With volumes down slightly for the quarter, depositories experienced a slight increase in their market share. But nonbanks still account for more than 68% of total GSE loan sales. (Includes two data charts.)

Biden’s FHFA nominee Sandra Thompson has made it clear that the agency can’t end the conservatorships without help from the Departments of Treasury and Justice and, most importantly, Congress itself.

In April, Fannie and Freddie will begin charging sharply higher LLPAs on second-home and high-balance mortgages. The change is likely to expand non-agency securitizations at the expense of Fannie and Freddie.

Fed Chair Jerome Powell told the Senate Banking Committee that the central bank could begin to reduce its portfolio of Treasuries and mortgage bonds later this year.

The GSEs will have to find ways to better serve the rural housing, manufactured housing and affordable housing preservation markets.

Freddie veterans Steve Lineberger and Meg McElgunn will run the Western and Central districts as well as the Northeastern and Southeastern districts.

Multifamily caps have kept Fannie and Freddie from expanding their footprint in the apartment market, which grew by 25% in 2021 and is expected to expand by as much as 11% this year.

When-Issued certificates allow the enterprise to advance fund the guaranteed portions of its signature K-deals. That means Freddie can transfer market risk while pooling collateral for its MBS.

Don Layton believes the new 2022 loan limits will cause home prices to increase even more, but the politicization of the housing-finance system makes it unlikely FHFA will be able to do anything about it.

In the first nine months of 2021, GSE sellers have repurchased $2.1 billion of defective loans from Fannie Mae and Freddie Mac, more than in any year since 2014. Soaring new MBS issuance is the reason.