GSEs Strictly Enforcing Lender Loan Repurchase Agreements

"Large lenders are most often financial institutions that were required to hold preferred shares of GSE stock as part of their core capital. With those shares virtually worthless, lenders are naturally less sympathetic to the demands made by the GSEs to make them whole on losses. As private enterprises the GSEs could make the business decision to settle their claims with lenders. But with the federal government on both sides of the trade, this becomes an enigmatic situation with no easy solution."