The controversial proposed capital rule for large banks sets a 75% loss given default rate for GSE debt issued but not guaranteed by the GSEs. For the debt guaranteed by the GSEs, the LGD rate will be 25%.

Most of the drop-off in production hasn’t been because borrowers didn’t want to pay high interest rates, an analysis from FHFA showed. It’s because high interest rates have spiked DTI ratios, disqualifying borrowers for a mortgage.

FHLB San Francisco CEO Teresa Bazemore argues that the system’s dual mandates of supporting housing and providing liquidity for FHLBank members are related.

Designating the appropriate SOFR-related benchmark rates for GSE products is one of the last major steps in the transition from LIBOR.

With the Fed and banks no longer supporting the MBS market, liquidity depends on small investors and nonbank financial institutions.

Former Freddie CEO Don Layton joins critics who argue that, based on the results of the 2021 DFASTs, the current capital rule is far too conservative.

Since the Federal Open Market Committee ostensibly began to let them run off on June 1, SOMA’s holdings of agency MBS have increased by $20 billion.

The former FHFA director said, given the Federal Reserve’s commitment to fight inflation, home prices could fall by double digits in percentage terms over the next few years.

Conservative economist Douglas Holtz-Eakin said the Federal Reserve’s exit from the MBS market is helping drive up interest rates in the affordable housing space. The remedy, he said, is GSE reform.

A new research paper co-authored by officials at the Federal Reserve argues that the public/private nature of the FHLBs has allowed them to engage in activities not expressly foreseen by Congress.