There is a "wide and sophisticated pool" of mortgage investors who could pick up the slack if Fannie Mae and Freddie Mac reduce their investments in mortgage assets, according to a high-ranking Treasury Department official."With an appropriate phase-in period, we believe that our capital markets could adjust to a significant reduction in the presence of the GSEs as mortgage investors," said Treasury Under Secretary Randal Quarles. In building a case for portfolio limits, Mr. Quarles noted that the two government-sponsored enterprises would continue to play a "vital" role in the secondary mortgage market if they are forced to cut back on the size of their mortgage portfolios. "Their securitization and guarantee activities are now an integral and large part of the fabric of our housing credit markets and, as such, these businesses serve well the original GSE mandate," he said. The Treasury official told an international banking group that he remains "hopeful" that progress can be made in passing a GSE regulatory reform bill this year. However, the legislation in the Senate appears to be stalled due to the Bush administration's insistence on portfolio limits. The two GSEs have combined assets of $1.4 trillion. "We'd like to see these holdings substantially reduced," Mr. Quarles said.
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A federal judge in Texas dismissed the Consumer Financial Protection Bureau's medical debt rule and prohibited states from passing their own laws prohibiting medical debt on credit reports.
5h ago -
Dr. Mark Calabria takes on the additional role of chief statistician of the United States; retired Ally Bank executive Diane Morais has joined First Citizens Bancshares' board of directors; MainStreet Bank has promoted Alex Vari to chief financial officer; and more in this week's banking news roundup.
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While refinances are behind the latest increases, the pace of purchase activity may be a stronger indicator of where the housing market sits.
10h ago -
The share of economists expecting a September rate reduction grew in the July Wolters Kluwer survey, but the October or later percentage also increased.
10h ago -
Rising home prices and softening sales offer a mixed view of a market that some say is shifting to favor buyers.
11h ago -
The notes are backed by home improvement installment loans originated by approved dealers in Foundation Finance Company's network.
11h ago