The MBA argues that FHLB advances would offer REITs a cheap alternative to repo financing. One way to offset the added risk posed by REITs would be to increase the haircuts on their collateral requirements.
The steep fees to sell forbearance loans to the GSEs have led to tighter underwriting standards, which disproportionately impact borrowers of color, House Financial Services Committee Chair Maxine Waters said.
Fannie and Freddie issued a staggering $880 billion of single-family MBS during the first half of 2020, up 78.5% from the first three months of the year. Volume peaked in June as refi activity continued to surge.