Fannie financed $76 billion through its Delegated Underwriting and Servicing program, while Freddie pumped out $82.5 billion in loan purchases and guarantees.
Freddie’s multifamily structured credit risk notes are structured on actual losses. Previous issuances were based on a fixed-severity formula, which created a gap between when losses were booked and reimbursed.
Going forward, mortgages will qualify for the QM safe harbor if the annual percentage rate on the loan doesn’t exceed the average prime offer rate by more than 150 bps.