Freddie Mac

Browse articles from all of our Newsletters related to Freddie Mac.

September 29, 2016 - Inside Mortgage Finance

Lender Bucks Traditional Loan Originator Compensation Plan Offerings by Paying LO an Ongoing Portion of Servicing Fee

Atlantic Bay Mortgage Group recently started offering its loan originators a unique option in terms of compensation: a share of the servicing fee. More than 90 percent of loan originator compensation plans are based on an LO’s volume, according to surveys conducted by Stratmor Group. Atlantic Bay’s Progressive Earnings Plan allows LOs to earn an annuity stream of income from mortgages when the lender retains the servicing. Rebecca Chaney, a senior executive vice president of legal affairs at Atlantic Bay, likened...

September 29, 2016 - Inside Mortgage Finance

New, Alternative GSE Credit-Scoring Models Would Get a Boost From Bill Under Consideration in House

Mortgage lenders would be able to extend more credit to traditionally underserved borrowers with greater confidence and sell those loans to Fannie Mae and Freddie Mac, according to proponents of legislation pending on Capitol Hill. H.R. 4211, the “Credit Score Competition Act of 2015,” introduced by Rep. Ed Royce, R-CA, would allow Fannie and Freddie to consider alternative scoring models when determining whether to purchase a residential mortgage. Further, the Federal Housing Finance Agency would be given...

September 29, 2016 - Inside Mortgage Finance

Freddie’s Deep Coverage MI Pilot Underwhelms Mortgage Bankers and Private MIs Looking for Something Else

Freddie Mac’s newly launched front-end credit-risk transfer pilot doesn’t appear to be the expansion of credit-risk transfers that mortgage bankers have been clamoring for. For starters, the deep MI pilot won’t result in lower guarantee fees, which is what the Mortgage Bankers Association has been seeking. And it’s not the deep-cover primary insurance that private MIs would like to write. Under the Freddie Mac Deep MI pilot, the government-sponsored enterprise is purchasing...

September 29, 2016 - Inside Mortgage Finance

The State of Mortgage Servicing Sales: ‘It’s Hand- To-Hand Combat’ on Some Deals, Analyst Says

In general, it hasn’t been a pretty picture this year when it comes to the sale of “bulk” mortgage servicing rights, especially Ginnie Mae receivables. According to figures compiled by affiliate publication Inside Mortgage Trends, bulk MSR transfers (one barometer of sales) increased 20.6 percent in the second quarter compared to the first with roughly $42.9 billion of Fannie Mae, Freddie Mac and Ginnie product changing hands. The third quarter is expected...

September 29, 2016 - Inside Mortgage Finance

‘Agency Jumbo’ Sector Spurts Ahead of Non-Agency Jumbo Production, Slight Loan Limit Hike Likely

During the second quarter, Fannie Mae, Freddie Mac and the Veterans Affairs home loan guaranty program all saw significant increases in production of “agency jumbo” loans – mortgages with loan amounts exceeding the baseline $417,00 agency loan limit. A new Inside Mortgage Finance analysis reveals that the agencies’ combined jumbo production, including FHA activity, rose 53.3 percent to $36.2 billion during the second quarter. That represented the highest quarterly total since “emergency” high-cost loan limits were established in the aftermath of the financial crisis. The FHA had...[Includes three data tables]

September 28, 2016 - IMFnews

Short Takes: So Long to GSE Plaintiff Perry Capital / Lost Cause? / GSE Common is Cheap / RBS Settles CU MBS Case / Front-end or Back-end?

Closing the fund means that Perry Capital will have to liquidate its holdings – including its positions in Fannie and Freddie...

September 28, 2016 - IMFnews

Redwood CEO: JPMorgan ‘Ahead of Everybody Else’ with Non-Agency MBS Packed with GSE-Eligible Loans

The Redwood CEO said the MBS offer a number of benefits to Chase, including effectively cutting the guaranty fee…

September 27, 2016 - IMFnews

Short Takes: Trump Has Some Choice Words for Janet Yellen / The CFPB Now Carries the Wells Fargo ‘Shield’ / FBR Likes MI Sector / Alt Credit Score Models? / A New CEO for New Castle

Apparently, not everyone is a fan of low rates. Take Donald Trump, for instance...

September 27, 2016 - IMFnews

Freddie Mac Rolls Out Front-End Risk-Sharing Pilot; But No Benefit for Lenders

One trade group source had this to say about the arrangement: “There’s no g-fee break? Then it doesn’t sound like front-end coverage that helps lenders.”

September 26, 2016 - IMFnews

Short Takes: Trump & Hillary Mortgage Corp. / CHLA Weighs In on Front-End Risk-Sharing: No / Will ALTA Break the CFPB’s Website? / Now, Print Your Name and Personal Story Right Here

When it comes to front-end GSE risk sharing deals, just say no?

September 26, 2016 - IMFnews

Fannie Mae Rolls Out DU 10.0 Featuring ‘Trended Credit Data’

Fannie said DU 10.0 also will help borrowers who have multiple financed properties, eliminating certain eligibility overlays…

September 26, 2016 - IMFnews

MBA Task Force Proposes Standardized Loan Mod Program to Replace HAMP

The task force consists of 20 MBA member companies, led by Alex McGillis of Quicken Loans and Erik Schmitt of JPMorgan Chase.

September 23, 2016 - IMFnews

What We’re Hearing: GSE Loan Limits to Move Higher? / No One Feels Sorry for Wells Fargo / The King of the Cross-Sell is now the King of Pain / Maybe the CFPB Needs a Kick in the… / MBA’s Dave Stevens Doesn’t Expect Peace to Break Out / Skyline Still Hiring

Mortgage lenders, start your engines: the Fannie Mae/Freddie Mac loan limit is set to rise...

September 23, 2016 - Inside MBS & ABS

Shades of 2015 as FOMC Maintains Status Quo, Consensus is a December Raise, Same as Last Year

As the third quarter draws to a close without a single increase in interest rates from the Federal Reserve, 2016 is increasingly looking like 2015, when the Fed said it would raise rates multiple times sometime during the year, only to wait until its very last meeting before finally raising them. Similarly, the U.S. central bank said it would raise rates four times in 2016, and so far, it has yet to raise rates once this year. This week, Fed Chair Janet Yellen explicitly stated she expects a rate increase this year, as do a majority of voting members of the Fed’s Open Market Committee. However, since they decided to take a pass this time around, the Fed only has...

September 23, 2016 - Inside MBS & ABS

Judge Orders Government to Produce More Documents In GSE Shareholder Case, Shows Signs of Annoyance

In a potential legal coup for Fannie Mae and Freddie Mac shareholders, Federal Claims Court Judge Margaret Sweeney ordered the U.S. Treasury Department and Federal Housing Finance Agency to turn over another large batch of documents in relation to the Fairholme Funds Inc. v. United States, et al. net worth sweep case. Sweeney this week forced the government agencies to produce more documents, close to 60 this time, for the plaintiff’s attorneys. The agencies have attempted to keep the various memos, emails, presentations and other communications hidden under executive privilege. Shareholders say...

September 23, 2016 - Inside MBS & ABS

FHFA Has Settled Almost All of Its MBS Lawsuits With One Glaring Exception: RBS/Greenwich Capital

Five years have passed since the Federal Housing Finance Agency filed suit against 18 Wall Street firms and banks for peddling nonprime MBS to Fannie Mae and Freddie Mac in the years leading up to the housing crisis. All of the defendants have settled or lost with one glaring exception: Royal Bank of Scotland. As for when (and if) RBS will settle, that’s a different and complicated matter. The bank is presently owned by the British government, which took control of it during the financial crisis. In other words, any settlement might entail taxpayer money and cause a political controversy in the U.K. And the bill could be...

September 23, 2016 - Inside MBS & ABS

Trade Groups Representing Small/Mid-Sized GSE Seller-Servicers Circle the Wagons Around the CSP

Some small and medium-sized lenders continue to fear that their access to the secondary mortgage market could be hampered if the fledgling common securitization platform of Fannie Mae and Freddie Mac is turned over to the private sector. At this point, the CSP is a joint venture owned by the two government-sponsored enterprises with a long-term future as uncertain as that of the GSEs themselves. But there are rumors that Congress may transfer the CSP to private owners sooner than expected. The vehicle for such a transfer would not be...

September 23, 2016 - Inside MBS & ABS

Other Investors Stepped Up as Federal Reserve Holdings Of Agency MBS Declined Slightly in Second Quarter

Foreign investors, commercial banks and mutual funds all beefed up their holdings of agency MBS during the second quarter of 2016, according to a new Inside MBS & ABS analysis. The Federal Reserve remained the biggest investor in the agency MBS market with $1.744 trillion on its books at the end of June. That accounted for 29.7 percent of the $5.867 trillion of single-family agency MBS outstanding at that time, but it was down 0.5 percent from the end of March. The central bank’s MBS holdings vary slightly in the Fed’s weekly snapshots as pending transactions wait to clear, but its game plan is to hold its portfolio steady by reinvesting principal payments. The single-family agency MBS market grew...[Includes two data tables]

September 23, 2016 - IMFnews

Foreign Investors, Others Beef Up Their Investment in Agency MBS

According to Treasury Department reports, overseas investors held $821.3 billion of Fannie, Freddie and Ginnie MBS at the end of June, a 5.0 percent increase from March.

September 22, 2016 - Inside Mortgage Finance

Freddie’s New Mortgage Pilot Loosens Requirements Based on Demographic Trends of Diverse Communities

Freddie Mac is partnering with two lenders for a mortgage pilot program that will consider a wider range of underwriting criteria, including income from seasonal work, to help promote homeownership in diverse communities. The pilot, based on certain borrower characteristics, was launched with New American Funding, headquartered in Dallas, and Las Vegas-based Alterra Home Loans. It was announced this week during the national convention of the National Association of Hispanic Real Estate Professionals. The NAHREP said the narrow definitions of creditworthiness make it especially difficult for minority and first-time borrowers to qualify for and obtain a mortgage. The two nonbank lenders, which specialize in serving the Hispanic community and low-income borrowers, will build...

September 22, 2016 - Inside Mortgage Finance

Closings of Purchase Mortgages Increasingly Delayed As Strong Volume Mixes with Shortage of Appraisers

An increasing share of purchase mortgages have missed their scheduled closing dates in recent months, according to the latest Campbell/Inside Mortgage Finance HousingPulse Tracking Survey. Many of the delays are tied to a shortage of appraisers as home sale activity increased during the spring and summer. Just before the start of the spring home-buying season, the on-time share of closings was at high levels for mortgage-financed purchases. Some 76.6 percent of purchases in April with a low downpayment mortgage securitized by Fannie Mae and Freddie Mac closed on time, based on a three-month moving average. The on-time closing share has declined...

September 22, 2016 - Inside Mortgage Finance

Booming MBS Issuance and Uptick in Interest Rates May Mean Stellar 3Q Earnings for Fannie and Freddie

Thanks to booming originations the past few months – which should translate into higher guaranty fee income – Fannie Mae and Freddie Mac are likely to post their strongest profits of the year in the third quarter, according to interviews conducted by Inside Mortgage Finance this week. But it’s not just higher loan production that should allow profits to soar – it’s the fact that the yield on the 10-year Treasury now stands at 1.69 percent, 21 basis points higher than June 30. The 10-year rate is...

September 22, 2016 - IMFnews

Short Takes: Don v. Hillary. Bring the Popcorn / The Future of Fannie and Freddie? / How to Promote Homeownership / JPM Finishes the Mortgage Test Early

Meanwhile, if you want to know where Clinton and Trump stand on the issue of homeownership in America, you can review their respective party platforms...

September 22, 2016 - Inside Mortgage Finance

Servicing Business Continued Shifting Toward Nonbanks In 2Q16, and It’s Becoming Somewhat Less Top-Heavy

Nonbank loan administrators expanded their share of the mortgage servicing market during the second quarter, mostly capturing agency business abandoned by large banks, according to a new ranking and analysis by Inside Mortgage Finance. Commercial banks, savings institutions and credit unions reported a combined single-family servicing portfolio of $6.930 trillion as of the end of June, according to call reports. That was down 0.5 percent from the previous quarter despite the fact that the total depository portfolio holdings of unsecuritized mortgages increased 1.7 percent during that period. But bank, thrift and credit union loan servicing for others – typically loans held in mortgage-backed securities trusts – fell...[Includes two data tables]

September 21, 2016 - IMFnews

Short Takes: Hillary to Turn GSEs Into Public ‘Utilities’? / Don, Low Rates are Good / How Far Will the OCC Go? / A Lack of Ethics was the Problem / Bestborn Hires Three

So, what’s wrong with banks and financial service companies offering sales quotas? Nothing at all, if...

September 21, 2016 - IMFnews

Judge Orders Govt. to Produce More GSE-Related Docs, Shows Signs of Frustration

Margaret Sweeny, the judge presiding over the case, is growing increasingly frustrated with the government’s attempt to keep documents out of the public domain

September 21, 2016 - IMFnews

Freddie Mac Predicts a 3Q16 Production Boom of $595 Billion

Freddie expects originations to hit $2.0 trillion this year, a 14.3 percent sequential improvement…

September 20, 2016 - IMFnews

MountainView, Prestwick Roll Out New MSR Auctions

As rates increase, more deals are hitting the market...

September 20, 2016 - IMFnews

Mortgage Trade Groups Fear an 'October Surprise' on the GSE CSP

“We’re extremely concerned the CSP would be transferred to a nonprofit or a corporation where the board members include executives from JPMorgan Chase or GE Capital,” CMLA's Corso said.

September 19, 2016 - IMFnews

Phoenix Flow Deal Could Yield $3 Billion in Product

The identity of the seller was not revealed in the offering circular except to say the company is “well capitalized.”

September 19, 2016 - IMFnews

Credit Unions Voice Concerns over GSE CSP Project. A Level Playing Field?

NAFCU wants the FHFA to preserve existing Fannie and Freddie securities so they don’t become unmarketable after the launch…

September 19, 2016 - IMFnews

GSEs Have A Strong August; Market Share Gains?

Fannie and Freddie could top last year’s $824.8 billion in single-family MBS issuance by the time 2016 is over…

September 16, 2016 - Inside The GSEs

GSE Roundup

HFSC Continues to Seek Five-Member Commission for FHFA. During a full committee markup this week, the House Financial Services Committee voted to convert regulatory agencies currently headed by single directors, such as the Federal Housing Finance Agency, along with the Consumer Financial Protection Bureau and Office of the Comptroller of the Currency, into bipartisan, five-member commissions. The HFSC voted to make the Treasury’s one-time GSE privatization study become an annual report/testimony. FHFA Publishes Open Government Plan 2016. The Federal Housing Finance Agency published a document this week highlighting some of the ways it plans to advance the principles of “transparency, participation and collaboration” through open communication and public engagement.

September 16, 2016 - Inside The GSEs

GSE Shareholders Amend Compaint to Dismiss, Add Charges

Plaintiffs in a Fannie Mae and Freddie Mac shareholder case challenging the GSEs’ quarterly earnings sweep dropped some of the charges in their original complaint to bypass the Federal Housing Finance Agency’s motion to consolidate all of the cases. The pair, Gary Hindes and David Jacobs, is looking to dismiss counts that allege derivative breach of contract and other similar claims and instead allege “unjust enrichment” against the Treasury Department. The plaintiffs bought the class action suit focusing on Delaware and Virginia corporate law on behalf of themselves and other stockholders. Court documents in David Jacobs and Gary Hindes v. The Federal Housing Finance Agency...

September 16, 2016 - Inside The GSEs

Freddie Holds Bus Tour of Foreclosed Properties in Chicago

Freddie is busing potential homebuyers to tour affordable housing properties in Chicago as a way to reach low- to moderate income borrowers and unload foreclosed homes in the city. The event, to be held on Sept. 17, is sponsored by the GSE’s HomeSteps real estate unit and the Chicago Urban League. It will include tips on buying foreclosed properties.HomeSteps is the mortgage giant’s program to sell foreclosed properties. While the program is available across the country, it offers special financing for buyers in only 10 states: Alabama, Florida, Georgia, Illinois, Kentucky, North Carolina, South Carolina, Tennessee, Texas and Virginia.

September 16, 2016 - Inside The GSEs

GSEs Modernizing Mortgages with Uniform Closing Dataset

Fannie Mae and Freddie Mac are well underway preparing to implement the Uniform Closing Dataset that will become mandatory in the second half of 2017. A big part of the change is moving to an electronic process to support the Consumer Financial Protection Bureau’s closing disclosure. This month, Fannie announced a new collection service that it said offers flexible options for delivering the UCD file in multiple phases of the business process. It includes the ability to verify data and eligibility electronically. Banks can submit either a single file or batch file, get data quality and eligibility feedback messages, and each submission is...

September 16, 2016 - Inside The GSEs

Judge Rules to Dismiss GSE Shareholder Case in KY

A GSE investor in Kentucky lost her case last week when the court dismissed claims that the government damaged Fannie Mae and Freddie Mac by implementing the net worth sweep of the GSEs’ profits. Arnetia Robinson alleged that her investments in Fannie and Freddie were “materially damaged” when the Federal Housing Finance Agency and the Treasury Department amended the existing preferred stock purchase agreement in 2012. According to court records, Robinson was seeking declaratory and injunctive relief that would prevent enforcement of portions of the PSPA. She contended that the sweep violates the Housing and Economic Recovery Act and said the Treasury acted “arbitrarily and capriciously.”

September 16, 2016 - Inside The GSEs

Fannie Names NPL Winners, Freddie Markets Multi-servicer NPL

Recent nonperforming loan activity at the GSEs includes billion dollar transactions in which Fannie Mae revealed the winning bidders of its seventh NPL auction and Freddie Mac marketed its first multi-servicer NPL sale. Subsidiaries of Goldman Sachs, Neuberger Berman, Lone Star and MFA were the winning bidders of Fannie’s latest nonperforming loan sale, totaling $1.06 billion. The GSE announced last week that it had sold 6,800 mortgages total, in four separate pools. Goldman’s MTGLQ Investors won the largest chunk, 2,887 loans with an aggregate unpaid principal balance of $468,901,523. Neuberger’s PRMF Acquisition LLC won the second pool, 1,551 loans, and Lone Star’s...

September 16, 2016 - Inside The GSEs

CSP Progress on Track, But Some Leary of Change, Market Fairness

Credit unions and some others in the industry are apprehensive about the changes the GSEs’ Common Securitization Platform will bring as the date nears for Freddie Mac to issue the first mortgage-backed security on the system. The National Association of Federal Credit Unions wrote the Federal Housing Finance Agency last week citing concerns about the CSP’s potential impact on credit unions. While the trade group said it is not opposed to creating a more efficient platform with an open architecture to support multiple issuers, Ann Kossachev, NAFCU’s counsel, worries about a level playing field. “NAFCU and its member credit unions are concerned that the consolidation of the securitization programs will make it more difficult for...

September 16, 2016 - IMFnews

What We’re Hearing: How Much Will the Brits Wind Up Paying the FHFA? / Maybe Elton and McCartney Can Help / Remember Lehman Brothers? / What Will Donald Trump do with Fannie Mae and Freddie Mac? / JPM Promotes Three

And since RBS is essentially owned by the British government, any settlement money will indirectly come from U.K. taxpayers. Who knows, maybe Adele, Paul McCartney and Elton John can chip in…

September 16, 2016 - Inside MBS & ABS

BNY Mellon Expands Servicing Oversight Business by Handling Reporting to GSEs for Many Smaller Servicers

Bank of New York Mellon has expanded its servicing oversight business by looking beyond the shrinking non-agency MBS market. The company recently started handling reporting duties for many small servicers on mortgages serviced for the government-sponsored enterprises. For 25 years, BNY Mellon has been a master servicer on non-agency MBS. The role involves oversight of primary servicers. BNY Mellon’s master servicing portfolio for non-agency MBS has declined along with the total amount of non-agency MBS outstanding. The firm handled...

September 16, 2016 - Inside MBS & ABS

Judges in Kentucky and Virginia Dismiss Two Separate GSE Shareholder Cases

Individual investors in Fannie Mae and Freddie Mac stock lost separate legal battles to inspect the corporate records of Freddie and prove that the Treasury sweep of the government-sponsored enterprises’ profits is damaging and unjust. In the case of Arnetia Joyce Robinson v. The Federal Housing Finance Agency, et al., the shareholder plaintiff argued that her investments were materially damaged when FHFA and the Treasury Department implemented the net worth sweep back in 2012. Robinson argued...

September 15, 2016 - Inside Mortgage Finance

First-Time GSE Homebuyer Loans Perform Better than Other Purchase Mortgages Despite Weaker Profile

Originations of mortgages to first-time homebuyers in recent years have performed better than other purchase mortgages securitized by the government-sponsored enterprises, according to an analysis by Moody’s Investors Service. The stronger performance of first-time homebuyers occurred even as purchase mortgages for repeat buyers tend to have stronger borrower characteristics. The rating service suggested that tighter underwriting coupled with borrower education and counseling have improved the performance of GSE first-time homebuyer mortgages. Moody’s said...

September 15, 2016 - Inside Mortgage Finance

HFSC Passes Dodd-Frank Replacement, Bill Would Foster Portfolio Lending, Make Mortgage Changes

The House Financial Services Committee this week marked up, mostly on party lines, a comprehensive alternative to the Dodd-Frank Act that would, among other things, create a legal safe harbor for mortgage loans that are originated by a lender and then held in portfolio on its balance sheet. Democrats unanimously opposed the bill and refused to offer a single amendment, continually railing against Wells Fargo and accusing the Republicans of wanting to take the nation “back to the regulatory Stone Age.” The bill passed...

September 15, 2016 - Inside Mortgage Finance

Correspondents Most Active in Conventional-Conforming Space, Brokers Gained Ground in Government Lending

Retail lending through brick-and-mortar branches and consumer-direct programs was the biggest production channel in conventional mortgage lending but had a somewhat smaller share in government-insured lending, according to an exclusive analysis by Inside Mortgage Finance. Retail production played a dominant role in the jumbo market, where it accounted for 79.3 percent of originations over the 18-month period ending in June 2016. Correspondent production played a meaningful role, accounting for 16.1 percent of jumbo originations, but brokers (4.6 percent) had a relatively thin share of the jumbo market. Brokers’ strength was...[Includes one data table]

September 14, 2016 - IMFnews

When it Comes to Refis, VA-Backed Mortgages Lead the Pack – By Far

There is no clear explanation as to why VA rates are lower than the competition, but some industry participants, including Tom Piercy of Incenter Mortgage Advisors, speculate prepayments might be the reason.

September 13, 2016 - IMFnews

Short Takes: Does Anyone Recall What Happened on Sept. 6, 2008? / The Second Coming of the GSEs / Well, At Least Bernie is Happy / Former GSE Exec Maloni Puts it in Perspective / Is $5,000 a Fair Price for Foreclosure Legal Work?

The GSE conundrum in perspective: "The mortgage finance system is working so consumers are somnambulant; media occasionally write about it, but don’t get fired up; courts don’t seem to be upset over unprecedented Treasury bullying and revenue abuse..."

September 9, 2016 - Inside FHA/VA Lending

FHA/VA: Financing of Choice for Purchase Borrowers in 13 States

Homebuyers in two housing markets encompassing 13 states relied more on FHA and VA than other types financing, according to a new industry study of new single-family homes started in 2015. A study by the National Association of Home Builders found, among other things, that government-backed purchase lending and other forms of non-conventional mortgage financing remained elevated in 2015. For example, homebuyers in the South Atlantic and West South Central regions favored FHA and VA loans over other types of home-purchase financing. States in the South Atlantic region include Delaware, Florida, Georgia, Maryland, North Carolina, South Carolina, Virginia, and West Virginia. Washington, DC, is also in this region. West South Central states are comprised of Arkansas, Louisiana, Oklahoma and Texas. Together, the two regions accounted for more than 26 percent and 21 percent of the ...

September 9, 2016 - Inside MBS & ABS

New Fannie, Freddie Refi Programs Will be ‘Credit Positive’ to GSE Risk-Sharing Deals, Moody’s Says

The new streamlined refinance programs for high loan-to-value loans to be rolled out by government-sponsored enterprises Fannie Mae and Freddie Mac next year are good news for market participants in their risk-sharing deals because they cut the risk of borrower default and the associated risk of investor loss, according to a recent report by analysts at Moody’s Investors Service. The programs are designed to provide much needed liquidity to borrowers with high LTV ratios who are current on their mortgage but can’t qualify for a more traditional refi. “The new programs are...

September 9, 2016 - Inside MBS & ABS

GSE Risk Sharing: Deep-Cover MI Proponents Suggest Pilot Program, Opponents Say MI Benefits Overrated

While many industry experts say Fannie Mae and Freddie Mac should explore deeper mortgage insurance coverage as an alternative form of credit-risk sharing, some say the role of private MIs is overrated. The Urban Institute recently published a paper advocating a broadening of the credit-risk transfer programs at the two government-sponsored enterprises to include private MI coverage down to the 50 percent loan-to-value ratio. The think tank also encouraged Fannie and Freddie to create a more transparent lender recourse program and to diversify their highly successful debt note CRT programs to provide investors more offerings with risk segmented by LTV ratio and credit scores. Although the Mortgage Bankers Association and U.S. Mortgage Insurers, the trade group that represents private MIs, have stumped...


After the November elections, how long will it take for a new Congress and White House to pass GSE reform legislation?

I’m confident a bill will be passed the first year.
2 to 3 years. GSE reform is complicated.
Sadly it won’t happen in a Clinton or Trump first term.
Not in my lifetime.

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