Manufactured housing loans remain a tiny fraction of GSE acquisitions, but that share has nearly doubled since 2019 and plays an important role in spec pooling.
Federal Reserve Vice Chair Michael Barr plans to recommend retaining capital requirements for unrealized losses on MBS held in bank portfolios. This provision was in response to the 2023 banking crisis.
Participants in the MBS and ABS market have widespread concerns about a proposal to adjust capital requirements for large banks. They argue that the proposed capital requirements are unnecessarily high.
FHFA is looking to reduce capital requirements for the GSEs’ issuance of commingled securities. Some are happy with the agency’s plan, while others argue that no capital requirements are necessary.
Freddie Mac saw a big fourth-quarter increase in Supers issuance that appeared to make up for lost ground earlier in the year. All three agencies posted declines in new REMIC production in the fourth quarter. (Includes two data charts.)
Even though the upfront fee Fannie and Freddie impose on commingled securities has been sharply reduced, some industry watchers argue that it has permanently damaged the market for Supers and REMICs.
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