GSE reform

If Fannie and Freddie are going to supply a government guarantee on mortgages, they might as well be part of the government.

The former head of the Office of Federal Housing Enterprise Oversight explains why he thinks the mortgage industry is closer than ever to having a truly paperless process, and weighs in on GSE reform.

The Federal Housing Finance Agency is scrapping a capital proposal it released last year and will seek comments on a new plan in 2020.

And the government-sponsored enterprises could hold initial public offerings in 2021 or 2022 to ensure they hold adequate capital, FHFA Director Mark Calabria said.

The Federal Housing Finance Agency is seeking comment on a proposal that could pave the way for potential Fannie Mae and Freddie Mac competitors to use the uniform mortgage-backed security structure.

When it comes to possible new competitors in the secondary market, the heads of the two current outlets more than welcomed the possibility of additional players in their space because of housing finance reform.

Private-label securitizations haven’t commanded a meaningful share of the mortgage-backed market in a decade. Trump administration officials seem intent on changing that

Allowing the mortgage giants to retain profits resolves a short-term capital shortfall, but how much capital they would need after exiting conservatorship is still the bigger question.

The move to alter the government's preferred stock purchase agreements is the first major one under FHFA Director Mark Calabria's tenure to wind down the conservatorship of the government-sponsored enterprises.

The recapitalization of Fannie Mae and Freddie Mac prior to the 2020 election is unlikely even if the net worth sweep ends, according to a Keefe, Bruyette & Woods report.