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.

Zillow analyst on whether home prices can keep climbing

Today’s episode of HousingWire Daily features an interview with Nicole Bachaud, as she discusses annual and monthly home price appreciation growth, rising inventory levels and rent prices.

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

FHFA names advisor for massive IPO of Fannie Mae and Freddie Mac

Houlihan Lokey Capital will create "roadmap" for GSEs to exit conservatorship, Calabria says

The watchdog for Fannie Mae and Freddie Mac hired investment bank Houlihan Lokey Capital to advise it on what is likely to be the largest public share offering in U.S. history.

The Federal Housing Finance Agency said on Monday Houlihan Lokey Capital will create a “roadmap” that will include business and capital structures, market impacts and timing, and available capital-raising alternatives, among other items.

Naming the advisor is the first step in the underwriting process to free the companies known as government-sponsored enterprises, or GSEs, from conservatorship that began during the financial crisis in 2008.

“Hiring a financial advisor is a significant milestone toward ending the conservatorships of the Enterprises,” said FHFA Director Mark Calabria. “The next major milestone for FHFA is the re-proposal of the capital rule, which will happen in the near future.”

The size of the share offering may be as high as $200 billion, according to sources. In comparison, the largest IPO in history was last year’s offering of Saudi Aramco, the Saudi Arabian government’s petroleum and natural gas company. It raised $25.6 billion on Dec. 5, beating Alibaba’s $25 billion IPO in 2014.

For the record, offering shares of Fannie Mae and Freddie Mac technically wouldn’t be “initial public offerings,” because Fannie Mae began trading on the New York Stock Exchange in 1968, and Freddie Mac began trading on the same exchange in 1989.

The “offering” would be the 80% of Fannie Mae and Freddie Mac held by the federal government since 2008.

The main reason for the shaky finances that prompted the takeovers were investments in private-label subprime mortgage bonds, containing loans that didn’t qualify to be backed by the two companies but were bought as a way to fulfill their Congressional mandate to invest in affordable housing.

Shares of the companies once traded above $68 and were considered as safe as U.S. Treasuries because of an implied government backing. They were kicked off the NYSE after their government takeovers and became penny stocks. In November 2008, you could have bought a share of Fannie Mae for 54 cents. Today, it would cost around $3.

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

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