Federal Reserve Chairman Ben S. Bernanke said Thursday that Fannie Mae and Freddie Mac should be allowed to securitize loans of up to $1 million as a way to alleviate the mortgage credit crunch.Currently, Fannie and Freddie cannot purchase or securitize loans larger than $417,000 -- their loan limit "cap." The Fed chairman said the government could act as a guarantor to aid Fannie and Freddie in securitizing jumbos. "Suppose that the GSEs were to pay their usual mortgage insurance credit fee to the government, which then acted as guarantor so it would be taking away the credit risk from the GSEs," he told the Joint Economic Committee of Congress. "They could process these jumbo loans and sell them in the secondary market." Approval for the government-sponsored enterprises to securitize jumbos would need congressional approval.
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The RMBS notes benefit from geographic diversity and credit enhancement.
10h ago -
A Consumer Financial Protection Bureau "waives any alleged noncompliance" by the mortgage company while continuing to dole out redress to borrowers.
10h ago -
Refinance apps made up more than 40% of all mortgage applications last week, driving an uptick as consumers seek out cheaper mortgage payments.
July 2 -
The chairman and regulator of Fannie Mae and Freddie Mac pointed to Jermone Powell's recent testimony about renovations to the Federal Reserve's headquarters.
July 2 -
It's a rare theft of trade secrets complaint by the industry leader, which stayed out of the spate of litigation between competitors during the refinance boom.
July 2 -
Navy Federal Credit Union will not pay a $15 million fine or $80 million in restitution to service members who were illegally charged surprise overdraft fees when their accounts had sufficient funds.
July 2