Today, the U.S. mortgage market is facing difficult times. Fannie Mae and Freddie Mac, the two government-sponsored enterprises that finance most of the country’s mortgages, are under pressure as their customers are now seeing losses and slim profit margins. This has caused a great deal of upheaval in the industry.
Despite this turmoil, the GSEs are currently making gains and enjoying a period of success. In this environment, the policies of the GSEs are enabling them to stay afloat and yield greater rewards than their customers. This is leading to increased profits or at least more modest losses on their investments.
The implications of this situation are far-reaching. GSE customers are feeling exposed and vulnerable as their investments take a turn for the worse. On the other hand, the GSEs are in a much better position to reap the rewards from their altered policies.
Summary:
• GSEs (Fannie Mae and Freddie Mac) are under pressure as their customers are seeing losses or slim profit margins
• Despite this, GSE policies have enabled them to stay afloat and yield greater rewards than their customers
• GSE customers are feeling exposed and vulnerable, while the GSEs are in a better position to reap the rewards from their altered policies
You can read this full article at: https://www.housingwire.com/articles/opinion-the-gses-are-targeting-imbs-on-buybacks/(subscription required)
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