Speaking at the MBA’s secondary and capital markets conference this week, Fannie and Freddie executives appeared to tailor their remarks to address the priorities of the new FHFA director.
If confirmed as Treasury’s head of domestic finance, Jonathan McKernan could have a say in whether the GSEs are released from conservatorship. If so, he may have to renounce an FHFA rule created when he was senior counsel at the agency.
Fannie’s Desktop Underwriter and Freddie’s Loan Product Advisor were both updated to include FHFA’s 2025 area median income figures. The changes affect eligibility for duty-to-serve and affordable housing programs.
Freddie’s guarantee book of business rose from $3.104 trillion at the end of 2024 to $3.115 trillion as of the end of March. Fannie’s fell from $3.622 trillion to $3.610 trillion. (Includes data table.)
FHFA Director Bill Pulte made some media appearances recently, explaining some of the actions he’s taking and detailing priorities involving the GSEs and Federal Home Loan Banks.
Critics say capital is not necessarily the main impediment to ending the conservatorship. A bigger problem is the lack of planning on what the GSEs should look like after they exit.
Mortgage professionals can use a free online tool from Fannie to get more accurate income calculations and benefit from rep and warrant relief for the loans they sell to the GSE.
Like most GSE reform plans, the hedge funder’s plan to privatize Fannie and Freddie starts with Treasury writing down its senior preferred shares and FHFA sharply reducing the capital requirements for the GSEs.
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