One of these days, the two mortgage giants will commence with a new stock offering. Right? The market seems to be betting on the fact, as are the government-sponsored enterprises.
The industry’s mood at the Mortgage Bankers Association’s annual conference last week seemed optimistic. But global uncertainty with China and trade, and Brexit could cut the good times short.
As the GSE recap-and-release avalanche continues, there’s increasing chatter in the market that Treasury is open to a legal settlement with Fannie/Freddie shareholders. A crazy idea? Maybe not.
FHFA Director Mark Calabria said any revised qualified mortgage rule introduced by the CFPB should be applicable to all lenders. Industry participants are unsure how the regulator will address the issue.
FHFA Director Mark Calabria said he would be willing to wipe out Fannie Mae and Freddie Mac shareholders if needed to ensure taxpayers don’t have to bail out the mortgage giants again.
According to analyst Jaret Seiberg, the risks posed by the Supreme Court’s decision explains why FHFA is considering releasing Fannie and Freddie from conservatorship via a consent decree.
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