SIFMA's call for higher guaranty fees might sound like heresy in the mortgage industry, but the trade group clearly wants the non-agency market to revive.
The Investors Unite chief said Watt has publicly acknowledged that he possesses the Congressional authority to end the GSE conservatorships under the Housing and Economic Recovery Act of 2008.
“The government presumably feels emboldened from the decisions that it’s been getting, and we anticipate that those will continue in the near future,” one mortgage buyback expert said.
Fannie-backed MBS, in general, trade better than Freddie participation certificates (PCs), which has resulted in guaranty fee pricing differentials between the two.
Fannie Mae and Freddie Mac are expected to pay some $5.6 billion to taxpayers following a “normal” second-quarter earnings period that was largely absent of big-ticket tax breaks or large litigation settlements, the two government-sponsored enterprises announced Thursday morning.