Many lenders were under the impression the new restrictions on Fannie’s and Freddie’s acquisition of mortgages for second homes and investment properties would go into effect next year. Apparently not.

The CFPB proposed extending the GSE “patch” through September 2022 while new leadership at the regulator considers revisions to the general QM standards.

Sen. Pat Toomey, R-PA, argued that the Democrats’ $1.9 trillion COVID relief bill and the Federal Reserve’s bond purchases are no longer necessary, and that more targeted, less costly measures are in order.

Fannie and Freddie both grew their portfolios of whole loans targeted for the securitization process while reducing the amount of their own MBS holdings. (Includes data chart.)

Read the tea leaves: Rising rates and a jump in MBS activity could portend trouble up around the bend.

So far, performance of the multifamily businesses of Fannie Mae and Freddie Mac in 2021 resembles 2020. It’s not clear if these similarities will persist.

In late 2020, Fannie came back into credit-risk transfers with a bespoke deal with one of its largest nonbank sellers. Freddie continued full speed ahead with more traditional STACR issuance. (Includes data chart.)

Due to COVID-related forbearances, Freddie faced a $2.2 billion increase in its provisions for losses in 2020. However, that expense was more than offset by an across the board increase in revenues.

Trade group officials believe by opening a dialogue with regulators they can fix the GSE cash window “problem” that is looming.