What We're Hearing

Now that Fannie Mae and Freddie Mac are going to buy refinanced mortgages with loan-to-value ratios of up to 125%, what will become of these loans? We’re told lenders can sell them for cash to the GSEs and that perhaps the GSEs will securitize them and sell the bonds to the Federal Reserve. GSE officials told National Mortgage News’ Brian Collins that in some cases the lender can hold the mortgage and receive a guarantee from the GSE. All this is being done under the auspices of the Obama Administration’s ‘Making Home Affordable’ program...