What’s gestating now in Congress may represent the best chance of reforming the secondary market since Fannie Mae and Freddie Mac were placed into conservatorship in September 2008…
FHFA's Mel Watt: "While it is apparent that a draw will be necessary for each enterprise if tax legislation results in a reduction to the corporate tax rate, FHFA considers the $3 billion capital reserve sufficient to cover other fluctuations in income in the normal course of each Enterprise’s business.”
While combined GSE servicing still accounted for a hefty 44.9 percent of single-family mortgages, it has continued to drift lower over the course of 2017…
Mel Watt continued: “We, therefore, contemplate that going forward enterprise dividends will be declared and paid beyond the $3 billion capital reserve in the absence of exigent circumstances.”
The FHFA noted that if another credit scoring model is introduced, the entire mortgage finance industry will incur increased operation and transition costs…
Fannie Mae and Freddie Mac likely will post healthy combined earnings for the fourth quarter in the range of $4.0 billion to $5.0 billion, according to an analysis by Inside Mortgage Finance. And un-der a surprise revision to their conservatorship terms, they’ll likely be able to keep a good deal of it.
Fannie Mae and Freddie Mac are ramping up efforts to support the affordable housing market by financing manufactured housing loans titled as personal property and developing new financing to re-habilitate aging properties.