The warning comes in the wake of a Government Accountability Office report identifying weaknesses in FHA’s oversight of HECMs, particularly in monitoring, performance assessment and reporting.
Keep in mind that, Ginnie MBS is back-stopped by the full faith and credit of the U.S. government. By comparison, Fannie Mae/Freddie Mac MBS carry an “implied” guarantee.
The lender argued that a financial institution that is subject to a pending enforcement action by an unconstitutionally structured agency is entitled to meaningful relief.
By now, everyone knows the Federal Housing Finance Agency plans to hire an investment banking firm to assist with recap and release plans, but what about the GSEs?
KBW this week significantly hiked its price target on Fannie/Freddie common to $3 and $4 a share, respectively. For years, KBW’s price target for GSE common was a mere $1.
Although Brian Montgomery has been sworn in, he still faces a hearing in the Senate. Meanwhile, the Senate’s time might be taken up with a possible impeachment trial…