Federal Housing Finance Board Chairman Ronald Rosenfeld has warned Congress that it would be very difficult to shrink Fannie Mae's and Freddie Mac's portfolios without causing serious damage to the profitability of the government-sponsored enterprises.Mr. Rosenfeld told the Senate Banking Committee that Fannie's and Freddie's mortgage portfolios are far larger than is necessary to provide liquidity for the secondary market. However, because of their narrow charters, it would be very difficult for them to replace this source of income, he argued. "If the mortgage portfolio is substantially reduced, as some have suggested, the deterioration in profits could have serious consequences," Mr. Rosenfeld warned. Congress is considering legislative proposals to allow a new GSE regulator to limit the size of the GSE portfolios. However, Congress is not expected to set any specific caps or call for any specific dollar reductions. Concerning the Federal Home Loan Banks, Chairman Rosenfeld said he will be issuing guidance this summer that would place some form of cap on the size of the mortgage portfolios held by individual FHLBanks.
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The increasing frequency and severity of droughts was top of mind for panelists at AmeriCatalyst's "Going to Extremes" conference Thursday.
6h ago -
In a Senate hearing, Director Sandra Thompson said a raise to the required income threshold provided to affordable housing was on the table, while housing regulators also faced questions related to property insurance hikes and title insurance waivers.
7h ago -
The nonpayment rate for non-qualified mortgages is up 21 basis points from February and 134 basis points from March 2023, Morningstar DBRS said.
April 18 -
The government mortgage-bond guarantor will require additional information on foreclosure prevention actions, and retire some forbearance reporting.
April 18 -
But views are split, at least in the near-term on whether rising mortgage rates are holding back the Spring home purchase season.
April 18 -
The top five producers had an average dollar volume of FHA loans of more than $50 million in 2023.
April 18