Freddie Mac has decided to become a more active buyer of its newly issued mortgage-backed securities to prop up the pricing of its MBS, which are called participation certificates.The secondary market agency also announced that it plans to sell its holdings of Fannie Mae MBS to fund the purchases. At the beginning of this year, Freddie Mac held $77.0 billion in Fannie Mae MBS, according to the Office of Federal Housing Enterprise Oversight. "The sale of Fannie Mae securities will facilitate the funding of TBA PC purchases...," according to an information supplement dated Oct. 29. In recent weeks, Freddie Mac signaled that it will lower its guarantee fee to ensure that its bids for whole loans is competitive with Fannie's. This temporary policy is designed to make Freddie more competitive and to improve the pricing of its PCs. "If Freddie Mac's price performance strategies are not successful over the long term, this could have a material adverse effect on the profitability of Freddie Mac's securitization business," the information supplement says.
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In an interview, Candor Technology's Sara Knochel recounts how she applies her childhood interest in languages and numbers to crucial home lending issues.
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Harmonizing standards for liquidity coverage ratios and discount window pledges could prevent the type of strains that led to last year's bank failures, according to a new paper whose authors include former Federal Reserve Govs. Dan Tarullo and Jeremy Stein.
March 27 -
The report seeks to help banks "disrupt rapidly evolving AI-driven fraud," according to Treasury's Nellie Liang. The report found banks have difficulties accounting for AI risks.
March 27 -
The lender accused its former leader of compromising its Fannie Mae seller/servicer number to prevent it from delivering loans.
March 27 -
Equity is entitled to a little over $70,000 worth of damages.
March 27 -
Audited financials, proof of fidelity bonds and errors and omissions insurance must be provided on Ginnie Mae Central after May 13.
March 27