The Democratic proposal calls for private mortgage capital to backstop the first 5 percent of conventional-mortgage securitizations with the remaining 95 percent of risk shared “on a pari passu basis.”
Sen. Shelby is an Alabama Republican with a populist streak who is no friend of the GSEs, but he may side with shareholders of the two companies who are getting shafted by Treasury “sweeps.”
In other mortgage-stock news, Ellie Mae Co-founder, Chairman and CEO Sig Anderman has been exercising stock options of late, and selling shares in the company.