Fannie Mae-No Politics (FNMA)

[FOFreddie]

Thanks for the post Guido. I know you mentioned the recent post by Tim Howard regarding the CRT's - seems like the underwriting fees for the CRTs are more of the same in Washington DC. Do you or anyone else know what TH means about the excessive underwriting fees? Here is an excerpt:

"In the late spring of 2021, after it became apparent that the companies had essentially been looted, we started to investigate the details of how CRT transactions were underwritten. Our first shock was learning that the Wall Street underwriters earned fees that were multiples of the net values of CRTs to the companies. These Wall Street underwriters—you can guess the firms—were supposed to protect Fannie and Freddie, but instead they joined in robbing their clients. Of course, the CRT investors, primarily hedge funds and real estate investment trusts, were also clients of these Wall Street firms"

https://howardonmortgagefinance.com/ The CRT Charade January 16, 2024 Post

Seems like something that the FHFA OIG should investigate? How are the underwriters selected? How are the fees determined? Are there any conflicts or special interests or relationships at the underwriters that are essentially looting the GSES?

Potentially a great political issue for DJT and the GOP - Administrative Agency ran amok - using a Special Conservatorship status to benefit the politically connected and benefactors of selective favoritism.