Last summer’s blockbuster ruling from the Court of Appeals was a mixed bag for both plaintiffs and defendants. The long-expected appeal of that decision promises more of the same.
Despite heavy lobbying by large banks for the multi-guarantor model of GSE reform, Don Layton joins the growing crowd of pundits who advocate for managing Fannie and Freddie as public utilities.
Fannie continued to wind down its portfolio of nonperforming and reperforming loans, in compliance with FHFA directives; Freddie released two structured pass-through certificates with yields ranging from 2.47% to 5.22%.
The bureau’s proposed rulemaking could apply to nearly a third of the mortgage loans purchased by the GSEs. Industry observers wait to see if it impacts access to credit for low- and mid-income borrowers.
Industry observers worry that FHFA’s failure to complete its final capital rule, and Treasury’s delay releasing its plan for housing-finance reform, may push the end of the sweep into next year.
Fannie and Freddie are struggling to keep their multifamily caps under control in a red-hot apartment market. Meanwhile, life insurers are providing stiff competition.
Harvard's Don Layton on creating more competition for Fannie and Freddie: “I have not encountered any knowledgeable people who think it could happen quickly."
The Wall Street trade group cautioned that releasing the GSEs from conservatorship without an explicit government guarantee will scare investors and reduce the liquidity in the TBA market.
Mortgage Grapevine: MSR auctions have been few and far between of late, but all that may soon change. Meanwhile, Stearns Lending has secured the cooperation of its largest bondholder, PIMCO, to reduce its debt load. Now, it's just a matter of time and working with the bankruptcy court.