Jump in GSE Buybacks in 3Q16 May Signal the End of an Era
December 22, 2016
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...