Of the lenders analyzed by hedge advisory firm MCT, 25% will be directly impacted by the $1.5 billion cap on the amount of loans Freddie and Fannie can purchase from each seller over any four-quarter period.
The co-inventor of the MBS says Fannie and Freddie should be regulated as utilities to improve their affordable housing and racial equity activities. He recommends Treasury use its equity to fund joint venture.
The industry veteran joins a growing list of highly regarded members of GSE leadership who have recently decamped for greener pastures in private enterprise.
An Inside The GSEs analysis of UMBS issued by Fannie and Freddie over the past two years suggests the $1.5 billion cash-purchase cap will undercut loan sales at scores of lenders. (Includes data chart.)
Spikes in amortization income, guarantee-fee income and credit-related expenses are all closely tied to the government’s intervention in the coronavirus crisis. (Includes data chart.)
Freddie Mac’s Voluntary Early Retirement Program resulted in 600 buyouts by the end of 2020, but salaries and benefits expenses actually rose in the short term.