The FHFA said it’s working with Fannie and Freddie to “develop processes to identify and align those enterprise programs, policies, and practices that could materially affect prepayments.”
Nine senators said they would work to invalidate any new rules issued by the CFPB if Leandra English prevails in her attempts to unseat and replace the bureau’s acting director, Mick Mulvaney...
A tiny portion of loans sold into Fannie Mae and Freddie Mac mortgage-backed securities trigger a buyback demand from either of the GSEs, and in most cases lenders are able to avoid an actual repurchase or indemnification. Lenders repurchased or provided other indemnification for $260.12 million of home loans during the third quarter of 2017, a 6.4 percent increase from the prior period, according to an Inside The GSEs analysis of quarterly disclosures made to the Securities and Exchange Commission. During the same period, Fannie and Freddie issued $223.6 billion of new single-family MBS. The third-quarter spike in buyback activity came all on the Freddie side of the market.
In roughly 30 days, Fannie Mae and Freddie Mac will see their capital buffers fall to zero, an event that has GOP legislators working feverishly over the past several weeks to come up with housing-finance reform legislation. In short, Republicans fear that in the event of a quarterly loss by one or both GSEs next year, these massive mortgage giants might need to tap a line of credit they have with the U.S. Treasury, which would result in another “taxpayer bailout” of the two. And since Republicans are in charge of both chambers of Congress, as well as the White House, they would get blamed. At least that’s how the situation was explained to Inside The GSEs.
RSS