Mortgage companies that fall under the heading “real estate credit” actually cut 300 employees during the month, leaving the sector with 211,700 full-timers.
CHLA lists four specific concerns about the proposed capital rule, including a complaint that a 25 basis point “add on” (based on UPB) is too “severe.”
If Fannie and/or Freddie have a negative net worth, investors wouldn’t buy their MBS and if investors don’t buy their MBS we would have financial Armageddon…