Christopher Whalen

Whalen: "It is tempting to think that low interest rates will cure all ills in the housing sector, but this view is seriously in error, as we learned in 2008."

Any intention that Ginnie Mae may have had to slow prepayment rates by changing the rules on RPLs seems to be thwarted by the grim economic reality facing the big banks.

FHFA, HUD and Ginnie Mae should let the rate of prepayments on MBS dictate bond prices and market rates.

Not only is FHFA Director Mark Calabria preparing the GSEs to raise capital, but he must also help them decide just what they are selling to private investors in the way of equity returns and risk.

The history of riskier lending over the last half century can offer lessons for today's market.

FHFA Director Mark Calabria stated that he was directing the GSEs to "add liquidity" to the markets, but the actions of the FHFA say precisely the opposite.

FHFA head Mark Calabria and his FSOC counterparts need to sit down with the Treasury and fashion an emergency capital plan for the GSEs.

Simply stated, the federal forbearance of mortgage payments is perhaps the largest unfunded public mandate in American history.

A number of proposals have been floated for debt payment holidays and other types of moratoria, but such approaches offer solutions that are worse than the problems.

With the return of volume and profitability to mortgage lending, it is no surprise that commercial banks are coming back to the market.