Fannie and Freddie reported lower combined comprehensive income in the second quarter compared with a year ago. While net interest income and non-interest income declined, expenses shot up.
Both GSEs posted their highest monthly volume of single-family MBS issuance since January 2017. Purchase-mortgage and refinance business rose significantly.
The successful launch of the single security — more than $9.5 trillion in UMBS has traded through the end of July — may pave the way for broader housing-finance reform, according to researchers at the Urban Institute.
“Patch” loans, cash-out refinances, investment loans and second family homes constitute more than 50% of the dollar volume of Fannie and Freddie MBS issuance.
The trade group last week said it would not support releasing Fannie and Freddie from conservatorship unless Congress first creates an explicit gov-ernment guarantee for their mortgage-backed securities.
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