GSEs expected to unload delinquent loans after Treasury change via HousingWire

Analysts expect Fannie Mae and Freddie Mac to begin unloading more distressed mortgages from their portfolios after the Treasury Department accelerated their wind down.

Both government-sponsored enterprises will now be required to cut their retained portfolios by 15% annually over the next several years until hitting $250 billion. Treasury increased this from a 10% annual reduction. Fannie holds $672 billion and Freddie has $581 billion in their portfolios as of June, according to their latest monthly summary reports.

"However, it should be noted that the GSEs are currently reducing their investment portfolio at least this much," said analyst Sarah Hu of RBS Securities.

Read more...GSEs expected to unload delinquent loans after Treasury change | HousingWire