A negative profitability gap means the guarantee fees on newly acquired loans weren’t enough to cover the expected cost of guaranteeing the loans and earning the expected return on capital.

UWM, Rocket and Pennymac all sold fewer mortgages to the GSEs in November than in October. That contributed to a 1.3% monthly decline in GSE MBS issuance. (Includes two data tables.)

Industry observers note that, despite its bold pronouncements about a public offering for the GSEs, the Trump administration still has not addressed the key issues that make this a risky proposition.

Legislation could prompt a study by the GAO to see if a secondary market for securitizations of acquisition, development and construction loans would help increase the supply of new-built homes.

Pershing Square founder Bill Ackman, who earlier this year pitched a swift end to the conservatorship, now says it could take as long as three years. He also has some near-term suggestions.

Mortgage industry stakeholders discussed what happens to the UMBS, LLPAs and capital rules if shares in the GSEs are sold without letting them out of conservatorship.

Enhancements to CRT disclosures introduce three new fields and modify one existing field.

According to an analysis by a former FHFA economist, GSE market share ranges from 14.5% in Eagle Pass, TX, to 67.0% in Boulder, CO. Except for Puerto Rico, these disparities are widest in the South and Southwest.

Amid pressure from some lender trade groups, Fannie Mae and Freddie Mac increased their investments in agency MBS during the third quarter. The move can drive down mortgage rates and goose GSE profits. (Includes data table.)

Mortgage industry stakeholders pump the breaks on GSE reform while the administration still seems to have its foot on the gas.