One industry lobbyist, requesting anonymity, noted that when it comes to a possible recapitalization-and-release plan for Fannie and Freddie, “Everything flows from the capital rule. This shows us the [recap and release] process will not go quickly.”
One Fannie/Freddie historian reminded us recently that there used to be a conforming loan limit for GSE multifamily loans. The big question: Why did it disappear?...
While most in the industry held back their comments, Milken Institute Director Eric Kaplan said the plan’s focus on capitalization of Fannie Mae and Freddie Mac makes it looks like the release of the GSEs is really in the cards.
“The QM patch expiration presents an opportunity for regulators to streamline certain rules to put the housing-finance sector on the best possible footing going forward,” Redwood said.