The US Treasury’s plan to reform the country’s housing system is expected to level the playing field between the GSEs and the private sector (SCI 6 September). However, a reduced GSE footprint will also impact credit risk transfer and multifamily CMBS volumes.
Under the reforms, the FHFA is set to examine whether the loans the GSEs are buying support their mandate, including whether investor loans and large balance loans help low income groups.
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