As the FHFA cracks down on investor-loan volume, opportunities are being created anew. Also, FHFA, apparently, is losing sleep over GSE CMBS. (That’s correct.)
A 30-year industry veteran, DeVito will fill the leadership gap created when former Freddie CEO David Brickman unexpectedly announced his retirement from the company in December.
The FHFA’s focus on agency CMBS is curious because, as the bulletin explains, these securities typically have significant prepayment protection clauses that aren’t available on residential MBS.
GSE regulator Sandra Thompson: “FHFA has nothing against big players, but their size means that they don’t have to worry about accessing the capital markets. Small lenders, on the other hand, may be able to leverage local knowledge to best serve their communities.”