Brief A Modest Recalibration of GSE Pricing
An Analysis
Jim Parrott
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This author presents a brief analysis of the April 20, 2015 announcement by the Federal Housing Finance Agency (FHFA) to recalibrate government-sponsored enterprise (GSE) pricing. After describing the modest changes, the author concludes that with these moves and their contemporaneously announced changes to the eligibility requirements for mortgage insurers, the FHFA has managed to both better price their risk and pave the way for a more stable mortgage insurance industry, all without significantly impacting either the GSEs’ bottom line or the cost to the consumer.
Research Areas Wealth and financial well-being Housing finance Housing
Tags Federal housing programs and policies Housing markets Housing and the economy Single-family finance Agency securitization Credit availability Housing finance reform Homeownership Financial products and services Wealth inequality Finance
Policy Centers Housing Finance Policy Center