Fannie and Freddie Place Their Hopes for Regaining Share On Primary Market Coming Back to Fixed-Rate Focus
May 11, 2006
Rather than chase the mortgage market into nonprime credit and nontraditional products, Fannie Mae and Freddie Mac appear content to peg their strategy for recapturing lost market share on a shift in the primary market back to their strength: fixed-rate mortgages. According to the Inside Mortgage Finance MBS Database, Fannie and Freddie have seen their combined share of new mortgage-securities production plummet in the past two years. After peaking at 70.4 percent in the refi…