The Trump administration late this week published its thoughts on ending the conservatorships of Fannie Mae and Freddie Mac, aiming to reduce their role in the housing-finance market – while providing an explicit U.S. guarantee on conventional MBS.
MBS guarantee fees currently charged by Fannie Mae and Freddie Mac are at levels sufficient to meet capital requirements recently proposed by the Federal Housing Finance Agency, according to industry analysts. The proposal could also bring attention to cross-subsidization in g-fee pricing, especially under a new FHFA director.
Ginnie Mae will be ramping up its efforts over the next three years to ensure issuer liquidity by expanding the supply of stable capital to support mortgage servicing rights and to strengthen oversight of counterparty risk.