Wells Fargo last year wound up keeping almost $20 billion of new residential production its books instead of selling the loans to Fannie Mare and Freddie Mac.
MBS guaranty fees charged by Fannie Mae and Freddie Mac would not have to increase by much from current levels to shift risk to the private sector, according to a new analysis by Andrew Davidson & Co. However, if policymakers looking to reduce the market share of the government-sponsored enterprises want to expand credit availability beyond the tight standards in the GSE market, g-fees will have to increase significantly. Fannie Mae reported that the average effective g-fee in its third quarter 2012 business was 41.8 basis points, and the GSEs raised their fees by 10 bps during the fourth quarter of last year. A report this week from the Bipartisan Policy Center Housing Commission proposed...
The proposed “Public Guarantor” to replace the government-sponsored enterprises would not only provide an explicit backstop for qualifying MBS in a post-GSE world, it would also serve as a regulator of sorts under terms spelled out in a housing policy paper issued this week. The report by the Bipartisan Policy Center’s Housing Commission called for a “far greater role” for the private sector in the mortgage market, a continued but limited role for the federal government, the graduated elimination of Fannie Mae and Freddie Mac and reform of the FHA. The BPC’s plan calls for...
The GSEs continued to wrangle with seller/servicers over repurchase requests during the fourth quarter of 2012, but mostly over loans originated five years earlier.
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