Relevant:
- Hedge Funds Drawn to Fannie-Freddie Risk-Sharing Plan: Mortgages
- Darling to Agree on Guarantee for U.K. Mortgage Bonds
- The Trump Admin's Fannie and Freddie "Reform" Plan is A Cronyism Rehash
- US agency issues subpoenas on private mortgage bonds
- Swiss UBS paying $885M to settle US claims over sales of mortgage bonds to Fannie, Freddie
2011-10-17 — reuters.com
``The U.S. government is considering having mortgage financiers Fannie Mae and Freddie Mac sell some bonds without a federal guarantee as a way to lure private investment into the mortgage market, according to sources familiar with the plan.''
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FirstCapital at 02:01 2011-10-18 said:
This idea is just in the concept stage. The administration could consider a variety of ways to get investors to take on more credit risk. The administration and housing regulators are eyeing the possibility of using derivatives or relying on greater mortgage insurance coverage for the loans underlying the bonds to spur private-sector interest. Any final plan on investor risk sharing would require the approval of the Federal Housing Finance Agency, which oversees Fannie Mae and Freddie Mac. This approach under consideration would reduce the long-term risk exposure of Fannie and Freddie. Together with the Federal Housing Administration, these companies now fund roughly 90 percent of all new U.S. mortgages. Permalinkadd a comment | go to forum thread
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