Key mortgage industry stakeholders say an IPO of GSE stock would have trouble attracting investors if FHFA remains their conservator or they are released without an explicit guarantee.

Credit-risk transfer activities at Fannie Mae and Freddie Mac wobbled in the second quarter after a modest increase in the first three months of 2025. Issuance fell for STACRs but not for CAS notes. (Includes data table.)

Mortgage rates and MBS spreads may depend on how the White House structures the proposed IPO for the GSEs and how markets react to a potential merger of the two mortgage giants.

President Trump said he plans to maintain an implicit guarantee for the GSEs if they’re removed from conservatorship. Prominent agency MBS investors expressed relief about the administration’s stance on GSE reform even though they don’t expect near-term action.

Federal Reserve Governor Christopher Waller said the central bank’s balance sheet hasn’t grown as much as people think, but that MBS sales might be needed to balance the duration of assets and liabilities.

It may take time for MBS investors to fully understand how use of the new credit score for underwriting loans sold to the GSEs impacts pricing and hedge strategies.

Changes to Common Securitization Solutions, including being renamed U.S. Financial Technology, appear to set the company up to serve additional secondary mortgage market participants.

Fannie will take the first losses on the transaction, with additional losses borne by Bayview and investors in the deal. That’s a change from the typical CRT from Fannie where a third-party like Bayview isn’t involved.

New studies show that the expectation of future climate risk effects the current behavior of lenders and CRT can be used to estimate the true cost of hurricane risk.

In the wake of Trump’s social media posts pledging to retain the implicit guarantee for GSE MBS, industry analysts see signs for support for the administration’s plans for GSE reform.