After warning the council about the risks posed by government money market funds, Calabria went on to point out that these funds have large exposures to Fannie Mae, Freddie Mac and the Federal Home Loan Banks.
Fitch said the deal comes with “an irrevocable and unconditional guaranty,” courtesy of the Development Finance Corp. That means the securities, and any obligations associated with them, enjoy the full faith and credit of the U.S. government.
Asked whether the administration would acquiesce on the changes, CHLA Director Scott Olson — a former denizen of Capitol Hill — said he’s “somewhere between hopeful and confident.”
The Department of Housing and Urban Development, VA, and the U.S. Department of Agriculture are expected to reveal additional plans in July, offering new payment reduction options designed to allow more homeowners to stay in their homes.
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