Projected Bank Losses From GSE Buybacks Sharply Lowered

Keefe, Bruyette & Woods has sharply lowered its estimate of how much banks may lose as a result of buying back troubled mortgages from Fannie Mae and Freddie Mac, reports Housing Wire.

Keefe, Bruyette & Woods has sharply lowered its estimate of how much banks may lose as a result of buying back troubled mortgages from Fannie Mae and Freddie Mac. The investment bank now estimates losses at $33 billion, down from $57 billion, a decrease of 41%, after the government-sponsored enterprises in separate deals accepted a tiny percentage of the unpaid principal balances.

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