One of these days, Fannie and Freddie will need to raise capital by selling stock. Rumor has it that institutional investors are already being courted, including Berkshire Hathaway.
For the third straight year, in 2018, marketplace lenders held the top spot in the unsecured personal lending space. Meanwhile the share of banks dropped to 28%.
REITs, which have become key investors in MBS and MSRs, may get another crack at FHLB membership if the Trump administration gets its way. The golden chalice: discount advances available via the borrowing window.
Might REITs regain access to the FHLB system after all? It’s hard to predict but Redwood Trust and others remain hopeful thanks to the recent Treasury blueprint on GSE reform.
An “explicit” guarantee on Fannie/Freddie MBS was once a non-starter with Republicans in Washington. But the Trump administration is unlike your grandfather’s GOP. Just maybe, an explicit guarantee might work.