The MReport Webcast: Friday 4/13/2016

For seriously delinquent, underwater homeowners struggling through the murky aftermath of the financial crisis, help is on the way in the form of a gift from the Federal Housing Finance Agency. Fannie Mae and Freddie Mac will soon be required to offer principal reduction to certain seriously delinquent, underwater borrowers that are grappling with the after effects of the crisis.

The new offering, or the Principal Reduction Modification program, is designed to help struggling homeowners avoid foreclosure and stay in their homes, the FHFA stated. The question at hand now is how the program will affect the GSEs bottom lines. The modification program was approved under FHFA’s statutory authority in the Emergency Economic Stabilization Act of 2008 to quote implement a plan that seeks to maximize assistance for homeowners and minimize foreclosures close quote.

With intense pressure stemming from falling oil prices, historically low interest rates, and volatile financial markets profits at San Francisco-based Wells Fargo did not come in strong for the first quarter of 2016. Wells Fargo & Company reported in its earnings statement released Thursday that net income at the bank reached 5 point 5 billion, or 99 cents per share, for first quarter of 2016. Last year, during this time, the bank reported a net income of 5 point 8 billion, or one dollar and 4 cent per share.