The move indicates that investors holding certain Fannie Mae and Freddie Mac credit-risk transfers can expect losses.

Freddie originally planned to issue a $550 million STACR, but then increased the offering size to $1.1 billion due to investor demand.

The first-of-its-kind MBS backed by single-family homes that are energy efficient has been endorsed by Cicero Shades of Green.

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.

The offering followed close on the heels of three K-deals announced the previous week.

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.

K-deals totaling more than $2 billion hit market.

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.

In its S-1 filing, Quicken (not surprisingly) said it’s powerless to modify the rules that govern its relationship with the GSEs.