Nearly four years after the housing bust, there has been scant evidence of private capital coming into the mortgage market
Fannie Mae president and CEO Timothy Mayopoulos said the GSE recognizes the outsized role it is playing in the mortgage market but is working on trying to attract more private capital to the business, he told attendees at the Mortgage Bankers Association’s annual convention in Chicago today.
There has been some deconsolidation in the business with certain larger players reducing their involvement as whole loan purchasers, Mayopoulos said. As a result, Fannie Mae is seeing more small and mid-sized mortgage bankers selling directly to the agency.
In the past, large aggregators had absorbed the risk of smaller players but now Fannie is taking on that risk. The marketplace has all sizes of lenders and everybody should have the same access to the secondary market, Mayopoulos said.
His counterpart at Freddie Mac, Donald Layton, said his GSE is working to build a new and improved infrastructure for housing finance, referencing, the Federal Housing Finance Agency's securitization utility white paper.
Acting FHA commissioner Carol Galante noted that her agency’s future role is linked with the future of the GSEs. The movement must be synchronized to avoid leaving out groups of borrowers, she said.