Rather than ending the net worth sweep outright and agreeing to write off some of its preferred shares, Treasury is essentially simply allowing Fannie Mae and Freddie Mac to continue their practice of retaining earnings.
Depository institutions saw their combined agency servicing shrink 2.5% from the third to the fourth quarter, squeezing their share of the market to 42.2%.
On the rural housing front, Freddie expects to increase its SFI purchase target from 3,600 to 3,900 loans in 2020 to as much as 4,800 units this year...
Issued in late November, the new FHFA regulatory framework mandates Tier I capital of at least 4.0% for Fannie and Freddie, a bar that some stakeholders believe is too high.
Questions posed by the FHFA include whether the GSEs should use appraisal waivers and how lenders might manipulate automated underwriting systems when seeking an appraisal wavier from the GSEs.