Browse articles from all of our Newsletters related to GSEs.

January 19, 2017 - IMFnews

Treasury Nominee Mnuchin Shoots Down GSE ‘Recap and Release’ Concept

In general, the Treasury nominee said his goal is to find a “bipartisan solution” to Fannie and Freddie...

January 19, 2017 - Inside Mortgage Finance

Fannie and Freddie are About to Provide a Revenue Gift to the Trump Administration

Thanks to stellar fourth quarter MBS issuance – coupled with higher interest rates at Dec. 31 – Fannie Mae and Freddie Mac are likely to report their best quarterly earnings of 2016, money that will go directly into the U.S. Treasury. According to interviews conducted by Inside Mortgage Finance this week, the general consensus among observers is that the two government-sponsored enterprises will post a combined profit north of $5.5 billion. In 2016, the two guaranteed...

January 19, 2017 - Inside Mortgage Finance

Trump’s Plans for Corporate Tax Reduction Could Prompt Treasury Draw by GSEs and Spur GSE Reform Activity

Legislative reform of the government-sponsored enterprises doesn’t appear to be a high priority for Republican lawmakers, but President-elect Donald Trump’s plans to reduce the corporate tax rate could inadvertently prompt some GSE reform activity, according to industry analysts. As of the end of the third quarter of 2016, Fannie Mae and Freddie Mac had a combined $53.80 billion in deferred tax assets. The DTAs result from differences between the carrying amounts of existing assets and liabilities under generally accepted accounting principles and their respective tax bases. The DTAs are...

January 19, 2017 - IMFnews

If Trump Cuts Corporate Taxes, Fannie and Freddie Might Need a Treasury Draw

Antonio Weiss, counselor to the secretary of the Treasury Department, cautioned that any reduction to the corporate tax rate could prompt a draw from Treasury funds by the GSEs.

January 18, 2017 - IMFnews

Real Estate Investors Get Invited to Fannie Mae Meeting. The Topic: SFR Loans

The invitation to the SFR meeting provided some hope to real estate investors, who have a hard time obtaining financing...

January 18, 2017 - IMFnews

GSE MBS Volume Hit a 3-Year High in 2016

Although heavy refinancing activity accounted for the fourth-quarter uptick in MBS issuance, 2016 was also a strong purchase-mortgage market…

January 17, 2017 - IMFnews

Correspondent Share of GSE Business Edged Higher in 4Q16; Brokers Slumped

United Shore Financial Services was the top seller of broker loans by a wide margin, with $5.83 billion in fourth-quarter activity, more than twice its nearest competitor…

January 13, 2017 - Inside The GSEs

GSE Roundup

Moody’s says HAMP Replacement Program Credit Neutral for CRTs. The GSEs’ new Flex Modification foreclosure prevention program that will replace the expired Home Affordable Modification Program has a neutral credit impact on GSE risk-risk transfer deals. Moody’s said that the volume of modifications and the re-default performance under the Flex program will be comparable to modification levels and performance under the current programs. The firm also noted that the new program will not result in increased modification volume. Servicers have until Oct. 1, 2017, to implement the new program. Freddie’s Recent ACIS Transaction. Last week, Freddie Mac announced its last Agency Credit Insurance Structure of 2016 in the form of a $285 million offering. The GSE said it...

January 13, 2017 - Inside The GSEs

Developers Seek Ideas for Fannie Headquarters Once Vacated

As Fannie Mae prepares to vacate its iconic headquarters with a move to downtown Washington in 2018, the buyers of the colonial-style building are mulling over plans on what to do with the four-story, close to 250,000 square-foot property. Roadside Development, in a partnership with Sekisui House, bought the building situated on about 10 acres last month.Before making plans on what to do with the property, Roadside is seeking public input in the form of community meetings and online outreach. Roadside founding Principal Richard Lake said the firm wants to sit with the community and spend time with them to get ideas, just as they did in other nearby development projects.

January 13, 2017 - Inside The GSEs

IG: FHFA Should Better Manage Nonbank Servicer Risks

A recent audit showed that the Federal Housing Finance Agency needs to do a better job at managing nonbank risks such as mortgage servicing transfers. In response, the FHFA said it will finalize a risk-based proposal to examine how well the GSEs manage that and other risks by the end of this month. The FHFA’s Inspector General said that the agency has not made sure that both Fannie Mae and Freddie Mac are tackling potential risks. The IG noted that out of three advisory bulletins issued that addressed nonbank servicer risk, one of the GSEs only complied with one of the bulletins.The heavily redacted report doesn’t mention which GSE failed to comply with the bulletins, but a...

January 13, 2017 - Inside The GSEs

Treasury Dept. Talks Housing Progress and New Goals

As the guard prepares to change in a week, Treasury Secretary Jacob Lew said in an exit memo released last week that only legislation can comprehensively address “the ongoing shortcomings of the housing finance system.” In the memo, Lew documents the Treasury’s progress over the last eight years and outlines his goals for the future of the department. He said that fixing the housing finance system remains the major unfinished piece of work of post-financial crisis reform. While he said the housing market has improved, Lew acknowledged that many homeowners and neighborhoods continue to struggle. “A starting point for such legislation should be the principles President Obama laid out in 2013, which stressed a clearly-defined role for the...

January 13, 2017 - Inside The GSEs

FHLBanks to Expand Diversity and Inclusion Program, Other Changes

The Federal Home Loan Banks Office of Finance announced changes this week to some of their debt programs and said they will allow more securities dealers to participate in their diversity and inclusion program. The FHLBank is planning to incorporate other aspects of diversity, beyond what’s already been established, in order to help expand the scope of dealers eligible to participate in the program. The first change went into effect Jan. 10 when the minimum new issue par amount for negotiated callable bonds decreased. That number will drop from $15 million to $10 million when diversity and inclusion dealers participate in the underwriting group.

January 13, 2017 - Inside The GSEs

Fannie Mae Makes Changes to Simplify Investor Reporting

Fannie Mae is eliminating the mortgage-backed securities call-in requirement in preparation for the upcoming integration with the Common Securitization Platform. The change is part of several modifications to the GSE’s investor reporting requirements that servicers must implement by Feb. 1 when reporting borrower activity. The GSE referred to the MBS call-in as a “non-industry standard and redundant practice” that requires servicers to report their monthly pool balances for MBS swaps and loan activity data reports. In addition to preparing servicers for when Fannie integrates with the CSP, the change will help simplify policies and procedures. “Fannie Mae can rely on existing loan level data from servicers to drive security balance processing. Servicers will no longer have...

January 13, 2017 - Inside The GSEs

Real Estate Investors Optimistic About GSE Quarterly Meeting

Fannie Mae invited several real estate investors to its first quarterly meeting of the year this month to discuss single-family rental loans. Tom Wilson of Wilson Investment Properties and Bruce Norris of the Norris Group attended and spoke from the investor’s perspective on single-family rental loans, which have become harder to obtain since the housing downturn. Wilson said that as a result it’s been more difficult for investors and landlords to be “economically motivated” to provide sufficient housing. Discussions at the meeting with the two California-based real estate investors centered on Fannie’s limit on the number of loans to a...

January 13, 2017 - Inside The GSEs

Investors Unite Hopes Privatization Leads to Shareholder Fairness

With increased talk of privatizing Fannie Mae and Freddie Mac, Investors Unite wants reassurance that shareholders will be treated fairly. The GSE shareholders rights trade group said, “Now everybody is talking about ending the conservatorship,” in a recent blog posting. While that may be an exaggeration, since the presidential election there has been a renewed interest in bringing the GSEs out of its eight-plus years conservatorship, where they’ve been since September 2008. Recent talks began with and snowballed after Treasury-secretary designee Steve Mnuchin said that getting the GSEs out of government control would be a top priority for the new presidential administration. And Mnuchin said that he plans to do this “reasonably fast.”

January 13, 2017 - Inside The GSEs

GSE Reform Outlook Optimistic, Questions Remain

Although the question of when the conservatorship status of the GSEs will be resolved is still up in the air, a new administration has many speculating that change is on the horizon for Fannie Mae and Freddie Mac. The November election gave Republicans both houses of Congress and the executive branch. This seemed to lend itself to more talks on when and how to reform the GSEs as they approach close to a decade in conservatorship. But, while the sentiment to do something is apparent, agreeing on the best path forward is a different story. And, as in the past, there is no shortage of competing thought processes and proposals.

January 13, 2017 - Inside Mortgage Trends

Correspondent Share of GSE Business Edged Higher in 4Q16, Brokers Slumped

Correspondent-originated mortgages accounted for 30.7 percent of home loans delivered into Fannie Mae and Freddie Mac mortgage-backed securities during the fourth quarter of 2016, according to a new analysis from Inside Mortgage Trends. Lenders sold $90.96 billion of correspondent-originated loans to the two government-sponsored enterprises, an 11.6 percent increase over the third quarter. The volume of retail originations rose 3.6 percent in the fourth quarter ... [Includes two data charts]

January 13, 2017 - Inside The GSEs

Fannie Gained Share in Surging GSE 1-Family Business of 2016

Heavy refinance activity at the end of the year lifted single-family business at Fannie Mae and Freddie Mac to a three-year high in 2016, according to a new Inside The GSEs analysis and ranking. The two firms guaranteed $973.72 billion of single-family mortgage-backed securities during 2016, up 18.1 percent from the previous year. That included a 5.7 percent increase from the third to the fourth quarter that was fueled by a 24.5 percent jump in refi loans delivered into new GSE MBS. While both companies saw solid gains from 2015 activity, Fannie’s 23.3 percent increase was more than double the 11.0 percent rise in Freddie volume. [includes two charts]

January 13, 2017 - Inside MBS & ABS

Basel Capital Requirements’ Impact on Non-Agency MBS Activities Uncertain, According to GAO

Capital requirements regarding bank holdings of non-agency MBS increased significantly after federal regulators implemented Basel III reforms in 2014. And while banks have largely been reluctant to re-enter the market for non-agency MBS issuance, a recent report by the Government Accountability Office suggests that the impact of bank involvement in the non-agency MBS market is unclear. The GAO was asked to explain how capital requirements for a mortgage depend on how the loan is financed and how the requirements have changed since the financial crisis. The report was requested by Sen. Richard Shelby, R-AL, who until recently was the chairman of the Senate Committee on Banking, Housing and Urban Affairs. The GAO noted...

January 13, 2017 - Inside MBS & ABS

The Outlook for GSE Reform Brightens, But When and How is a Different Story

Change in the political balance in Washington that put the GOP in control of both houses of Congress and the executive branch has fueled speculation that something will finally be done to resolve the conservatorships of Fannie Mae and Freddie Mac. As in the past, there is no shortage of competing proposals. At an Urban Institute seminar this week, Rick Lazio, former Republican congressman from New York, said...

January 13, 2017 - Inside MBS & ABS

Fourth-Quarter Slump in New GSE Credit-Risk Transfers Leaves 2016 With Small Increase from Previous Year

Fannie Mae and Freddie Mac last year issued a combined $12.93 billion of debt notes that pay investors based on the performance of reference pools, according to a new Inside MBS & ABS analysis of their credit-risk transfer programs. That was up just 2.8 percent from the 2015 volume of new issuance in Fannie’s Connecticut Avenue Securities program and Freddie’s Structured Agency Credit Risk program. It brought total issuance in the two platforms, which started issuance in late 2013, to $38.08 billion. Interestingly, total new single-family MBS production by the two government-sponsored enterprises was...[Includes one data table]

January 12, 2017 - Inside Mortgage Finance

Securitization of Private MI Loans Declined In 4Q16 Despite Jump in Insured Refi Loans

Lenders delivered $68.26 billion of single-family loans with private mortgage insurance coverage, including modified loans, into Fannie Mae and Freddie Mac mortgage-backed securities during the fourth quarter of 2016, according to a new Inside Mortgage Finance analysis and ranking. Fourth-quarter private MI activity for the two government-sponsored enterprises was down 10.1 percent from the previous quarter. Overall, Fannie/Freddie single-family MBS production was up 5.7 percent in the fourth quarter. The drop in MI-insured business at the two GSEs tracked...[Includes two data tables]

January 12, 2017 - IMFnews

FHFA to Step Up Pressure on Fannie and Freddie to Manage Nonbank Servicer Risks

The new FHFA IG report is heavily redacted…

January 12, 2017 - IMFnews

Securitization of Private MI Loans Declined in 4Q16; Full-Year Numbers Look Good

The GSE figures suggest that private MIs saw a measurable drop in new insurance written in the final three months of 2016, but ended the year with a significant increase in volume compared to 2015.

January 11, 2017 - IMFnews

Treasury Nominee Mnuchin Owns a Stake in Fannie & Freddie (Indirectly)

According to his financial disclosure form, Mnuchin lists the value of his Advantage stake at $500,001 to $1 million.

January 6, 2017 - IMFnews

What We’re Hearing: What’s Up with Walter Investment? / MSR ‘Mark-up’ Mania / Rates Heading South, a Bit / Layoff Rumors and Actual Layoffs / Bad News for GSE ‘Recap and Release’?

With rates falling again, lenders may be rethinking any planned layoffs...

January 5, 2017 - IMFnews

Final GSE MBS Tally for 4Q16: Just Shy of $300 Billion; Best Quarter Since 2Q13

Fannie Mae’s MBS issuance in 2016 was up 23.3 percent from the previous year…

December 29, 2016 - IMFnews

To Privatize (or Not) Fannie and Freddie, That is the Question

Tim Howard, a former Fannie Mae CFO, called Mnuchin’s comments “a welcome reset…”

December 28, 2016 - IMFnews

FHFA IG Notes Lack of Transparency in CSP Costs

Instead, the FHFA only disclosed specific CSP cost data once – in a September 2015 status report…

December 27, 2016 - IMFnews

Treasury Department Officials: Obama Supports ‘Explicit’ Guaranty on a ‘Defined Class’ of MBS

Some GSE observers believe an “implicit” guaranty is the same thing as an “explicit” one…

December 27, 2016 - IMFnews

Is it the End of an Era for GSE Loan Buybacks?

Excluding legacy-related buybacks, total GSE seller repurchases would have been down 9.9 percent…

December 22, 2016 - Inside The GSEs

GSE Roundup

FHLBank Topeka President to Retire. The Federal Home Loan Bank of Topeka announced on Dec. 20 that Andrew Jetter, president and CEO, will begin serving as senior advisor on Jan. 1, 2017, until his retirement date in the first quarter of 2017. Mark Yardley, executive vice president and chief risk officer, will serve as interim president and CEO until a new one is appointed. CBO Suggests Higher G-Fees, Lower Loan Limits. The Congressional Budget Office is looking for ways to reduce the budget impact of government-backed mortgage programs and recommends that Fannie Mae and Freddie Mac increase their guarantee fees and/or significantly lower their loan limits.

December 22, 2016 - Inside The GSEs

Fannie Mae’s ‘Day 1 Certainty’ Now In Effect in Desktop Underwriter

Fannie Mae’s Desktop Underwriter has been updated this month to include an employment and asset verification service under its Day 1 Certainty initiative announced in October. Day 1 was created to alleviate buyback fears on some loan components for lenders using its underwriting and appraisal tools. The GSE said that lenders would be relieved from most representations-and-warranty risk when it comes to verifying a borrower’s income, assets and employment. When a lender opts in to use the DU validation service, Fannie said that DU will use third-party vendor data to perform calculations and validate information entered by the lender.

December 22, 2016 - Inside The GSEs

FHFA Final Rule Allows FHLBanks To Transfer MSR to Nonmembers

The Federal Housing Finance Agency published a final rule this week allowing the Federal Home Loan Banks to transfer mortgage servicing rights on Acquired Member Assets to any institution, including a nonmember and nonbank. The Dec. 19 final rule reorganizes much of the current regulation governing the FHLBanks’ AMA programs and makes it easier for the banks to take on new business activities. The change was made, in part to recognize the evolving market landscape where a good amount of servicing is being done by nonbanks. The provision noted that any such transfer cannot result in the AMA loan failing to meet any other AMA requirement, including the credit enhancement.

December 22, 2016 - Inside The GSEs

Two House Bills Push to Expand GSE Credit-Risk Transfers

Two House bills introduced last week focus on making sure Fannie Mae and Freddie Mac broaden their scope of credit risk-sharing transactions through pilot programs and the use of deeper mortgage insurance coverage. The “Taxpayer Protections and Market Access for Mortgage Finance Act of 2016” would require the Federal Housing Finance Agency to push the GSEs to transfer at least 400 basis points of their total risk. Meanwhile, the “Moving Housing Forward Act” would set up a system for Fannie and Freddie to sell off some of the “catastrophic” risk retained by the GSEs on mortgage-backed securities issued in the to-be-announced market.

December 22, 2016 - Inside The GSEs

The ‘To Privatize or Not to Privatize’ Fannie, Freddie Debate Continues

Whether to privatize Fannie Mae and Freddie Mac continues to be a topic up for debate ever since Steven Mnuchin, president-elect Donald Trump’s pick for Treasury secretary, said getting the GSEs out of conservatorship is a priority. This week the Community Home Lenders of America applauded Mnuchin’s recent comments about promptly returning Fannie and Freddie to the private sector. The group told President-elect Trump that he should permit the GSEs to retain a capital buffer and submit a recapitalization plan to end their conservatorship and re-privatize them. In the letter, which included other recommendations of what should be done in Trump’s first 30 days, the CHLA noted that because...

December 22, 2016 - Inside The GSEs

FHFA IG Report Notes Lack of Transparency in CSP Cost, Risk

The Federal Housing Finance Agency agreed to disclose the total cost of the common securitization platform after a Dec. 15 audit by the FHFA Office of Inspector General revealed issues in transparency. The auditors said that while the FHFA committed to be transparent in its development of the multiyear project in 2014, the FHFA has not disclosed detailed costs or associated risks in its public reports. Instead, it only discloses the costs incurred though mid-2015. FHFA only disclosed specific CSP cost data once in a September 2015 status report, in which it announced that, from 2012 through mid-2015, the GSEs spent $146 million to develop the actual CSP platform. Then, their 2015 10-Ks revealed the amount increased to $218 million by year-end 2015.

December 22, 2016 - Inside The GSEs

Freddie Debuts Credit Risk-Transfer Focused on Seasoned Loans

Freddie Mac this week issued a new risk-sharing transaction backed by seasoned mortgages. The Seasoned Credit Risk Trust 2016-001 is comprised of all modified, seasoned reperforming first-lien residential mortgages funded by the issuance of asset-backed certificates totaling $934 million. The SCRT securitization program is a key part of Freddie’s efforts to reduce less liquid assets in its mortgage-related investments portfolio and shed credit and market risk. The GSE announced in July that it would be expanding its reperforming loan program by introducing the seasoned loans. This includes option adjustable-rate mortgages as well as loans that were originally option ARMs but have been modified through a Home Affordable Refinance Program or other modification.

December 22, 2016 - Inside The GSEs

The 3Q16 Tally: FHLB Advances Up 19 Percent Year-Over Year

Member institutions of the Federal Home Loans Bank system had outstanding advances of $541.8 billion at Sept. 30, a slight sequential decline, but a 19.0 percent improvement from the same period a year ago, according to analysis by Inside The GSEs. The FHLBs said the growth in advances was primarily driven by higher demand from larger members. The megabanks, not surprisingly, continued to be the biggest clients of the system with JPMorgan Chase leading the pack at $79.5 billion worth of advances, followed by Wells Fargo ($68.7 billion), Citibank ($31.5 billion), PNC Bank ($17.1 billion) and Capital One ($16.3 billion).

December 22, 2016 - Inside The GSEs

FHFA’s Flex Modification to Replace Expiring HAMP Program

With the Home Affordable Modification Program expiring in about a week, Fannie Mae and Freddie Mac recently introduced the Flex Modification foreclosure prevention program to take its place in helping delinquent borrowers get back on their feet. The Federal Housing Finance Agency said that the new program is based on lessons learned from loan modification programs created during the housing crisis. The Flex Modification is a hybrid of three different types of programs, including HAMP. “The Flex Modification program also reflects input received over the course of extensive engagement with lenders, mortgage insurers, consumer advocates, and other stakeholders,” said FHFA Deputy Director Sandra Thompson, adding that by avoiding...

December 22, 2016 - Inside The GSEs

FHFA Needs Stronger Supervisory Standards, Says the OIG

The Federal Housing Finance Agency came up short when it comes to supervising the GSEs to ensure a “safe and sound operation,” according to a Federal Housing Finance Agency Office of Inspector General report released late last week. The IG also suggested that the FHFA follow the lead of other federal financial regulators with stronger supervisory standards including the Federal Reserve System and the Office of the Comptroller of the Currency. “Among our findings was that FHFA had difficulty completing its planned targeted examinations over four supervisory cycles from 2012 through 2015 and that the number of targeted examinations planned and completed during each supervisory cycle has fallen since 2012 for Freddie Mac and has diminished significantly for Fannie Mae,” said the IG.

December 22, 2016 - Inside The GSEs

With Mulvaney and Mnuchin, is a Deal with GSE Shareholders A Strong Possibility?

One of the most speculative stock bets out there – buying shares in Fannie Mae and Freddie Mac – is looking more like a sure thing these days, thanks to the recent pick of Mick Mulvaney, R-SC, to head the Office of Management and Budget in the new Trump administration. At least that’s how some industry officials and market watchers view it, including the Washington-based research firm Cowen & Co. In a report issued earlier this week, Cowen analyst Jaret Seiberg called the choice of Mulvaney for OMB chief “the most bullish sign yet that the Donald Trump administration will favor a solution to housing finance reform that includes a continued role for Fannie and Freddie.”

December 22, 2016 - Inside The GSEs

FHFA’s Duty-to-Serve Gives Credit for MH Chattel Loans

In its much anticipated duty-to-serve final rule issued last week, the Federal Housing Finance Agency gave the green light for Fannie Mae and Freddie Mac to begin pilot programs for manufactured housing “chattel loans.” Although duty-to-serve was mandated eight years ago to make sure the GSEs support three underserved markets, (such as manufactured housing,) it was never implemented. The other markets are affordable housing preservation and rural housing. A proposed rule was issued in December 2015 and it’s taken a year to issue the final rule. The FHFA sifted through hundreds of comments on the proposed rule earlier this year, most focusing on the need for greater GSE support when it comes to manufactured housing lending.

December 22, 2016 - Inside The GSEs

Jump in GSE Buybacks in 3Q16 May Signal the End of an Era

A sudden increase in seller repurchases during the third quarter of 2016 likely represents the dying gasp of a controversial period in the relationships of Fannie Mae and Freddie Mac with their sellers. A new Inside The GSEs analysis of repurchase activity disclosures made to the Securities and Exchange Commission shows a 31.5 percent jump in buybacks and other indemnifications from the second quarter. Seller repurchases totaled $328.9 million during the third quarter, reversing what had mostly been a steady decline since mid-2014. But a third of the industry-wide total was at Bank of America, where GSE repurchases jumped more than seven-fold from the second quarter to $109.6 million...

December 22, 2016 - Inside The GSEs

GSE Scorecard Includes Review of Alternative Credit Assessment

Fannie Mae and Freddie Mac are expected to closely examine the mortgage servicing business model and wrap up their analysis of alternative credit scoring options in 2017, according to the Federal Housing Finance Agency’s “scorecard” for the GSEs, which outlines specific priorities for the duo. Access to credit has been a much-debated topic of late, and many have called for the GSEs to explore alternative models to the traditional FICO scoring system. Industry insiders argue that the GSE credit profile has remained elevated even though there’s been a significant drop in seller repurchase risk and the housing market has recovered. Under its goals of increasing access to credit, which include access for underserved...

December 23, 2016 - Inside Mortgage Trends

Jumbo Is Most Retail-Focused Market Segment

Mortgage lenders that generate a lot of jumbo home loans tend to rely heavily on their retail production platforms, while third-party originators play a bigger role in agency-eligible production. That’s one finding from an Inside Mortgage Trends analysis of exclusive survey data collected by Inside Mortgage Finance. Lenders participating in the survey reported that 80.3 percent of their third-quarter jumbo production came through their retail platforms ... [Includes two data charts]

December 22, 2016 - IMFnews

Freddie Issues its First CRT Securitization Backed by Seasoned Mortgages

The mortgages in the CRT deal have seasoned for an average of 10 years and are serviced by Select Portfolio Servicing.

December 22, 2016 - IMFnews

CBO Says Fannie and Freddie Should Raise G-Fees

Reducing subsidies also would help renew private sector participation in the secondary market, the Congressional Budget Office believes…

December 19, 2016 - IMFnews

Securitization Rates Jumped Higher in 3Q16

For the first nine months of 2016, the securitization rate was 67.7 percent, Inside MBS & ABS found…

December 19, 2016 - IMFnews

A Bullish Sign for Fannie and Freddie? Rep. Mulvaney as Trump’s OMB Director?

Treasury controls the senior preferred stock of the GSEs. The junior preferred and common continues to trade in the over-the-counter market and through private transactions. The latter two classes of stock are considered speculative in nature.


HUD has announced a 25 basis point cut in FHA premiums, which is slated to take effect in late January. Is your lending shop for or against a cut in FHA premiums?

For. It should help lending volumes.
Against. The private MI sector should take on this risk, not the government.
Too early to say.
I believe the new White House may scuttle the idea so it doesn’t matter.

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