Fannie Mae And Freddie Mac Will Update Uniform Residential Loan Applications In November 2020
The Federal Housing Finance Agency announced three years ago that they were changing the Uniform Residential Loan Applications used by the lending industry. It will the first change in 20 years. The GSEs later dictated that lenders would be required to begin using the new loan application by February 1, 2020.
But that all changed earlier this year. The GSEs delayed the mandatory use of the redesigned Uniform Residential Loan Application.
The FHFA postponed the implementation of the URLA to an unspecified date. However, the GSEs revealed Wednesday a new date for the mandatory use of the new URLA.
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FHFA Is Preparing And Interviewing Wall Street Investment Banks To Handle What Will Be The Largest IPO In History
The FHFA is preparing Fannie Mae and Freddie Mac for a record-setting IPO. The FHFA is interviewing Wall Street firms to handle a public offering of the shares of the nation’s two largest mortgage financiers that would dwarf any IPO in history.
The Federal Housing Finance Agency has been interviewing Wall Street investment banks. Fox cited anonymous sources directly involved in the process.
According to Fox News:
Winning the adviser appointment would be a coveted one and potentially lucrative given the size of the offering.
The government told investment banks that offering is expected to be somewhere between $150 billion and $200 billion.
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FHFA Director Mark Calabria Threatens To Wipe Out Fannie And Freddie Shareholders To End GSE Conservatorship
FHFA Director Mark Calabria said he’s willing to wipe out Fannie Mae and Freddie Mac shareholders to end the government conservatorship. Shareholders include retirement funds and pension funds. Fannie Mae and Freddie Mac also back about half of the nation’s mortgages. Calabria took charge of FHFA in January. He replaced Mel Watt
Calabria told the House Financial Services Committee:
I’m working for the taxpayers. If the circumstances present themselves where we have to wipe out the shareholders, we will.
Instead, they were put into conservatorship. The government received new senior preferred stock and common stock warrants. The government took a 79.9% stake in the GSEs as collateral for the bailout.
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