Loan Modification

The new chairman of the House Financial Services subcommittee on capital markets and GSEs noted that Fannie and Freddie own roughly $1.5 trillion in whole loans and mortgage-backed securities. "As we begin to eventually head into a more volatile interest rate environment, it will become increasingly difficult to hedge a book that size against those movements," Rep. Garrett told an American Securitization Forum conference in Orlando, Fla.

"I also believe there are significant unrealized gains in the portfolios that could be realized," he said.