Both GSEs posted their highest monthly volume of single-family MBS issuance since January 2017. Purchase-mortgage and refinance business rose significantly.
The successful launch of the single security — more than $9.5 trillion in UMBS has traded through the end of July — may pave the way for broader housing-finance reform, according to researchers at the Urban Institute.
The trade group last week said it would not support releasing Fannie and Freddie from conservatorship unless Congress first creates an explicit gov-ernment guarantee for their mortgage-backed securities.
Last summer’s blockbuster ruling from the Court of Appeals was a mixed bag for both plaintiffs and defendants. The long-expected appeal of that decision promises more of the same.
Despite heavy lobbying by large banks for the multi-guarantor model of GSE reform, Don Layton joins the growing crowd of pundits who advocate for managing Fannie and Freddie as public utilities.