The CMC letter follows one sent last night by 15 housing and mortgage-related trade groups to Acting FHFA Director Edward DeMarco, asking him not to lower the GSE loan limit, while questioning the legality of such a change.
What if the U.S. government actually defaults on its debt – what would that do to the value of MBS and Treasuries held on the balance sheet of banks? You may not want to know the answer.
Industry advisors and lobbyists hope they can move the implementation date for lower GSE loan limits deep into the second quarter, but they also realize they cannot forestall it completely.
Some lenders have vowed to close loans without IRS verifications, filling the void by asking for additional and in-depth documentation – but only on retail-sources mortgages.
The creation of a U.S. sovereign wealth fund could grease the skids for an end to the conservatorships of Fannie Mae and Freddie Mac.
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