The latest economic and policy trends facing mortgage servicers

Join this webinar for an in-depth roundtable discussion on economic and policy trends impacting servicers as well as a look ahead at strategies servicers should employ in the next year.

2021 RealTrends Brokerage Compensation Report

For the study, RealTrends surveyed all the firms on the 2021 RealTrends 500 and Nation’s Best rankings, asking for annual compensation data for the 2020 calendar year.

Steve Murray on the importance of protecting property rights

In this episode, Steve Murray, RealTrends advisor and industry stalwart, discusses some of the issues facing private property rights, including how a case in Germany could potentially affect U.S. legislation.

Lenders, it’s time to consider offering non-QM products

The non-QM market is making a comeback following a pause in 2020. As lenders rush to implement, Angel Oak is helping them adopt these new lending products.

Politics & Money

Calabria says he’s willing to wipe out Fannie Mae, Freddie Mac shareholders

Remarks came during three-hour House hearing on affordable housing

Mark Calabria, director of the Federal Housing Finance Agency, said he’s willing to wipe out Fannie Mae and Freddie Mac shareholders if needed to protect taxpayers from another bailout.

“I’m working for the taxpayers,” Calabria said during testimony Tuesday to the House Financial Services Committee. “If the circumstances present themselves where we have to wipe out the shareholders, we will.”

The FHFA director was responding to a question from Rep. Bill Foster, D-IL, who responded to Calabria’s pledge by saying: “I look forward to that.” Fannie Mae and Freddie Mac back about half of the nation’s mortgages.

Calabria added he believes shareholders should have lost their stakes in the private companies in 2008 when the two government-sponsored enterprises, or GSEs, were taken over during the mortgage meltdown.

Instead, they were put into conservatorship – not receivership, which would have been a clearer legal situation – and the government received new senior preferred stock and common stock warrants amounting to 79.9% of the companies.

Fannie and Freddie shares that once traded over $60 each and were considered almost as safe as U.S. Treasuries because of the implied federal backing were suddenly worth pennies. That’s when hedge funds like Pershing Square and Wall Street firms like Blackstone stepped in and began scooping them up.

Last month, investors won a lawsuit on appeal that advanced their position that the government’s forced sweep of GSE profits into the Treasury was illegal, causing the shares to soar.

“I’m on the record as saying in 2008 what we should have done is wipe out the shareholders,” Calabria told Congress in the Tuesday hearing.

But, Calabria said, his mandate now is to put the companies on firm footing and release them from conservatorship or, if warranted, put them into receivership – and he made clear his intent was the former.

Treasury Secretary Steve Mnuchin, who sat next to Calabria at the witness table at the Tuesday hearing, last month released the Trump administration’s long-awaited “blueprint” laying out plans to reform the nation’s housing finance system and release Fannie Mae and Freddie Mac from conservatorship, calling it the “last unfinished business of the financial crisis.”

Three weeks ago, the FHFA announced it would allow Fannie and Freddie to rebuild a portion of their capital reserves to a total of $45 billion combined. The two companies have paid pack taxpayers for their bailouts, plus more than $100 billion on top of it.

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3d rendering of a row of luxury townhouses along a street

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