A wide range of mortgage industry participants cautioned the Federal Housing Finance Agency that increasing the guaranty fees charged by Fannie Mae and Freddie Mac won’t necessarily prompt an increase in non-agency activity. In June, the FHFA solicited public input about what g-fee level would prompt investors in non-agency mortgage-backed securities to find it profitable to enter the market or prompt banks to hold conforming-balance mortgages in portfolio. “Policymakers should not assume that increases in g-fees alone will lead to a significant increase in private-label securities issuance,” said the Securities Industry and Financial Markets Association, which stressed that a number of factors beyond the pricing of agency mortgages are limiting non-agency activity.
Moves by the Trump administration are disrupting the economy and the federal agencies that deal with the housing market. Bob Broeksmit, president and CEO of the MBA, isn’t sure how it’s all going to play out.
The 10-year Treasury rate is declining and the possibility of a recession is growing.
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