UPDATE 1-OFHEO-Fannie, Freddie must avoid some subprime loans

(Reuters) - WASHINGTON, July 13 - The regulator for mortgage
finance companies Fannie Mae and Freddie Mac
said on Friday it had told them not to buy mortgages that do
not conform to consumer protection standards set by bank
supervisors.




The Office of Federal Housing Enterprise Oversight told the
companies to avoid loans that do not meet standards set by bank
regulators in recent notices aimed at curbing dangerous
subprime loans to borrowers with damaged credit.


Read more at Reuters.com Bonds News

U.S. 30-year mortgage rates spike in latest week

(Reuters) - Frank Nothaft, Freddie Mac vice president and chief
economist, said the mortgage finance giant expected rates to
stay around their current levels through the end of the year.




"Freddie Mac expects weakness in the housing market to
persist in the second half of the year, with 2007 total home
sales and housing starts hitting 5-year lows," he also said.


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Agency Mortgage Bonds Have Worst Month Since July 2003, Lehman Index Shows

(Bloomberg) -- Mortgage-backed bonds guaranteed by
Fannie Mae, Freddie Mac and Ginnie Mae, a $4 trillion market
that rivals the scope of U.S. Treasuries, underperformed last
month by the most since July 2003 as investors sought the safety
of government debt and interest rates became more volatile.

So-called agency mortgage bonds in June returned
0.53 percentage points less than U.S. Treasury notes with
maturities similar to their expected lives, a Lehman Brothers
Holdings Inc. index shows.


Read more at Bloomberg Bonds News

UPDATE 1-Fannie, Freddie had enough capital in Q1, says OFHEO

(Reuters) - WASHINGTON, June 28 - Mortgage finance companies
Fannie Mae and Freddie Mac FRE.N were "adequately
capitalized" during the first quarter of the year, the
companies' regulator said on Thursday.




The Office of Federal Housing Enterprise Oversight said the
both companies achieved the designation, the highest they can
receive concerning its reserves against possible losses, as of
March 31.


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U.S. Stock-Index Futures Advance; Bear Stearns, Apple, Google Shares Climb

(Bloomberg) -- U.S. stocks advanced after oil prices
fell and concerns eased that losses tied to subprime mortgages
will hurt financial company earnings.

Freddie Mac, the second-biggest U.S. mortgage finance
company, gained after its treasurer said the subprime slump is
``contained.'' Apple Inc., maker of the iPod music player, and
Google Inc., the world's most popular Internet search engine,
climbed after brokerages recommended buying the shares.


Read more at Bloomberg Stocks News

Freddie Mac posts $211 mln net loss in 1st quarter

(Reuters) - The company reported a net share loss of 46 cents in the first quarter. Excluding unusual items, Freddie Mac was expected to show a profit of $1.09 per share in the first quarter, according to Reuters Estimates.




With this report, Freddie Mac returns to timely quarterly financial reporting for the first time since its 2003 accounting scandal, which led to a $5 billion restatement of past earnings.


Read more at Reuters.com Business News