The concept of reducing Fannie Mae/Freddie Mac LLPAs on second homes and cash-out refis is being pushed by Barry Habib, a principal in MBS Highway, who was named to Fannie’s board this summer.

David Spector, chairman and CEO of Pennymac Mortgage Investment Trust, said execution in the non-agency market is currently superior to delivering the loans to the GSEs.

The total delinquency rate on FHA loans in Ginnie MBS hit 10.90% at the end of September, up 51 bps from the end of June.

The spec-pool share of new GSE MBS issuance hit 47.3% in the third quarter.

If Fannie capital had been at mandated levels, the enterprise would have had an annualized ROE of 10.3% in the third quarter.

The LLPA change, if it comes, would only apply to mortgages on second homes and cash-out refinances.

The FHFA chief urged investors to review the GSEs’ SEC filings to understand the risks involved.

The NAHB said its members agree that getting more homes built is essential, and the group is prepared to work with the administration to remove regulatory obstacles, ease material and labor shortages, and expand access to affordable financing to enable builders to construct more attainable, affordable housing.

During the third quarter of 2025, neither Fannie Mae nor Freddie Mac issued a single green MBS.

Trade groups say allowing the GSEs to fill the gap left when the Fed quit buying MBS in 2022 could lower mortgage rates as much as 30 basis points.