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FHFA Director Talks About The Future Of Fannie Mae, Freddie Mac

Value Walk, By Michael Ide

Speaking at the Mortgage Bankers Association Annual Convention earlier today, Federal Housing Finance Agency director Mel Watt laid out some of the changes that he’s working on along with Fannie Mae / Federal National Mortgage Assctn Fnni Me (OTCBB:FNMA) and Freddie Mac / Federal Home Loan Mortgage Corp (OTCBB:FMCC) to improve credit availability and move towards the common securitization platform (CSP). But all this activity seems to contradict the story that FHFA is in the process of winding down the GSEs over the next several years.

One of the changes meant to prevent Fannie Mae / Federal National Mortgage Assctn Fnni Me (OTCBB:FNMA) and Freddie Mac / Federal Home Loan Mortgage Corp (OTCBB:FMCC) from getting stuck with defective mortgages like they did during the financial crisis is the Representation and Warranty Framework, which lets the agencies force sellers to buy loans back at any point, the life-of-loan exclusions.

Read the full article: FHFA Director Talks About The Future Of Fannie Mae, Freddie Mac