Obama’s reelection means more aggressive federal housing policy: Annaly CEO

TRD New York /
Nov.November 07, 2012 09:00 AM

Annaly Capital Management, the largest REIT buying mortgage debt, predicts that the reelection of President Obama means increased “policy meddling” in the mortgage market, Bloomberg News reported. In a conference call yesterday, Annaly CEO Wellington Denahan-Norris said she expects more aggressive housing policies and new efforts to fuel refinancing among borrowers with government-backed loans.

For those who invest in the $5.2 trillion market for government-backed mortgage securities, Obama’s victory means a slew of possible changes — including potential for a new overseer for Fannie Mae and Freddie Mac, who could expand Obama’s refinancing push, and more  “hawkish” Federal Reserve chairman, according to Bloomberg.

Obama may eventually allow borrowers to keep low-rate mortgages or transfer them to home buyers. According to Denahan-Norris, this would slow prepayments in the longer term.

“There was a time in the past that mortgages were assumable and if house prices don’t allow for mobility in the system, I could see them instituting policy that would make it so that people could still move around and maintain a very low-coupon mortgage,” Denahan-Norris said. [Bloomberg]Christopher Cameron

 

Related Articles

arrow_forward_ios
Wall Street investors are prepared to buy and turn single-family homes into rentals when forbearance programs expire and homeowners look to sell. (iStock)

Wall Street investors bet on single-family rentals as mortgage payments stack up

Wall Street investors bet on single-family rentals as mortgage payments stack up
(iStock)

Landlords lost about $9B in rental payments last quarter: report

Landlords lost about $9B in rental payments last quarter: report
Fed Reserve Chairman Jerome Powell (Getty)

What low interest rates through 2023 means for real estate

What low interest rates through 2023 means for real estate
As rates hold steady at 3 percent, the average loan hit another record high: $370,200 (iStock)

Size does matter: Mortgage loan average swells to new record

Size does matter: Mortgage loan average swells to new record
Ed Adler and Wendy Silverstein (Getty)

Wendy Silverstein, Ed Adler launch loan restructuring biz

Wendy Silverstein, Ed Adler launch loan restructuring biz
The rates for a 30-year fixed-rate mortgage dropped 7 percentage points for the week ending September 10, reaching 2.86 percent. (iStock)

Mortgage rates notch new low

Mortgage rates notch new low
The average size of a home loan hit a new record of $368,600 (iStock)

Mortgage size hits record high as rates slip

Mortgage size hits record high as rates slip
Mortgage refinancings jumped 200% the second quarter, a record high, as lenders provided over $1 trillion in home loans. (iStock)

Mortgage refinancings hit record high in Q2

Mortgage refinancings hit record high in Q2
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...