Secondary

Because the FHFA drew down vast amounts of taxpayer funds to "pay" for accounting provisions that would later be reversed, the GSEs remained saddled with in senior preferred stock that paid a dividend rate of 10%, until that rate was revised upward.

The underlying loan is fixed-rate and amortizes on a monthly basis over a term of 10 years, the longest loan tenure to date that has backed a single-family rental securitization.

A report due next week on the Federal Housing Administration's financial health is expected to show that the agency's reserve fund has significantly improved over the past year.

Mel Watt, director of the Federal Housing Finance Agency, has set off a political tempest.

Fannie Mae has entered into deals with JPMorgan Chase and other companies that transfer some of the credit-loss risk on mortgage-backed securities to investors. Not only do these deals reduce the danger that taxpayers could be forced to cover the GSEs losses, they may help make mortgages more affordable.

Republicans are unlikely to push the ball forward on reform of the federal housing agencies, but Congress has a number of other opportunities to make changes that will encourage mortgage lending.

Mortgage rates fell slightly compared to last week, according to Freddie Mac.

Applications for new home purchases picked up in October, particularly for higher-priced properties, according to the Mortgage Bankers Association.

Regulators are preparing rules to curb financial risks of expanding nonbank mortgage companies after investigating homeowner complaints that include improper foreclosures and unauthorized fees.

A new multifamily investment product will for the first time allow Freddie Mac to buy and guarantee bonds backed by multifamily loans that were originally underwritten by private entities.