Many of those green loans will still be eligible for purchase by the GSEs. Social bonds appear unaffected.

The Structured Finance Association says the GSEs should be able to accept multiple credit scores on a single application and disclose that information to MBS investors.

Testifying before the House Financial Services Committee this week, Federal Reserve Chair Kevin Warsh said any changes to monetary policy — including the Fed’s balance sheet — will be made transparently and communicated in advance to the market.

While FICO and VantageScore debate whose new credit score model performs best, industry insiders say the transition to new scoring models may take years.

In May, the combined retained mortgage portfolios of Fannie Mae and Freddie Mac saw their first monthly decline in more than a year.

SFA and other trade groups are seeking major changes to the re-proposed bank capital requirements. MBA raised concerns that non-agency MBS would receive more favorable capital treatment than GSE MBS.

Most analysts say that higher inflation means rate cuts are off the table for Fed Chair Kevin Warsh, even though President Trump still says he still wants lower rates.

A property law expert said securitizing real property interests encourages home price inflation.

Economists note that the pricing of mortgage credit risk depends not only on the quality of the underlying mortgages but also on who ultimately bears that risk.

Although President Trump directed the GSEs to purchase an additional $200 billion in agency MBS, they do not appear to be on track to accomplish that by year end.