In TBA We Trust
As anticipated, today’s Senate Banking housing-finance reform hearing shows that stuff’s up, with the panel planning a mark-up by year-end. Importantly, nary a word about affordable-housing goals was heard, taking a prior liberal-Democratic demand off the bargaining table, and only one Republican (Toomey) espoused the hard Hensarling line on total privatization. Instead, the how-to issues are in play, with critical questions posed on downpayment requirements, underwriting, and capitalization for private guarantors. The Committee seemed unified on the need to preserve TBA and thereby the 30-year FRM.
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