Fannie-backed MBS, in general, trade better than Freddie participation certificates (PCs), which has resulted in guaranty fee pricing differentials between the two.
SIFMA noted that in recent years both the FHFA and Congress have increased the GSEs’ guarantee fees in an effort to reduce their market share and make non-agency MBS issuance more competitive.
The Structured Finance Industry Group this week proposed the first in a planned long line of standards aimed at increasing transparency for non-agency MBS investors and boosting new issuance. The first edition in the SFIG’s series of “green papers” covers certain representations and warranties, triggers for repurchase, due diligence and communication with investors. Richard Johns, SFIG’s executive director, said about 200 individuals from about 50 organizations involved in the non-agency MBS market have participated in Project RMBS 3.0. “The goal here is...
Fannie Mae and Freddie Mac are expected to pay some $5.6 billion to taxpayers based on “normal” second-quarter earnings that were not bloated by big-ticket tax breaks or large litigation settlements, the two government-sponsored enterprises announced this week. Once the two GSEs have made the latest Treasury payment in September, Fannie and Freddie will have returned about $218 billion to taxpayers for the approximately $188 billion in financial support the two firms received after being placed in government conservatorship in September 2008. Under the revised conservatorship agreement announced two years ago this month by the Federal Housing Finance Agency and the Treasury Department, any GSE net worth exceeding $3.0 billion is impounded...
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