Freddie commemorated its 50th year in business with a landmark $107.6 billion in new single-family business, its biggest output ever. The GSEs could set a new annual record by the time 2020 is over. (Includes two data charts.)
Fannie Mae and Freddie Mac have dramatically increased the amount of debt they’ve issued this year due to the economic impact of the coronavirus. But the cost of their debt tells a different story.
When panic first set in over the economic impact of COVID-19, investors sold off historically large volumes of MBS and Treasuries. As a result, liquidity and pricing efficiency both took a beating. It was the Fed’s gluttonous appetite for these securities that brought markets off the cliff.
Some industry players believe FHFA Director Mark Calabria wants to use an activities-based review of the market to reduce regulations, which many observers think increase the cost of mortgages.
Freddie Mac returned to market in July with a $425 million ACIS deal and $1.1 billion STACR, leading GSE watchers to conclude the CRT market has returned from the dead. Others are not so sure.