zerohedge.com / By Tyler Durden / 03/04/2013 18:17
In what we are sure will be a BLS job creating moment, Fannie Mae and Freddie Mac will create a common platform for issuing MBS as they wind down operations and plan for a future in which the two companies no longer exist. Big is about to get bigger as Bloomberg reports, these two GOEs will start sharing risk with private financiers in the single-family loan market. FHFA head Ed DeMarco comments that they are beginning to move to a “post-conservatorship world,” though we assume still as explicitly and implicitly guaranteed by the good taxpaying public of America. The merger and creation of a joint securitization company with the goal of executing $30bn each in transactions partnered with the private sector will attempt to reduce that taxpayer load and “ease the transition from where we are today to wherever lawmakers decide the country ought to ultimately go.”
Fannie Mae (FNMA) and Freddie Mac will create a common platform for issuing mortgage-backed securities as they wind down operations and plan for a future in which the two companies no longer exist, their regulator said today.
The government-owned enterprises also will start sharing risk with private financiers in the single-family loan market, aim to reduce their multifamily housing business by 10 percent and continue raising fees they charge to guarantee securities, Edward J. DeMarco, the Federal Housing Finance Agency’s acting director, said on a conference call with reporters.
DeMarco unveiled his agency’s goals for Fannie Mae and Freddie Mac as the two companies head into their fifth year under U.S. conservatorship. FHFA is shrinking operations while waiting for President Barack Obama and Congress to move forward with a broader overhaul of the nation’s housing-finance system.