Advanced Search

Volume 2016 - Number 10

March 10, 2016

All Eyes on FHFA as GSE Capital Wanes; Tweaking the Timing of the 'Earnings Sweep' Could Buy Some Time

If Freddie Mac needs a cash draw from the U.S. Treasury this year because of hedging losses, the Treasury Department could avoid tapping taxpayer funds by changing the quarterly sweep of the government-sponsored enterpriseís profits to an annual payment. That way, cash could stay on the books of a GSE longer and could be tapped in the event of a loss. At least thatís the legal theory being kicked around by several industry officials Ė including trade group representatives Ė who fear the political ramifications of a GSE needing Treasury assistance. To change the quarterly earnings sweep, the Federal Housing Finance Agency in conjunction with Treasury would have to change the terms of the conservatorships by altering the preferred stock...

Subscribers to Inside Mortgage Finance have full access to all its stories and data online. Visitors may become subscribers for full access or may purchase individual articles and data.

Subscriber Log In

If you are a current subscriber or already purchased this article, please login below.

Forgot your password?

Already subscribe but haven't registered for all the benefits of the website?

Subscribe

A weekly "must read" for industry executives. Thoroughly covers regulatory, political, legislative and market issues in the residential mortgage business.

 

Pay-Per-View

You can purchase this article for $55.00 without subscribing and always have access to it on insidemortgagefinance.com.

Pay Per View

Please contact Customer Service if you need assistance: 1-800-570-5744

Poll

On average, how much of a commission does your shop pay loan officers per loan they originate ?

25 to 50 basis points.
51 to 100 basis points.
101 to 150 basis points.
North of 151 basis points. (We expect a lot.)
We pay salary, not commission.

vote to see results