Two main sources for lender liquidity are working to improve communication and simplify collateral exchange.

FICO’s CEO argued that VantageScore isn’t gaining much traction in the MBS and ABS markets, and that the only way the score will take share with GSE mortgages will be if lenders game the system.

Policies put in place during the pandemic prevent many small banks and credit unions from selling small-balance loans to the GSEs, which constrains mortgage lending in rural and low-income communities.

Even with strong earnings the GSEs are making little progress on meeting stringent capital levels set during the first Trump administration.

Despite ending his long hiatus on GSE talk, Trump fails to persuade skeptics that he’s ready to take Fannie and Freddie out of conservatorship anytime soon.

At Freddie, net interest income has increased slightly in every quarter but one over the past three years.

Fannie added MBS at a fast pace and Freddie reduced its whole-loan holdings.

After weeks of silence on the status of Fannie Mae and Freddie Mac, President Trump stirred up shareholders this weekend by bringing up the concept of a public offering at two separate events.

Fannie Mae’s net interest income has barely changed over the past 13 quarters, while Freddie Mac’s has increased slightly in all but one of those quarters. (Includes data table.)

Until Fannie and Freddie are more transparent about the loan-level pricing adjustment grids for the new credit score, lenders and investors will remain cautious about its implementation.