How to simplify the appraisal process for everyone in today’s hot market

The housing market isn't slowing down anytime soon, and appraisers need to make sure they have the right tools to manage the high demand.

Who’s afraid of the PSPA?

Stakeholders are divided over whether, in light of proposed changes to its capital rule, the FHFA should retool its agreement with the U.S. Treasury and remove policies some say never belonged there in the first place.

Back to the Future of Mortgage Lending

This webinar will discuss what’s to come in the future of mortgage lending by analyzing past trends in the industry, evolving consumer behaviors and demographics of the industry’s production capacity.

Logan Mohtashami on jobs data and the bond market

In this episode of HousingWire Daily, Logan Mohtashami discusses what the jobs data, changes in the bond market, and the Omicron variant could mean for housing.

MortgageReal Estate

Fannie, Freddie fail Dodd-Frank severe stress test

Would need nearly $100 billion bailout in economic adversity

The Federal Housing Finance Agency released the latest results of the Dodd-Frank Act stress test results for Fannie Mae and Freddie Mac.

Both of the GSEs failed the test, showing they would need a bailout in the event of a severe economic crisis, the stress test results showed.

The 2017 DFAST Severely Adverse scenario is based upon a severe global recession which is accompanied by a period of elevated stress in corporate financial and commercial real estate markets.

The stress test results showed the GSEs would require an additional combined $34.8 and $99.6 billion. While they would still need a bailout, this is an improvement from last year’s $125.8 billion.

Through the second quarter this year, Fannie Mae paid out a total $162.7 billion to the U.S. Treasury, while Freddie Mac paid out a total of $108.2 billion during that same time period.

An article from MarketWatch explains the scenario the stress tests creates:

Under the hypothetical scenario, a severe global recession with “elevated stress” in corporate financial and commercial real estate markets plays out over nine quarters from 2017 to early 2019. GDP would decline as much as 6.50%, unemployment would peak at 10%, and consumer price inflation would decline to about 1.25%.

Additionally, equity prices would decline about 50% even as volatility picks up. Home prices would fall by 25%, and commercial real estate prices by 35%.

Most Popular Articles

Pending home sales shock 2021 housing crash bears

Pending home sales beat estimates and we can now say the 2021 housing crash bears are even worse forecasters than the 2020 housing crash bears.

Nov 29, 2021 By

Latest Articles

Fed pulling back from the MBS market cautiously

Even as it eyes accelerating tapering, the Fed continues to replace maturing assets in its $2.6 trillion mortgage-backed securities portfolio

Dec 07, 2021 By
3d rendering of a row of luxury townhouses along a street

Log In

Forgot Password?

Don't have an account? Please