Democratic senators ask Fannie and Freddie if they have attempted to model the risks associated with climate-related disasters, including floods, wildfires and extreme weather events.
Independent mortgage bankers became the largest source of new single-family loans for Fannie and Freddie MBS in 2019, while significantly expanding their share of the GSE servicing market. (Includes data chart.)
SIFMA said the Ginnie-like market structure proposed by FHFA isn’t appropriate for conventional MBS. Moreover, the plan doesn’t address the continued misalignment of MBS issued by Fannie and Freddie.
A new report allays concerns that a recent request for input from the regulator regarding pooling practices was an indication that something was amiss.
Over the last decade, the U.S. has averaged nearly 56,000 wildfires a year, covering more than 6.5 million acres, and destroying thousands of homes. The problem is acute enough that discussions are underway to create a reinsurance market for wildfire damage.