Bibliography of Fannie Mae and Freddie Mac

7th Annual DC Fintech Week Taking Place in Early November 2023

Retrieved on:

Tuesday, September 19, 2023

WASHINGTON, Sept. 19, 2023 /PRNewswire/ -- Dr. Chris Brummer, a distinguished professor of law at Georgetown University Law Center, will host the 7th Annual DC Fintech Week on November 6-8, 2023 in Washington, D.C. This three-day event will bring together thought leaders and innovators in the fintech landscape to dive deep into an inclusive and informative dialogue that shapes the future of finance.

Key Points:

DC Fintech Week is a Global Gathering of Thought Leaders, Innovators, and Regulators, Shaping the Future of Finance
WASHINGTON, Sept. 19, 2023 /PRNewswire/ -- Dr. Chris Brummer, a distinguished professor of law at Georgetown University Law Center, will host the 7th Annual DC Fintech Week on November 6-8, 2023 in Washington, D.C.
Scheduled for November 7th at Fannie Mae's Midtown Center, and November 8th at the International Spy Museum, DC Fintech Week offers a unique and immersive experience for attendees seeking to learn more about the intricate world of fintech.
As a pivotal hub for financial technology policy discussions, DC Fintech Week has extended an invitation to scholars, government staff, nonprofits, and industry professionals to contribute papers to the forum.
And as the fintech landscape continues to evolve, DC Fintech Week remains at the forefront of driving meaningful discussions and fostering connections that are crucial for responsible and innovative fintech development.

Sticking the 'Soft Landing' Remains a Difficult Task

Retrieved on:

Wednesday, August 23, 2023

Bibliography of Fannie Mae and Freddie Mac, Fed, Unemployment, Housing, CPI, Senior, Fannie Mae, Economy, ESR, OTCQB, Sale, ESR Group, Treasury, Risk, Consumer, Growth, Marketing

WASHINGTON, Aug. 23, 2023 /PRNewswire/ -- Recent economic data has pointed to a stronger economy than previously expected, but the current business cycle contours still point to an eventual downturn, according to the August 2023 commentary from the Fannie Mae (OTCQB: FNMA) Economic and Strategic Research (ESR) Group. Given the recent flurry of strong consumption data combined with two consecutive months of annualized Consumer Price Index (CPI) measures coming in close to the Fed's 2 percent inflation target, the ESR Group notes that the odds of a "soft landing" have increased. However, the full lagged effects of monetary policy tightening are still working their way through the economy, according to the ESR Group. Wage growth also likely remains too high to be consistent with 2 percent inflation over the long run, which the ESR Group believes will keep monetary policy tight. Additionally, the ESR Group posits that the recent rise in medium- and longer-term Treasury yields will likely weigh on interest-rate-sensitive sectors in coming quarters. While the ESR Group notes that both the "if" and "when" of a recession are uncertain given the strength of recent economic data and decelerating inflation, their baseline forecast is for one to occur, now expected to begin in the first half of 2024.

Key Points:

However, the full lagged effects of monetary policy tightening are still working their way through the economy, according to the ESR Group.
Wage growth also likely remains too high to be consistent with 2 percent inflation over the long run, which the ESR Group believes will keep monetary policy tight.
Additionally, the ESR Group posits that the recent rise in medium- and longer-term Treasury yields will likely weigh on interest-rate-sensitive sectors in coming quarters.
Regardless of whether the economy enters a recession, the ESR Group forecasts home sales to remain subdued within a tight range.

Recession Remains Likely as Credit Conditions Tighten

Retrieved on:

Friday, May 19, 2023

Optimism, Housing, Bibliography of Fannie Mae and Freddie Mac, Senior, Fannie Mae, ESR Group, Policy, ESR, Economy, Sale, Growth, Management, Fed

WASHINGTON, May 19, 2023 /PRNewswire/ -- The economy is still expected to enter a modest recession in the second half of the year, though unusual dynamics in the current economic cycle continue to complicate forecasting the exact timing, according to Fannie Mae's Economic and Strategic Research (ESR) Group latest monthly commentary. Fundamentally, the ESR Group notes that consumer spending remains unsustainably high compared to incomes and that recession is the typical conclusion to a monetary policy tightening regimen. However, the usual channels through which monetary policy helps slow the economy may be disrupted, as evidenced by recent increases in new auto sales resulting from improving supply conditions and a more upbeat outlook from homebuilders. Still, the ESR Group believes a modest recession is the likeliest outcome – and that its timing remains the principal outstanding question – as the Fed is likely to maintain tighter policy for longer if wage-related inflationary pressures do not subside.

Key Points:

Fundamentally, the ESR Group notes that consumer spending remains unsustainably high compared to incomes and that recession is the typical conclusion to a monetary policy tightening regimen.
Still, the ESR Group believes a modest recession is the likeliest outcome – and that its timing remains the principal outstanding question – as the Fed is likely to maintain tighter policy for longer if wage-related inflationary pressures do not subside.
However, on the multifamily side, the ESR Group continues to expect a significant slowdown in starts later this year resulting from tightening credit conditions, slower rent growth, and higher vacancy rates.
"Housing remains exhibit number one for why we expect the recession to be modest.

UMD Smith Professor, Students Take on Mortgage Climate Risk

Retrieved on:

Thursday, April 27, 2023

Much of the damage occurs to housing, often burdening homeowners and insurers – and ultimately exposing mortgage providers to increased risk.

Key Points:

Much of the damage occurs to housing, often burdening homeowners and insurers – and ultimately exposing mortgage providers to increased risk.
Now a risk expert and his students at the University of Maryland's Robert H. Smith School of Business have developed a new way to quantify the risk.
"Climate risk is complicated because it's a global risk," says Professor of the Practice Clifford Rossi , who spent 25 years in risk management at banks and government agencies before joining the finance faculty at Smith.
The students built a model that leverages machine learning to pinpoint the regions of the country with the highest climate risk and the implications for homeowners and the mortgage industry.

Banking System Instability May Prove Catalyst for Recession

Retrieved on:

Friday, March 24, 2023

Uncertainty, Fed, Housing, Bibliography of Fannie Mae and Freddie Mac, Senior, Federal, Fannie Mae, ESR Group, ESR, Economy, Wealth, Federal Reserve, Growth, Financial crisis, Real estate

WASHINGTON, March 24, 2023 /PRNewswire/ -- Due to stronger-than-expected economic data, Fannie Mae's Economic and Strategic Research (ESR) Group revised upward its first quarter 2023 GDP forecast, which it finalized prior to the recent financial turmoil, and now projects a modest recession to begin in the second half of 2023, compared to the previously forecasted second quarter of 2023. While uncertainty has risen following turbulence in the banking sector, the ESR Group noted in its latest monthly commentary that bank failures often foreshadow economic downturns. As such, the ESR Group believes that the recent events may act as the catalyst that tips an already precarious economy into recession, primarily via the combination of tighter lending standards among small and midsized regional banks and weakened business and consumer confidence.

Key Points:

While uncertainty has risen following turbulence in the banking sector, the ESR Group noted in its latest monthly commentary that bank failures often foreshadow economic downturns.
Instead, it believes the Savings & Loan Crisis from the 1980s to be a better analog, specifically regarding the significant interest rate rises that set in motion banking system stress and the resultant macroeconomic effects that contributed to a modest recession in 1991.
Additionally, the ESR Group posits that ongoing banking instability may affect the availability of jumbo mortgages and residential construction loans due to the high concentration of those originations stemming from small and midsized banks.
"These particular pre-recessionary conditions are not unusual, as bank failures often follow monetary tightening – but this may well be the catalyst for the modest recession we've been expecting since April 2022."

Economy Off to Surprisingly Strong Start in 2023, But It's Not Expected to Last

Retrieved on:

Tuesday, February 21, 2023

Federal Reserve, Fannie Mae, ESR Group, Consumer, Expected, Housing, Sale, Senior, Treasury, Risk, Bibliography of Fannie Mae and Freddie Mac, Optimism, Disinflation, Federal, COVID, ESR, Economy, CPI, Management

WASHINGTON, Feb. 21, 2023 /PRNewswire/ -- Due to economic headwinds from unsustainably high consumer spending relative to income, significant declines in monetary aggregates, an increasingly inverted yield curve, and stickier-than-expected inflationary pressures, the Fannie Mae (FNMA/OTCQB) Economic and Strategic Research (ESR) Group continues to expect the economy to fall into a modest recession and now believe the likely start date will be in the second quarter of 2023. A series of recent data releases, including a blowout labor report, updated seasonal adjustment factors to the Consumer Price Index (CPI) that showed the rate of disinflation has been slower than previously thought, and unexpected robustness in retail sales and manufacturing output growth, presents substantial upside risk to the ESR Group's Q1 2023 GDP forecast. While some of the recently reported economic strength is probably a side effect of abnormal seasonal consumption and hiring/layoff patterns overstating the true strength of the economy, these data releases were consistent with an easing in financial market conditions to start the year. Importantly, it raises the possibility of the Federal Reserve both pushing its federal funds rate target higher than currently expected and keeping it there for longer to meaningful slow economic momentum and inflation, posing larger and longer-term risks to the economy and financial stability.

Key Points:

Additionally, the 10-year Treasury has increased meaningfully in recent weeks, suggesting that mortgage rates are likely to begin rising again.
While we now believe the expected economic downturn will not start until the second quarter of 2023, we still think a mild recession is in the cards."
To receive e-mail updates with other housing market research from Fannie Mae's Economic & Strategic Research Group, please click here .
Changes in the assumptions or the information underlying these views could produce materially different results.

Fannie Mae Selects Five Proposals to Help Advance Racial Equity in Housing through $5 Million Innovation Challenge

Retrieved on:

Wednesday, January 18, 2023

WASHINGTON, Jan. 18, 2023 /PRNewswire/ -- Fannie Mae (OTCQB: FNMA) today announced the selection of five organizations to receive deliverable-based contracts under the Sustainable Communities Innovation Challenge, a nationwide competition to help advance racial equity in housing. Through the Innovation Challenge 2022 (IC22), the company sought innovative, scalable proposals to remove barriers that currently prevent many households, including Black households, from purchasing or renting a home.

Key Points:

WASHINGTON, Jan. 18, 2023 /PRNewswire/ -- Fannie Mae (OTCQB: FNMA) today announced the selection of five organizations to receive deliverable-based contracts under the Sustainable Communities Innovation Challenge, a nationwide competition to help advance racial equity in housing.
"A history of discriminatory housing policies and practices has created profound inequities in the housing system that persist to this day.
Their Fannie Mae contract advances their SCDHC Emporia Pathways Project, which includes the construction of affordable housing.
To view all proposals submitted through the Innovation Challenge, please visit the Sustainable Communities searchable database at http://challengedatabase.fanniemae.com/ .

Economy Expected to End 2022 on Positive Note Ahead of Modest Recession in New Year

Retrieved on:

Monday, December 19, 2022

WASHINGTON, Dec. 19, 2022 /PRNewswire/ -- Following an upward revision to third quarter 2022 real gross domestic product (GDP) and stronger-than-expected incoming personal consumption data to begin the fourth quarter, the economy is now expected to eke out positive growth of 0.4 percent in 2022 before entering a modest recession in the new year, according to the December 2022 commentary from the Fannie Mae (OTCQB: FNMA) Economic and Strategic Research (ESR) Group. The ESR Group views the current rate of personal consumption growth as unsustainable given the combination of a low personal saving rate and an elevated ratio of consumer debt to personal disposable income. With many cyclical indicators continuing to point toward economic contraction, including an inverted yield curve, the ESR groups forecasts 2023 GDP growth to be negative 0.5 percent, an improvement from last month's forecast of negative 0.6 percent; the ESR Group then expects the economy to begin expanding again at a 2.2 percent annual growth rate in 2024. Inflation, as measured by the Consumer Price Index, decelerated again in November, and the ESR Group expects the Federal Reserve to closely monitor historically stickier wage growth metrics to help determine how long it should continue its restrictive monetary policy regimen. With a recession predicted beginning in the first quarter of 2023, the ESR Group notes as plausible a scenario in which the Federal Reserve begins once again cutting the federal funds rate in mid-2023.

Key Points:

The ESR Group modestly revised upward its total single-family home sales projections for 2022 and 2023 to 5.72 million and 4.57 million units, respectively, due to the recent significant pullback in mortgage rates.
To receive e-mail updates with other housing market research from Fannie Mae's Economic & Strategic Research Group, please click here .
Fannie Mae advances equitable and sustainable access to homeownership and quality, affordable rental housing for millions of people across America.
We enable the 30-year fixed-rate mortgage and drive responsible innovation to make homebuying and renting easier, fairer, and more accessible.

Economy Still Expected to Enter (and Exit) Modest Recession in 2023

Retrieved on:

Monday, November 21, 2022

Federal Open Market Committee, Growth, ESR, OTCQB, News, Senior, Housing, Economy, Bibliography of Fannie Mae and Freddie Mac, Fannie Mae, FOMC, GDP, Real estate, Tourism, Management

WASHINGTON, Nov. 21, 2022 /PRNewswire/ -- After rebounding at a 2.6 percent annualized rate in Q3 2022 on the strength of net exports, real gross domestic product (GDP) is projected to turn negative again in the fourth quarter as the temporary boost from international trade moderates, according to the November 2022 commentary from the Fannie Mae (OTCQB: FNMA) Economic and Strategic Research (ESR) Group. The ESR Group also expects declines in residential fixed and business investment, as well as slowing personal consumption growth, to contribute to negative growth in Q4 2022, and it continues to expect the economy to tip into a modest recession in the first quarter of 2023. Full-year 2022 GDP growth is now expected to be 0.0 percent, an upgrade of one-tenth from the previous forecast, while forecasted 2023 GDP was downgraded by one-tenth to a 0.6 percent contraction. Additionally, the ESR Group's inaugural forecast for 2024 shows economic growth rebounding to 2.0 percent on a Q4/Q4 basis, reflecting the beginning of an expected economic recovery. Finally, although inflation showed signs of cooling in October, the possibility of a strong labor market contributing to more persistent wage pressures in the future suggests to the ESR Group that the Federal Open Market Committee (FOMC) will once again raise the federal funds rate at its next meeting, and it forecasts the federal funds rate topping out at approximately 5.0 percent in early 2023.

Key Points:

Full-year 2022 GDP growth is now expected to be 0.0 percent, an upgrade of one-tenth from the previous forecast, while forecasted 2023 GDP was downgraded by one-tenth to a 0.6 percent contraction.
Additionally, the ESR Group's inaugural forecast for 2024 shows economic growth rebounding to 2.0 percent on a Q4/Q4 basis, reflecting the beginning of an expected economic recovery.
The ESR Group made only modest updates to its forecast of total single-family home sales in 2022 and 2023, which are projected to be 5.67 million and 4.42 million, respectively.
We enable the 30-year fixed-rate mortgage and drive responsible innovation to make homebuying and renting easier, fairer, and more accessible.

Freddie Mac Multifamily White Paper Identifies Areas that Support Economic Opportunity

Retrieved on:

Tuesday, November 1, 2022

Congress, Federal Housing Finance Agency, Income, GLOBE, Research, Industry, Bibliography of Fannie Mae and Freddie Mac, Chicken as biological research model, Housing, Investment, Drachenbau Josef Guggenmos, Freddie Mac, Management, Real estate

MCLEAN, Va., Nov. 01, 2022 (GLOBE NEWSWIRE) -- A new white paper from Freddie Mac Multifamily introduces a different approach for identifying areas that could offer residents economic opportunity.

Key Points:

MCLEAN, Va., Nov. 01, 2022 (GLOBE NEWSWIRE) -- A new white paper from Freddie Mac Multifamily introduces a different approach for identifying areas that could offer residents economic opportunity.
The goal of our research is to build a deeper understanding of what makes an area high opportunity, said Steve Guggenmos, vice president of Research & Modeling for Freddie Mac Multifamily.
Freddie Macs approach is a hybrid of two key measures: Opportunity Atlas , established by Raj Chetty and his team at Opportunity Insights , and a new proprietary Location Score, created by Freddie Mac Multifamily Research & Modeling team.
Freddie Mac found that its new measure overlapped significantly with the established definition of High Opportunity Areas, as set by the Federal Housing Finance Agency.