3-, 5-, 10-yr notes NA Nov 17/NA NA
DECEMBER:
Freddie Mac 2-,3-, 5-, 10-yr notes NA Dec 1/NA NA
Fannie Mae 2-,3-, 5-, 10-yr notes NA Dec 8/NA NA
-- Fannie Mae will state the specific maturity and size of the offerings on
announcement dates. Fannie Mae also may opt to skip issuance.
-- The minimum issue size for new Fannie Mae 2-, 3-, 5- 10-year notes is $3
billion. Fannie Mae said benchmark note sales are expected to price within 3
business days of the announcement date and will generally settle 2 business
days after the pricing of the issue.
-- Freddie Mac will state the specific maturity and size of the offerings on
announcement dates.
-- The minimum size for Freddie Mac new 2-yr, 3-yr, 5-yr and 10-year note
offerings is $3 billion. There is no minimum size for a reopening. The minimum
size of new REMIC offerings is $1 billion.
NA = Announcement or settlement dates are unavailable.
((U.S. Financial Markets 646-223-6330))
Keywords: FINANCIAL AGENCIES BONDS
Sri Lankan shares fall on election jitters
Reuters: [2008-05-09 14:47:00]
By Ranga Sirilal
COLOMBO, May 9 (Reuters) - Sri Lankan shares dropped on
Friday as investors awaited provincial elections on the weekend
in the war-ravaged east of the island for the first time in 20
years
The authorities have tightened security for the polls in the
districts of Trincomalee, Ampara and Batticaloa on Saturday. The
elections come after intensified fighting between the army and
Tamil Tiger rebels in the north.
The Colombo All-Share index <.CSE> fell 0.22 percent or 5.72
points to 2,641.24. Turnover was 1.3 billion rupees ($12
million), well above last year's daily average of 400 million on
block trade.
The index fell almost 7 percent in early January when the
government scrapped a six-year truce with Tamil Tiger rebels, but
has since recovered and is up 3.94 percent in 2008.
No. 1 mobile phone operator Dialog Telekom <DIAL.CM>, which
makes up more than 15 percent of the index, fell 1.6 percent to
15.50 rupees calculated on a weighted average and conglomerate
John Keells Holdings <JKH.CM> shed 0.42 percent to 117.50 rupees.
Lanka Orix Leasing <LOLC.CM> gained 4.12 percent to 120
rupees after it acquired 67 percent of Commercial Leasing
<COML.CM>, which fell 7.8 percent to 95 rupees on a block deal.
The rupee <LKR=> closed stronger at 107.65/75 per dollar from
Thursday's 107.80/85, as exporters cashed in their dollar
holdings in anticipation of foreign inflows into treasury bills,
dealers said.
The Central Bank on Tuesday opened the treasury bill market
to foreign investors to help broaden the government securities
market. See [ID:nCOL242814]
The interbank lending rate <CLIBOR> rose to 17.272 percent
from Thursday's 16.716 percent.
($1=107.70 rupees)
((ranga.sirilal@reuters.com; +94-11-237-5903; Reuters Messaging;
ranga.sirilal.reuters.com@reuters.net))
Keywords: MARKETS SRILANKA/
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