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Inside The GSEs

September 23, 2009

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GSEs’ Fate Lies in the Hands of Other Players

Congress and the Obama administration are likely to begin debating the fate of Fannie Mae and Freddie Mac in earnest early next year. Under unprecedented circumstances, the two GSEs themselves won’t be able to commandeer the restructuring process as they have the GSE reform process in the past. “This the first time that Fannie and Freddie have little or no power to influence the debate... Read More

Should FHLBanks Absorb Fannie, Freddie?

In the run-up to the next campaign to be waged for the future of the GSEs, the Congressional Research Service recently floated the idea of merging Fannie Mae and Freddie Mac into the Federal Home Loan Bank System. Under this approach, “The FHLBank System could purchase Fannie Mae and Freddie Mac, which would become a mortgage securitization facility (or facilities) within the FHLBank System... Read More

Fannie Close to Applying for Warehouse Lending Role

Fannie Mae might be on the verge of applying to its regulator for some sort of role in the warehouse lending sector, according to one industry representative lobbying for such support from the GSEs. “We have been working to get both of the GSEs interested in purchasing participation interests in warehouse lines. It appears that if the GSEs were to do that, it would constitute a new activity... Read More

GSEs Want Easy ‘Underserved’ Implementation

Fannie Mae and Freddie Mac told their regulator their new “duty to serve” underserved markets shouldn’t rock the boat and require too much of a stretch, given they’re still in conservatorship. Earlier this year, the Federal Housing Finance Agency issued an advance notice of proposed rulemaking related to fulfillment of a new duty-to-serve requirement, which was established by the Housing... Read More

GAO Finds Limited Effectiveness of Housing Goals

The Government Accountability Office has found Fannie Mae’s and Freddie Mac’s satisfaction of their affordable housing goals had a marginal positive impact on improving affordable housing. “While the enterprises’ numeric housing goal mortgage purchase program has been in place for more than 10 years, its effectiveness in supporting homeownership opportunities for targeted groups and areas... Read More

Uncle Sam Behind Most Lending, Fannie CEO Says

Federal government affiliated mortgage lending programs are responsible for about 90 percent of the liquidity going to help the mortgage market these days, with private lenders accounting for only a fraction, Fannie Mae’s new president and CEO, Michael Williams, said last week in his first speech as the GSE’s chief. “Today, Fannie and Freddie provide about 70 percent of the liquidity to... Read More

Decline in Bank, Thrift Use of FHLB Advances Slows

U.S. financial institutions continue to see improvement in their access to sources of liquidity, as the use of Federal Home Loan Bank advances by the top bank and thrift users dropped for the third consecutive quarter, the latest ranking and analysis by Inside The GSEs has found. The findings further confirm the slowdown in the growth rate of advance use that... [Includes one chart and one graph] Read More

Will FHLBs Follow Fannie, Freddie into Bankruptcy?

A new independent research analysis questions whether the Federal Home Loan Banks are holding onto toxic assets that might drive the entities into the arms of the federal government for another rescue a la Fannie Mae and Freddie Mac. “In the last six months, they collapsed their balance sheet by $200 billion, from $1.349 trillion to $1.148 trillion of assets,” said Casey Research analyst... Read More

News In Brief

FHLB, GSE Borrowing Authority Unlikely to Be Extended: The substantial backstop borrowing facilities that the Treasury Department set up... Former PHH Exec Edwards To Head Fannie’s Credit Portfolio: Former PHH Corp. President and CEO Terry Edwards has signed on... Some Key FHFA Comment Periods Are About to Close: The following is a list of key comment periods that are... Read More

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