The Institutional Risk Analyst

“The boards of the GSEs don’t have a fiduciary duty to the Enterprises,” Pulte noted. “They have a fiduciary duty to the conservatorship.”

Some of the smaller holders of MSRs may ask themselves if selling right now is not the best strategy over a 36-48 month horizon. 

There is an old rule on Wall Street that industry sectors like airlines and auto manufacturers are trades rather than investments...

Selling the Treasury's control position in the GSEs while dragging the furious shareholders along behind is not an attractive opportunity

Citi is a subprime lender. They should be directly involved in government lending.

Industry leaders believe that the FHFA wants the GSEs to offer issuers "repurchase insurance" to the tune of 25bps per loan.

With a 75bp average total gfee, would the market for private label MBS return? Or would conventional lending volumes simply crater?

The Federal Open Market Committee has arguably lost control of monetary policy and has placed America's banks in grave risk.

The banks have left the government market. Now Ginnie Mae seems bound and determined to drive the IMBs out of government lending as well

Issuing CMOs via the GSEs could help the FOMC out of its trading mess, but represents a monumental irony.

We see a bright future ahead for the private label loan market....

The Fed’s chief concern is keeping the Treasury debt market open and functional. Liquidity includes cash and risk-free collateral...

Sooner or later someone has to eat those forgone cash flow losses....

Given that IMBs now service two-thirds of all 1-4 family residential mortgage loans, the risk to the nonbanks from COVID is growing...

The GSEs will never be worth more than about $250 billion regardless of how much additional taxpayer money is contributed....