The recap and release of Fannie Mae and Freddie Mac could be a bonanza for investment banking/advisory firms that assist the government. There might be four contracts overall.
Ginnie Mae, the government guarantor that backs $2 trillion in mortgage assets, still doesn’t have a permanent president even though the election took place three years ago. Will anything change?
Presidential candidate Elizabeth Warren has flagged concerns about the issuer-pays model used by credit rating agencies for securitized products. She said the SEC hasn’t done enough to address the conflicts of interest tied to the model.
Some investors prefer buying non-agency mortgages via whole loan transactions rather than stocked in MBS. Whole loans offer better yields and more loan information.