If Congress does not pass a GSE regulatory reform bill, a Friedman Billings Ramsay analyst says he expects the Bush administration to kept a tight rein on Fannie Mae and Freddie Mac and limit their issuance of corporate debt."If the administration is handed reckless legislation or gets no legislation at all, we expect the Treasury Department would begin to flex its muscle regarding debt issuance, which if effective, could prove to be a de facto asset cap," FBR managing director Paul Miller says in a research paper. (The government-sponsored enterprises issue debt to finance the growth of the mortgage portfolios.) Mr. Miller also contends that the outlook for passage of a GSE reform bill this year is not good despite reports of negotiations to break a deadlock over GSE portfolio limits. "Following our meetings with Hill staffers, it appears to us that a compromise is further apart than many press outlets have claimed," the FBR analyst says.
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While the three largest lenders now offer VantageScore, Bank of America Securities says two agency pulls boosts consumers scores, no matter which model.
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Federal Housing Finance Agency Director Bill Pulte said last week that it will slash the budget for its inspector general, spurring Senate Banking Committee Democrats to seek his testimony.
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The technology provider now counts two top 10 servicers among its customers and intends to use new capital to accelerate product development and add staff.
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Fitch Ratings, noting the reduction in Wells Fargo's balances and sale of non-agency servicing, said the bank no longer meets expectations at its old grade.
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ARMs accounted for more than 11% of rate locks, their largest share in nearly four years and up more than three percentage points over the past three months.
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The chief risk officer's oversight extends to the modernization of loan pricing and scoring, which the GSEs' oversight agency has been accelerating.
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