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MORTGAGE FINANCE
Fannie, Freddie Bond Sales Criticized
Fannie Mae and Freddie Mac are failing in their federal mission to cut the cost of home loans by selling mortgage bonds, a study by the Federal Reserve Bank of Boston said.
Fannie Mae and Freddie Mac guarantee pools of mortgages from lenders and then repackage them as securities for sale to investors. Congress supports the companies because of the belief that the sale of mortgage securities helps keep borrowing costs down for homebuyers.
Since 1983, borrowing costs have declined for low-income, first-time and other homebuyers, but the Boston Fed economists said Fannie Mae and Freddie Mac showed no signs of contributing to that trend.
EARNINGS
Sandy Spring Bancorp of Olney earned $8.1 million (55 cents) in the third quarter, down from $9.5 million (64 cents) in the same quarter last year. Interest income rose 7 percent, to $24.1 million. Shares closed at $36.77, down 60 cents.
Virginia Commerce Bancorp said third-quarter profit rose to $6.1 million (27 cents) from $5.3 million (23 cents). Interest income rose 20 percent, to $17.5 million. Shares closed at $19.26, down $2.52.
Compiled from reports by Washington Post staff writers, the Associated Press and Bloomberg News.
