Depending on how you count, Fannie/Freddie loan guarantees in 2022 will either generate almost $30 billion in lifetime savings for the federal government or result in a $5.5 billion loss.
Federal Reserve Governor Michelle Bowman said the Fed’s asset purchases could end in mid-2022. The reason: The costs of quantitative easing may now outweigh the benefits.
LIHTC and GSE programs both use the same flawed system for determining whether a project is “affordable,” revealed David Brickman, former CEO of Freddie Mac.
Although the GSEs have for several months seen declines in the share of investor and second-home mortgage purchases, it remains to be seen whether lenders will continue to deliver these loans into the non-agency market now that the caps have been withdrawn. (Includes two data charts.)
FHFA announced the suspension of the caps on the GSEs’ purchase of second-home and investor-property mortgages on Sept. 14. By Sept. 15, the price of these loans jumped more than a percentage point.