WHAT'S IMPORTANT NOW
WINTER 2025-26
​
Week of January 04, 2026
​​
The White House directed Fannie Mae and Freddie Mac to purchase up to $200bn in mortgage bonds, a plan to help reduce mortgage rates and alleviate the housing affordability concerns of millions of Americans. Experts predict this could lower 30-year mortgage rates between 15 - 50bp.
The GSEs had for several years used their balance sheet to invest in mortgages and earn the spread between their debt and the mortgage yield. This practice was discouraged after the housing crisis and the GSEs were forced to pare back their portfolio to de-risk. It is unclear whether this directive to purchase mortgages will increase the risk on the balance sheet of Fannie Mae and Freddie Mac for taxpayers.
Purchasing mortgages helped to spur the economy and lower rates in times of crisis (COVID, housing), but the Fed had stopped those purchases, and their portfolio was winding down (see chart below). With the Fed's independence and Powell and the White House disagreeing over several issues, it is much more straightforward for the White House to direct the GSEs to purchase MBS.
During all markets, but especially in volatile times, your business needs to ensure
it is being managed properly and conservatively to yield success today and for generations.
HedgeAdvisory can help through our proven proprietary hedging software
and consultative approach to managing risk.
Call us today at (410) 207-9907 to set up an appointment.
HedgeAdvisory
Real-Time Data
Real-Time Analytics
Better Loan Sale Decisioning
TM
The Volatile Rate Environment
With markets in flux, now is the time to utilize an active hedging strategy.
The Solution: HedgeAdvisor
Our hedging toolkit simplifies the hedging process through transparent, reliable, and accurate data reporting which will have you ready to hedge in just 30 days. Plus, no personally identifiable information (PII) is ever exchanged or transmitted.
®
The Advantage: HedgeAdvisory Services
​
-
Get the most revenue from the business you originate while maintaining safety and soundness
-
Lead clients' efforts in submitting and obtaining agency approvals, agency set-up, committing, delivery, and securitization
-
Transition clients from best efforts service-released to mandatory servicing-retained
-
Assess clients' risk tolerances and provide risk-management strategies
-
Create custom reporting for accounting, operations, production support, and agency securitizations
-
Expand product offerings
-
Devise hedging and loan sale strategies
-
Design products and procedures for each client's needs
​
Our team works with you every step of the way to manage market fluctuations
Contact us at: (410) 207-9907