Widening Fannie/Freddie Securities Pricing Draws Concern

Warehouse

The differential in pricing between Fannie Mae and Freddie Mac MBS has widened over the past year despite a high level of refinancings and issuance. But concerns are growing that investorsÂ’ preference for Fannie mortgage-backed securities could increase even more as refinancings decline later this year, according to officials at the Mortgage Bankers Association. Both GSEs are wards of the federal government.

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