Ed DeMarco- How to Restart the Private Market for Mortgage Credit

Ed DeMarco- How to Restart the Private Market for Mortgage Credit

Ed DeMarco, Bryan Whalen, Ed Royce – How to Restart the Private Market for Mortgage Credit

Ed DeMarco, Senior Fellow in Residence, Milken Institute Center for Financial Markets; Former Acting Director, Federal Housing Finance Agency



This mining and metals fund is having a strong year so far

Cubic Corporation Chris Hohn favorite hedge fundsThe Delbrook Resources Opportunities Master Fund was up 9.2% for May, bringing its year-to-date return to 33%. Q1 2021 hedge fund letters, conferences and more Dellbrook is an equity long/ short fund that focuses exclusively on the metals and mining sector. It invests mainly in public companies focused on precious, base, energy and industrial metals Read More

Lindsey Johnson, President and Executive Director, U.S. Mortgage Insurers
Stanford Kurland, Founder, Chairman and CEO, PennyMac Financial Services Inc.
Ed Royce, U.S. Representative, California; Chairman, House Foreign Affairs Committee
Bryan Whalen, Group Managing Director, U.S. Fixed Income, TCW

The private market for mortgage credit risk evaporated after the financial crisis. At the peak of the crisis, the default risk on more than 90 percent of new mortgage production was explicitly backed by taxpayers, principally through the FHA and VA loan programs and through the Treasury Department’s financial support of Fannie Mae and Freddie Mac. Even today, taxpayers still back roughly three of every four new mortgages through these entities. The past several years have seen efforts by regulators, lawmakers and market participants to further reduce taxpayer risk, but the process has been slow. Since 2013, Fannie Mae and Freddie Mac have been experimenting with credit risk transfer deals in which they sell some portion of the mortgage credit risk on new mortgages to market participants. Since 2014, the Treasury Department has directly engaged with industry to restart the private mortgage securitization market. This panel will assess the progress to date with these efforts and explore the conditions necessary for a restoration of a deep and liquid market for mortgage credit risk backed by private capital rather than taxpayers.

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