Calabria stressed the plan is process-based rather than calendar-driven. He also pointed out that the two mortgage giants will have to be adequately capitalized and make appropriate changes to their culture.
Aside from g-fee pricing, most of the ways the GSEs could engage in volume discounting would take place in the secondary market. That means they’re not really violating regulations.
The industry’s mood at the Mortgage Bankers Association’s annual conference last week seemed optimistic. But global uncertainty with China and trade, and Brexit could cut the good times short.
In a bid to ensure the GSEs maintain oversight of UMBS prepayment speeds and alignment, the FHFA is seeking feedback on all policies that might affect fungibility and the viability of the TBA market.
Meanwhile, PennyMac Mortgage Investment Trust, a REIT affiliate of the nation’s fifth largest home lender, plans to offer $200 million worth of senior notes, also due in 2024. PennyMac has yet to publish the yield.
The RFI seeks public input on all policies that might affect UMBS fungibility and the viability of the TBA market. The action appears to be an effort by the agency to ensure the enterprises maintain appropriate oversight of UMBS prepayment speeds and alignment.