In recent years, nonbanks have made major inroads into sectors like the single-family mortgage market, where they now originate more than half of loans.
Since the Federal Housing Finance Agency launched a credit risk transfer program for GSEs Fannie Mae and Freddie Mac in 2013, the enterprises have transferred $102 billion in credit risk to private investors, amounting to about 3.3% of $3.1 trillion in unpaid principal balance, the FHFA said today. For the first half of 2019, the GSEs transferred about $10.5 billion worth of credit risk. Transfers included debt issuances, insurance and reinsurance transactions, senior-subordinate securitizations and several kinds of lender-collateralized recourse transactions.
The Federal Housing Finance Agency today released its updated strategic plan for Fannie Mae and Freddie Mac, outlining three broad objectives for the GSEs including preparing for their eventual exit from conservatorship.
As policymakers pursue housing finance reform, ABA President and CEO Rob Nichols joined the heads of four housing trade associations in calling for “thoughtful and balanced” changes.
FHFA Director Mark Calabria said he expects Fannie Mae and Freddie Mac to retain earnings for up to 18 months as the GSEs work to rebuild capital, according to reports Thursday.
Fannie Mae and Freddie Mac will retain a total of $45 billion in earnings under a new agreement reached with the Treasury Department and the Federal Housing Finance Agency.
In a move intended to level the playing field in the mortgage market, the Federal Housing Finance Agency has directed Fannie Mae and Freddie Mac not to provide volume-based discounts for guarantee fees they charge lenders.
The Federal Housing Finance Agency announced today that it will raise Fannie Mae and Freddie Mac’s caps for multifamily lending to $100 billion for each GSE.
In a statement for the record before yesterday’s Senate Banking Committee hearing on housing finance reform, ABA recommended nine principles to guide the reform of Fannie Mae and Freddie Mac, which have been in conservatorship for over a decade.
ABA joined a broad coalition of financial industry stakeholders, civil rights groups and other advocacy organizations in a letter to the Consumer Financial Protection Bureau today offering feedback on the expiration of the temporary “GSE patch,” which grants Qualified Mortgage status to loans eligible to be purchased or guaranteed by Fannie Mae or Freddie Mac.