Fannie Mae and Freddie Mac will purchase single-family mortgages that are in forbearance. But there’s a catch: steep LLPAs.

If the coronavirus crisis goes on for more than six to eight weeks, FHFA Director Mark Calabria sees mortgage servicers under “a lot of stress.”

Although only a minuscule share of GSE loans are subject to buyback requests, officials still keep a spotlight on the issue. Fannie recently refreshed its seller QC self-assessment. (Includes data chart.)

Fannie Mae posted significantly lower loan repurchase numbers than Freddie Mac for the fourth quarter, at the same time withdrawing a relatively larger share of buyback claims. (Includes two data charts.)

As part of Freddie’s voluntary retirement program, 700 employees have taken a buyout. Most are expected to be gone by the end of March.

Industry advocates point out that, unlike other forms of credit-risk transfer, private mortgage insurance stands in front of all other losses.

About 87% of buyback activity in the third quarter was related to loans sold to Fannie and Freddie in 2018 and the first half of 2019. (Includes data chart.)