Freddie announces a $1.3 billion Seasoned Loans Structured Transaction; Fannie prices a $1 billion REMIC deal; Freddie launches a new product to address aging housing supply; CEO Layton’s last week at Freddie.
The new transaction will offer LIHTC lenders an additional source of liquidity in a tight market. A San Francisco transaction tests the waters to see if the new security floats.
Fannie and Freddie continued to meet FHFA's strategic goals: maintaining credit access, preventing foreclosures, reducing taxpayer risks and building securitization infrastructure.
As usual, the Trump administration’s proposed annual budget appears to be dead on arrival. It simply steps on too many legislative toes. Among the issues the budget will face is how Congress reacts to its treatment of Fannie Mae and Freddie Mac.
Freddie Mac will restructure all future credit-risk transfer offerings through its flagship Structured Agency Credit Risk program as real estate mortgage investment conduits, Kevin Palmer, senior vice president for single-family credit risk transfer, said.
The Current Expected Credit Losses standard, a new accounting protocol expected to go into effect in 2020, could have an outsized impact on Fannie Mae and Freddie Mac, according to Rep. Blaine Luetkemeyer, a prominent Republican on the House Financial Services Committee.