A recent report from the Congressional Research Service suggests that it may be difficult to simultaneously raise the capital requirements for the GSEs and shrink their footprint, and still expect them to attract equity investors.
Veteran analyst Dick Bove says tapering by the Federal Reserve and meddling by the FHFA will eventually force the Biden administration to address housing-finance reform.
Variation margins will reduce counterparty risk in to-be-announced MBS transactions by requiring buyers and sellers to post margins for any change in prices before settlement.
Freddie posted a huge 20% increase in single-family MBS issuance last month, fueled by big gains at its cash window. Fannie volume was up a more subdued 3% from March. (Includes two data charts.)
Fannie and Freddie hope to repeat their success with green multifamily MBS on the single-family side of the business. They’re also expanding their ESG offerings into social and sustainable bonds.
Slumping purchase-mortgage business drove Fannie/Freddie MBS volume lower in the first quarter, but securitization of refinance loans remained robust. (Includes two data charts.)