GSE Performance

Browse articles from all of our Newsletters related to GSE Performance.

August 28, 2015 - Inside The GSEs

MBA's Stance On GSE Reform Viewed As Evolving

Mortgage Bankers Association President David Stevens set off a firestorm of reactions after publishing a piece earlier this week regarding the MBA’s stance on GSE reform. Some in the industry accused Stevens of “flip flopping” when he said that he supports reforming Fannie Mae and Freddie Mac as opposed to eliminating them altogether. But Stevens was adamant in defense of the MBA’s position and took to Twitter stating, “It’s been our position for 2+ years.” Stevens noted in the article that conservatorship is not a long-term solution, and added that in the current state it may be the riskiest position of all. He said the GSEs don’t have the capital to withstand another housing downturn and taxpayers don’t want to be on the hook if the companies falter.

August 28, 2015 - Inside The GSEs

The Recent (Unexpected ) Drop in Rates Could Spell Large Hedging Losses for the GSEs

Generally speaking, declining interest rates are welcomed by most mortgage market participants – unless the drop is both precipitous and unexpected, which is exactly what occurred over the past 10 days, thanks to the worldwide stock market carnage. As the weekend approached, the yield on the benchmark 10-year Treasury bond was at 2.17 percent, but earlier in the week – while stocks sold off – the yield fell to as low as 1.90 percent. Fannie Mae and Freddie Mac watchers are now wondering if given the steep (and unexpected) decline in rates, perhaps the two government-controlled mortgage giants will report large hedging losses for the third quarter.


During the first half of 2015 all residential lenders originated a better-than-expected $805 billion of home mortgages, according to Inside Mortgage Finance. What do you expect in the second half?

Just as good. We like what we’re seeing.
Better. Applications are strong.
Worse. We’re worried about rates, seasonality.
A lot worse. The fourth quarter could be a killer.

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