Fannie issued $167.49 billion in short-term debt through Aug. 31, compared to $550.47 billion for all of 2019. Meanwhile, its long-term debt issuance expanded to $165.72 billion from $21.55 billion.
The trade group reiterated that Fannie and Freddie should not be permitted to exit conservatorship until further systematic, wholesale and long-term reforms are made permanent.
Industry stakeholders said FHFA should find tremendous value in the CRT program as it reduces systemic risk by distributing risk across many investors and transactions.
Freddie told homeowners that, in addition to the traditional disaster relief options provided by the GSEs, they may be eligible for relief through COVID-related forbearance programs.
The council said any distress that affects the secondary mortgage market activities of the GSEs “could pose a risk to financial stability if those risks are not properly mitigated.”
When questioned about the steep fee the GSEs charge to buy early forbear-ance loans, the FHFA director turned the tables on the lawmakers: Why didn’t Congress pay for it in the CARES Act?
FHFA officers told the inspector general that they believed performing some of the required security assessments “was an inefficient use of agency resources.”
The Structured Finance Association said it is concerned FHFA believes that, if the GSEs have capital levels similar to banks, the need for an explicit guarantee will be eliminated.
RSS