Smaller Fannie mortgage limits unlikely to fuel mortgage bonds

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.

Most Popular Articles

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

Log In

Forgot Password?

Don't have an account? Please