New mortgage reform legislation expected soon to be dropped by a senior House Republican is all but certain to go nowhere this year, but having a bill on file and in hand is a necessity in order for GOP hawks to keep their voice in the conversation on government-sponsored enterprise reform, say industry observers. By the end of next week, House Financial Services Committee Chairman Jeb Hensarling, R-TX, will introduce his long-awaited housing reform legislation, sources say. Details of the bill remain sketchy, but it’s to include a complete wind-down of Fannie Mae and Freddie Mac, with only a limited federal support for the mortgage market going forward, most likely housed within the FHA. Hensarling’s legislative effort has been overshadowed...
As reported by Inside MBS & ABS earlier in the year, the two GSEs are sitting on large unrealized gains on some of their MBS holdings, including non-agency.
The suit was filed in December 2012 on behalf of hundreds of thousands of investors who bought stock in an offering by Fannie in May 2008, four months before the GSE was taken over by the government.
Freddie Mac is rolling out a new version of an old mortgage security product designed to distribute the credit risk of borrowers paying back their mortgages to the private markets. The government-sponsored enterprise has begun marketing a new product, the Structured Agency Credit Risk security, which is designed to lay off credit risk to the private capital market on a scalable basis without impacting the TBA market or increasing counterparty risk. Freddie attempted a similar product in 1998 before deciding it was a failure. A Freddie spokesman said...
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