TY - JOUR T1 - Reps and Warrants: <em>Lessons from the GSEs Experience</em> JF - The Journal of Fixed Income SP - 29 LP - 41 DO - 10.3905/jfi.2014.24.1.029 VL - 24 IS - 1 AU - Laurie S. Goodman AU - Jun Zhu Y1 - 2014/06/30 UR - https://pm-research.com/content/24/1/29.abstract N2 - Obtaining a loan guaranteed by Fannie Mae and Freddie Mac is more difficult today than it was in 2001. While many factors have caused this change, the system of representations and warranties (reps and warrants), under which lenders can be forced to repurchase loans long after they are sold to the GSEs, is a hidden contributor. Recent efforts by Fannie and Freddie and their regulator to fix the problem should help, but there is room to give lenders greater assurance without harming Fannie and Freddie. And that assurance should translate into greater lender willingness to increase lending by expanding the “credit box.”TOPICS: MBS and residential mortgage loans, financial crises and financial market history ER -