GOP staffers on the Senate Banking Committee said remarks Tuesday by Sen. Pat Toomey, R-PA, were a sign he was willing to compromise on an explicit government guarantee of agency MBS.
But the rule change that has generated the most confusion is one that limits acquisitions of loans secured by investment properties or second homes. One bugaboo: the start date.
Many lenders were under the impression the new restrictions on Fannie’s and Freddie’s acquisition of mortgages for second homes and investment properties would go into effect next year. Apparently not.
Under the new proposal, agency MBS received through reverse purchase agreements would not be considered high-quality liquid assets, a departure from coverage ratio standards used by bank regulators.