The nonprime mortgages held in portfolio by the government-sponsored enterprises continued to decline in 2017, according to an analysis by Inside Nonconforming Markets. And while the GSEs sold vintage non-agency mortgage-backed securities during the year, pre-crisis Alt A mortgages guaranteed by Fannie Mae and Freddie Mac are largely running off instead of being sold. Fannie and Freddie had a total of $108.23 billion in nonprime mortgage holdings ... [Includes one data chart]
According to their financial disclosures and company officials, both GSEs saw a sharp decline in the average guarantee fee they charged on new MBS issued during the fourth quarter…
Fannie Mae and Freddie Mac observers are scratching their heads about “minimum return on equity” requirements that the Federal Housing Finance Agency has imposed, somewhat mysteriously, on the two government-sponsored enterprises.