The FHFA wants to place a volume cap on mortgages sold through the Fannie/Freddie cash window. An effort to boost lender securitizations or something else?
The market produced $42.61 billion of new ABS in the fourth quarter, a 38.7% decline from the previous three-month period. That brought year-to-date issuance to $202.02 billion, down 11.0% from 2019.
The concern centers on a clause that states beginning January 2022, the FHFA will cap the amount of mortgages any lender can deliver to the cash window at $1.5 billion over any four-quarter period.
The nation’s top six depositories funded a combined $139.3 billion of mortgages in the fourth quarter of 2020, down both sequentially and on an annual basis.
Chase is set to issue one of the largest post-2010 prime non-agency MBS with new production while Credit Suisse has a smaller non-QM deal with somewhat seasoned mortgages.
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