CRS explained that there may not be an easy path to the GSEs exiting conservatorship, as they will still have to achieve their mission-oriented statutory goals. These include obligations to (i) purchase certain percentages of mortgages for families with very low and extremely low incomes, (ii) preserve manufactured, rural and affordable housing, and (iii) make cash contributions to the
CRS cautioned that the GSEs' ability to maintain capital has not been observed under different interest rate, housing market and business cycle environments. As a result, predicting the GSEs' financial condition under the recently imposed capital regulatory framework is a "challenge," the research service said.
Primary Sources
- CRS:
Fannie Mae andFreddie Mac - Recent Administrative Developments
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
NY 10281
Tel: 2125046000
Fax: 2125046666
E-mail: cwtinfo@cwt.com
URL: www.cadwalader.com
© Mondaq Ltd, 2021 - Tel. +44 (0)20 8544 8300 - http://www.mondaq.com, source