There has long been a concern in the market that if either GSE has a negative net worth, that investors will stop buying their MBS, which would cause the home buying process in America to crumble.
Discussing the new integrated disclosure rule known as TRID, Ishbia noted that loan brokers “adapted wonderfully and we are closing a lot of TRID loans.”
OCC chief Thomas Curry added: “It’s clear to me that these reserves need to rise to account for the increasing credit risk we are seeing in the system."
It makes sense that Fannie Mae/Freddie Mac g-fees should be used to pay for highway repairs. After all, people drive on highways to reach their homes which were bought with mortgages likely guaranteed by the two.