The Obama administration plans to begin a public debate next month on how best to overhaul Fannie Mae, Freddie Mac and the nation’s housing finance system.
Officials say they will proceed with reform based, in part, on the principles that borrowers should be able to get home loans even during periods of economic distress and that low-income people should not be excluded from financing to buy homes.
The Housing Finance rights issue payment date has been extended.
Shareholders and investors who have taken up rights in Housing Finance have been given a one week extension to make payments for new shares.
This follows an extension granted by the industry regulator to allow trading of rights at the bourse up to Friday last week.
According to the new timetable, the last day of payments has been extended from June 20 to June 27. New investors keen to own a stake in the mortgage firm have so far snapped up over 24 million rights renounced by shareholders at the Nairobi Stock Exchange.
The ongoing Housing Finance (HF) rights issue has received a major boost after a key shareholder announced that it is going to exercise its full rights.
British-American Investments Company (BAICL), a principal shareholder of the mortgage financier, Wednesday confirmed that it will take up its full allocation in the HF rights issue.
BAICL is poised to receive an allocation of 5,635,000 new ordinary shares as per the issue’s information memorandum. According to the memorandum, the company’s shareholders as at May 12, 2008, will be allotted one new share for every one (share) held on that date. Noting that the Group’s shareholders had given them a go ahead on the issue, Benson Wairegi, BAICL Group managing director, said the capital injection by shareholders is a strong vote of confidence in the future of the mortgage lender.