A working paper released by the National Association of Realtors at a conference in Washington, DC, this month makes a persuasive case that Fannie Mae and Freddie Mac should be restructured as strictly regulated, shareholder-owned utilities. Perhaps more important, the paper establishes an effective format for evaluating other proposals for GSE reform.

Despite a slow fourth quarter, 2018 turned out to be the most profitable year since 2013 for Fannie Mae and Freddie Mac. And, although only a fraction of the size of the GSEs’ single-family business, multifamily remained a bright spot. [Includes one data chart.]

In his testimony before the Senate Committee on Banking, Housing, and Urban Affairs last week, Mark Calabria, President Trump’s nominee to head the Federal Housing Finance Agency, reinforced expectations that, as director, he would begin the long-awaited recapitalization of Fannie Mae and Freddie Mac.

California-based Sabal Capital Partners, one of the earliest partners in Freddie Mac’s Small Balance Loan Program, broke a record this month when it sold the enterprise a portfolio of 39 small-balance loans worth $189 million. All the underlying properties are in East Harlem.

Freddie Mac announced late last month that it had closed a deal with RBC Capital Markets to create a $180 million low-income housing tax credit fund. The fund, Freddie’s fourth LIHTC deal since re-entering the market last year after a decade’s absence, has already made several investments.

Freddie Mac last week announced that Sara Mathew has been elected non-executive chair of the company’s board of directors. Mathew, who currently chairs the board’s audit committee, will replace Christopher Lynch, who’s term-limited out after 10 years on the board, six of them as chair.

Redwood Trust last week announced that it would invest as much as $78 million in a partnership seeking to acquire up to $1 billion in floating rate light-renovation whole loans from Freddie Mac. The California-based real estate investment trust says it has already funded the partnership to the tune of $20 million.

Investors Unite, a group of Fannie Mae and Freddie Mac shareholders seeking to reverse the so-called net profit sweep — the mechanism by which the Federal Housing Finance Agency sends all GSE profits to the Treasury as dividends — held a sort of figurative rally last week to celebrate a recent string of legal victories.

Fannie Mae and Freddie Mac issued a combined total of just $51.86 billion of single-family mortgage-backed securities in January, their lowest monthly production since February 2016. [Includes two data charts.]

The supply of Freddie Mac single-family mortgage servicing rights grew at more than twice the rate of increase in Fannie Mae product during 2018, according to a new Inside the GSEs analysis and ranking. [Includes two data charts.]