The GSEs continued to reduce their footprint in global debt markets during the fourth quarter of 2012, with debt outstanding and issuance down from the previous quarter and from the same period a year ago. Fannie Maes, Freddie Macs and the Federal Home Loan Banks combined debt outstanding was $1.867 billion during the period ending Dec. 31, 2012, down 2.5 percent from the third quarter and down 11.6 percent from the fourth quarter 2011, while the GSEs issued a combined total of $598.8 billion in new debt during the fourth quarter.
According to an analysis by Fitch Ratings, the overall charges for a simple jumbo non-agency MBS across all note-holders would increase to between 6.3 percent and 8.2 percent under the new proposal.
Fannie Mae and Freddie Mac this week introduced another new, simplified loan modification program designed to help troubled borrowers avoid foreclosure and stay in their homes at a time when loss mitigation activity by the two government-sponsored enterprises appears to be losing steam. (Includes one data chart)
When Fannie Mae and Freddie Mac work with counterparties, they have contractual agreements that loans sold to them comply with federal and state laws governing the origination and servicing of mortgage loans.