KBW estimates that if the corporate tax rate falls, Fannie and Freddie, combined, would have to fork over to Treasury an estimated $13 billion to $19 billion…
“A significant reduction in the corporate tax rate would result in a significant net loss, and that could result in a loss for the year,” said Fannie CEO Timothy Mayopoulos…
Originations of higher-priced mortgages increased significantly in 2016 compared with the previous year, according to an analysis by Inside Nonconforming Markets of data from the Home Mortgage Disclosure Act. The analysis excluded government-insured mortgages, multifamily loans and home-improvement loans. Some $28.61 billion of non-government-insured higher-priced mortgages were originated in 2016, up 28.9 percent from the previous year ... [Includes one data chart]
There are many unpredictable variables and economic factors outside the control of the Federal Reserve, which makes it hard to project the impact of winding down the U.S. central bank’s historic investment in agency MBS. But economic experts at Fannie Mae are cautiously expressed anticipating greater volatility, an inevitable financial shock and potential changes in the Fed’s strategy as markets evolve.