Fannie to Share Data on 18 Million Mortgages to Woo Risk-Takers
Fannie Mae will release performance information for more than 18 million individual mortgages, joining rival Freddie Mac in taking the step as the government- controlled firms prepare to share risk with private investors.
The loan-level data being released covers 30-year, fixed- rate mortgages sold to or guaranteed by the company between January 2000 and March 2012, Washington-based Fannie Mae said today in an e-mailed statement. McLean, Virginia-based Freddie Mac said March 21 it would release similar information.
“Our goal is to enable better modeling and understanding of the credit performance of Fannie Mae loans,”Andrew Bon Salle, an executive vice president at the company, said in the statement. “Bringing private capital in to share some credit risk will help lay the foundation for a stronger mortgage finance system for the future.”
The Federal Housing Finance Agency, the regulator overseeing the conservatorships of Fannie Mae and Freddie Mac (FMCC) since they were seized by the U.S. in 2008, is seeking to reduce their role in the residential-mortgage market, where government- backed loans now account for more than 85 percent of lending. As part of the effort, the FHFA has been directing the companies to raise their bond-guarantee fees and put sharing risk on $60 billion of home loans among executives’ goals for this year.