Fannie Mae and Freddie Mac would likely purchase the safest jumbo mortgages if Congress raises the GSE loan limit, but those fixed-rate and fully amortizing mortgages constituted only 30% of jumbo originations in the first half of 2007, according to an early draft of an Office of Federal Housing Enterprise Oversight report. The government-sponsored enterprises would be "less likely to purchase non-traditional loans, particularly interest-only mortgages and negatively-amortizing ARMs," the draft report says. An OFHEO spokeswoman said changes are still being made to the report, which the agency calls a "Mortgage Market Note." To increase liquidity and lower mortgage rates in the jumbo market, Congress is considering legislation to raise the GSE conforming loan limit to 150% of median housing prices in high-cost areas, with a cap of $625,000. However, the GSE regulator is skeptical that the legislation would have much impact on the rates homeowners pay for jumbo adjustable-rate mortgages. "There is little or no evidence that the activities of Fannie Mae and Freddie Mac lower the yields on fully-amortizing ARMs or on non-traditional mortgages," the draft report says.
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According to the Federal Reserve Board's latest financial stability report, persistent inflation and policy uncertainty are the primary worries for banks. Survey respondents expressed heightened anxiety over murky policy outlooks due to geopolitical turmoil and rapidly approaching domestic elections.
2h ago -
Leaders of ORNL Federal Credit Union are piloting Zest AI's new artificial intelligence-powered assistant to ensure equitable underwriting practices and measure performance against similar institutions.
4h ago -
McCargo stabilized the agency at a crucial time as she helped navigate it through both a pandemic and subsequent dramatic interest-rate cycle change.
4h ago -
The quasi-public entity's plan to buy certain closed-end seconds would constitute "unnecessary government encroachment," the Structured Finance Association said.
6h ago -
The mortgage subsidiary of Hilltop Holdings posted another quarterly loss and volume slipped, but management also sees signs of optimism.
7h ago -
The increasing frequency and severity of droughts was top of mind for panelists at AmeriCatalyst's "Going to Extremes" conference Thursday.
April 18