FHFA Leader Blocking a Much Needed Bailout

Mark Calabria, the Director of the Federal Housing Financing Agency (FHFA), is taking a lot of heat for his role in blocking aid to independent mortgage lenders and loan servicers.  As the person in charge of regulating both Fannie Mae and Freddie Mac, he seems stubbornly committed to not helping large companies like Quicken, Freedom Mortgage or any others that are currently in serious financial trouble as a result of mortgage payment deferrals.  Although many believe he is firmly held to executing President Trump’s plan to detach Fannie and Freddie from any government responsibility, he says that he is not acting based on political motives.  He simply doesn’t see the need to help and believes they will be fine on their own.  Mark my words, this man is wrong.  Without a bailout, the mortgage industry will be in serious trouble.  Further, when the industry eventually receives a bailout, Mark will have to back pedal out of his seemingly unjustifiable position.

 

Stocks are falling sharply this morning, eliminating yesterday’s unjustified gains.  Investors seemed shocked to learn that Retail Sales dropped 8.7% to the lowest level in recorded history.  With the majority or retailers shut down, this number seems completely logical to me.  Stock investors should not be surprised.

 

With the Fed controlling the price of mortgage bonds, volatility in the market in muted.  We will maintain a locking bias.

Get your custom rate quote in 30 seconds

See your customized rate and fee options without sharing any personal information

See Purchase Rates See Refi Rates

Additional Articles

Still Need Help?