A cut in the size of mortgages that Fannie Mae and Freddie Mac can finance will likely increase banks’ holdings of so-called jumbo loans rather than boost sales of private home-loan securities, a Wells Fargo & Co. executive said. About $30 billion to $50 billion of additional mortgages that are larger than the government-supported mortgage-finance companies can buy would be written annually if the reduction is put in place, said Anthony “Tuck” Reed, senior vice president of capital markets at Wells Fargo’s mortgage unit.
Smaller Fannie mortgage limits unlikely to fuel mortgage bonds
Most Popular Articles
Latest Articles
HUD details funding, policy support for green homes and climate resilience
HUD highlighted its investments in green energy and climate resilience for housing after also launching an initiative to combat extreme heat.