One of the best kept secrets in the servicing sector is a “bifurcated” mortgage program initiated by Fannie Mae that has been gathering momentum over the past six months.
Freddie filed repurchase requests on some $361.6 million of 2012 originations during the first quarter of this year, according to figures compiled by Inside Mortgage Trends.
The Congressman argues that if the two are not allowed pay down their draws from Treasury “then any future funds sent" to the U.S. should be reinvested in the housing market.
Private MBS investors will likely see reduced competition from the Federal Reserve later this year if the central bank begins to slow down its purchases of agency MBS, but there is also likely to be a sharp drop in new MBS supply at the same time. The Federal Open Market Committee made no changes in its policy of adding $40 billion a month to its massive $1.165 trillion portfolio of agency MBS, in addition to reinvesting payments from its agency debt and MBS holdings. It also promised to closely monitor economic and financial developments and stands prepared to increase or decrease its MBS purchases. But Fed Chairman Ben Bernanke later indicated...[Includes two data charts]
Fed Chairman Ben Bernanke indicated that the central bank is leaning toward scaling down its MBS purchases later this year, and that rapidly rising mortgage interest rates don’t pose a major threat to the fledgling housing recovery.
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