Since the fall of 2008, Treasury has controlled the senior preferred stock in Freddie and Fannie, making the U.S. government the de facto owner of the two - and the linchpin to the housing and mortgage markets.
With Fannie Mae and Freddie Mac set to lose their capital buffers in eight short months, industry trade groups, think tanks and policy wonks are churning out reform blueprints at warp speed these days even though Congress likely won’t act until sometime next year, if then. Last week, the Mortgage Bankers Association floated its plan to reconstitute the two government-sponsored enterprises – followed by several critiques, not all of them kind – and this week the Independent Community Bankers of America published its proposal. Both plans throw...
Bank of America has made a break from most of the other big banks in terms of sending conforming mortgages to the government-sponsored enterprises. Officials at the bank said BofA is retaining more of its GSE-eligible loans, though the strategy can result in short-term decreases to mortgage-banking income. “We believe retaining these mortgages will provide better economics over time, plus retention deepens our relationship with these customers,” Paul Donofrio, BofA’s chief financial officer ...
MUFG Union Bank of California, which relies heavily on jumbos, saw loan production fall on a sequential basis by just 4.4 percent, the best showing among the top 50, Inside Mortgage Finance found.
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