Instead of setting arbitrary limits on the size of Fannie Mae's and Freddie Mac's mortgage portfolios, Congress could use market mechanisms to restrain their growth, according to a real estate finance professor.Professor Richard Green of George Washington University told a National Association of Realtors' forum in Washington that eliminating the portfolios would reduce liquidity in the secondary market and decrease the availability of mortgage products, including fixed-rate mortgages. However, he said Congress could require the two government-sponsored enterprises to finance more mortgage purchases with subordinated debt so it is clear to investors that the debt is not backed by the U.S. government. Or the government could impose a tax or fee on the issuance of GSE debt to reduce the profitability of their mortgage investments. "That would probably mean that mortgage rates would go up by a basis point or two," Mr. Green said. In contrast, American Enterprise Institute resident fellow Peter Wallison told the NAR legislative conference that eliminating Fannie's and Freddie's portfolios would have no impact on liquidity or the availability of FRMs. The GSEs could continue to provide the same benefits to the housing market through the "securitization of mortgages without creating risks for the taxpayers," Mr. Wallison said.
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Michael Tannenbaum, whose experience in the financial services industry spans over 15 years, has a track record of helping companies scale and grow.
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A majority of consumers earning more than $100,000 annually said they were concerned about their own ability to purchase a home, demonstrating how affordability issues are impacting those at many socioeconomic levels, the University of Michigan study found.
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The nonbank's results add to other indications that the first quarter's "higher for longer" rate scenario had an upside for efficient servicing operations.
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The latest rate increases contributed to a 1% drop in purchases from the previous week and 15% annually, according to the Mortgage Bankers Association.
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The top five producers had an average dollar volume of VA and USDA loans of more than $35 million in 2023.
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The JPMorgan Chase CEO took aim Tuesday at the proposed Basel III endgame rules, hindrances to mergers and bureaucratic burdens. "I would love to have a more productive relationship with regulators, but I think it takes conversation," Dimon said.
April 24