Cart

Inside The GSEs

July 7, 2010

View Archived Issues

Dems Join GOP in Giving Up on GSE Model

Overlooked in the frenzied lobbying and negotiation over the massive financial regulatory legislation in Congress was the inclusion of a “sense of the Congress” resolution confirming, despite all of the partisan rancor on display, that Democrats have quietly joined the Republicans in abandoning the traditional GSE model of doing business, a model that worked well for decades... Read More

Covered Bond Legislation Fails at the Buzzer

Last-minute objections from the Treasury Department spoiled the bid of Rep. Scott Garrett, R-NJ, to attach his covered bonds legislation, H.R. 4884, to the financial regulatory reform bill now awaiting a final vote of the Senate before being sent to the president’s desk for his signature. During the House-Senate Conference Committee deliberations, there had been indications that... Read More

GSE Volume Slows, Market Share Still High

Fannie Mae and Freddie Mac continued to see declining production volume in their mortgage securitization businesses during the second quarter of 2010, but the GSEs don’t appear to have lost any market share in a cooling home loan business. The two GSEs produced $188.24 billion of mortgage-backed securities during the second quarter, a 9.9 percent drop... [Includes one chart] Read More

Senate Banking to Consider Steve Linick as FHFA IG

After months of no apparent movement on the appointment of an inspector general for the Federal Housing Finance Agency, President Obama has nominated Steve Linick, an upper-level official at the Justice Department, for the position, instead of former Federal Housing Finance Board IG Edward Kelley, currently the FHFA internal audit head. The Senate Banking, Housing and Urban Affairs... Read More

Congress Punts on ‘Fiduciary Duty’ Requirement

Fannie Mae, Freddie Mac and the 12 Federal Home Loan Banks won’t have to make any sudden changes in their hedging strategies, thanks to a decision by Congress to delay imposing a “fiduciary duty” requirement on swaps dealers that could have made it more difficult for the GSEs to tap the derivatives market to help manage their interest-rate exposure... Read More

How Much of a Problem are ‘Strategic Defaulters’?

Fannie Mae, in a move questioned by analysts and derided by skeptics, took aim last month at individuals who deliberately default on their residential mortgages, announcing a seven-year “lockout policy” for such borrowers. “Defaulting borrowers who walk away and had the capacity to pay or did not complete a workout alternative in good faith will be ineligible for... Read More

Comments on Fate of Fannie, Freddie Coming Due

Individuals and entities that are interested in opining on how best to reform the U.S. mortgage finance system, Uncle Sam’s role within it, and the fate of Fannie Mae and Freddie Mac have two weeks left to submit their comments for official consideration. On April 22, the White House took its first step toward GSE reform, issuing for public comment a series of policy questions... Read More

S&P’s Outlook on FHLB Seattle Turns Negative

Things aren’t getting any better for the Federal Home Loan Bank of Seattle, as Standard & Poor’s Ratings Services revised its outlook to “negative” from “stable,” while affirming its ‘AA+/A-1+’ counterparty credit rating – an action due to the Bank’s continuing status as “undercapitalized.” “The outlook revision is based on the FHFA, FHLB-Seattle’s regulator, having deemed the bank to... Read More

News In Brief

FHLBanks Get Their Advance Lending Exemption: You won’t hear them crowing about it... Time For the Big Pay Back: Included in the Dodd-Frank regulatory reform legislation is... FHFA Issues Proposed Rule on GSE Conservatorships and Receiverships: As Inside The GSEs was going to... Freddie Fires Technology Head But Keeps Him Around, For Now: Freddie Mac fired its head of operations... Read More

Latest Imf News

More Imf News

Featured Data

More Featured Data

Featured Reports

More Latest Reports

Featured Poll

As homeowner equity continues to build, more and more lenders are launching home equity lending products. Are you thinking of joining this market?

View Results