The Mortgage Bankers Association wants to make sure that Fannie Mae and Freddie Mac aren’t infringing on the primary market as they take on new technology-based mortgage initiatives. The MBA noted that the “bright line” between the primary and secondary markets is crucial.For example, the trade group expressed some concern that Fannie’s Day 1 Certainty initiative is the type of program that may have unintended consequences on the primary market. Officials with the MBA told Inside The GSEs that Day 1 Certainty’s roll-out relied on a single vendor for each component, even though the technology was not new. “Several other vendors offered similar products,” the group noted.
The Federal Home Loan Bank of Seattle lost an appeal in an MBS case against Barclays Capital this week in which it claimed the investment banker made false statements or left out certain facts about the securities it sold in 2008. But the Court of Appeals of Washington State ruled that theFHLBank was fully aware of what it was buying at the time.
In roughly 10 business days, Fannie Mae and Freddie Mac – which guarantee half of all mort-gage debt in the U.S. – will run out of capital unless their regulator at the Federal Housing Finance Agency does something about it.
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