Purchases of refinance loans since December 2020 generated roughly $6.6 billion in adverse market refi fees for Fannie and Freddie, boosting them to a seven-year high in net income in the second quarter. (Includes data chart.)

Why compete against the Fed for agency MBS? Sometimes, shrinking is a better strategy, which is what the mega "mREITs" are doing.

The mortgage giant’s $3.6 billion profit for the second quarter benefited by as much as $1 billion in revenue from the controversial adverse market refinance fee.

Despite various penalties for early prepayments, FHFA believes multifamily MBS issued by Fannie and Freddie present risk for the FHLBanks. Fannie thinks otherwise.

The end of the QM patch — thanks to a maneuver by the FHFA and Treasury — could help the non-agency market compete with the GSEs.

The White House responded quickly to SCOTUS’ Wednesday ruling that the FHFA director can be fired at will. Within hours, Mark Calabria was shown the door and Sandra Thompson was appointed acting chief.

In an interview with IM&A, former Treasury official Craig Phillips says capitalize the GSEs and let them go.

The new rule would cover the forward settlement exposure for the counterparties in TBA deals.

MBS trading is drifting lower in a rising rate environment, but the outlook remains cloudy as mortgage bankers wonder how many more months they have left before refis drain for good. Or will they?

Analysts argue that resolutions plans for the GSEs are purely theoretical devices because the government will never let them fail.