Fannie Mae-No Politics (FNMA)

[clarencebeaks21]

Some limits are sensible, to avoid layering of risk in certain concentrations. But the objections I hear about are where Calabria set arbitrary portfolio caps via this “letter” without a heads-up. That’s a tough one to swallow for lenders. No lead time. Plus the cap is a ‘hard stop’ with a rolling 12-month calculation.

I am aware of some lenders cut out of these market segments right after Q2. So for the rest of the next 2 quarters in 2021, their sales must be $0 just to STAY AT the cap. Why? Again: no lead-time, and a 12-month denominator. Who besides North Korea regulates this way?

Lenders have forward commitments, not to mention their active open loans, and none were allowed to clear their pipelines or any other leeway. The letter authorizes Calabria to issue exceptions, but he didn’t. What an A$$clown.