Housing

Freddie Mac racked up a $5 billion profit in the second quarter, the mortgage backer said in its quarterly report Wednesday. The earnings are the second-highest in the history of Freddie Mac, which has now extended its streak of profitable quarters to seven in a row.

The Department of Justice announced Tuesday that it was suing Bank of America for allegedly lying to investors about the riskiness of about $850 million worth of mortgage-backed securities back in 2008.

According to a press release by the Justice Department, the action is part of efforts of the Obama administration's Financial Fraud Enforcement Task Force's RMBS Working Group.

Copyright 2018 NPR. To see more, visit http://www.npr.org/.

RENEE MONTAGNE, HOST:

The mortgage giants Fannie Mae and Freddie Mac got hit so hard by the housing crisis that they required a massive federal rescue. Now lawmakers are looking to scale back the two entities' role — and the government's — in the mortgage market.

The Senate Banking Committee is expected to vote Thursday on President Obama's nominee to head the agency that oversees Fannie and Freddie.

Shawn Rossi / Creative Commons/Flickr

As the building boom returns to northern Colorado, some cities are re-examining how much they charge developers to build.

Transcript

AUDIE CORNISH, HOST:

It's ALL THINGS CONSIDERED from NPR News. I'm Audie Cornish.

Time spent among people who do the same kind of work can boost morale, sharpen creativity, just go to a conference or a retreat. So some people involved in education thought how about giving teachers a place where are a lot of them can live under one roof. They're trying that in Philadelphia.

Here's Elizabeth Fiedler of member station WHYY.

(SOUNDBITE OF MACHINERY)

A recent spike in mortgage rates has created a new predicament for potential homebuyers: Forge ahead and try to lock in now? Or hold off?

Dhruv Gupta was quoted a 3.5 percent rate in May while searching for a place to buy in the San Francisco area. Less than two months later, he's looking at 5.2 percent for the same loan. But this trend has not deterred Gupta.

"It's a fact of life," he says. "I mean I can't control them, so what do you do?"

The Chicago Housing Authority has torn down all of its high rises and says it's close to completing its plans to transform public housing. Now, city leaders are moving to the next part of their plan: using public housing funds not just to build homes for poor families, but stores where they could shop and work. Some residents, however, say the city is breaking a promise to provide affordable housing.

Six former employees and one contractor say Bank of America's mortgage servicing unit consistently lied to homeowners, fraudulently denied loan modifications and offered bonuses to staff for intentionally pushing people into foreclosure, according to a Salon.com report.

Mortgage rates have seen a relatively sharp rise this month. The average 30-year fixed-rate loan hit 4 percent earlier in June — a big jump from the record lows of recent years. Some investors are now concerned that the housing recovery could be stifled if rates continue to rise quickly.

The Federal Reserve has two main missions: to maximize employment and minimize inflation. Right now, there are few, if any, signs that prices for goods are spiking, and the job market is still crawling out of its long, deep slump.

Pages