Chart of the Week: GSE Repurchases

This week’s Chart of the Week presents repurchase trends between 2019 and the first quarter of 2026, utilizing data extracted by Recursion from Fannie Mae and Freddie Mac securitization data. The chart shows repurchase activity based on the status of the loans as of the end of each quarterly reporting period. The peaks in repurchase activity for both Freddie and Fannie tracked closely with the surge in originations in 2020 and 2021, with a slight lag as quality control audits needed time to catch up. Repurchase requests then tracked the decline in originations starting in 2022 as mortgage rates increased, although Freddie’s requests did not initially fall as much as those from Fannie.

The GSEs conduct detailed reviews on loans that they have acquired to ensure that the loans meet eligibility requirements. Repurchases can be on performing or non-performing loans, and reasons for repurchase can include borrower income changes, collateral-related loan defects, suspected fraud, and other charter violations such as non-QM, condotels, etc.

It is also worth noting how many of these requests are ultimately completed. Over the past eight quarters, the percent of requests that resulted in repurchase or replacement was roughly 33% for Freddie and 41% for Fannie. Therefore, while the data show that Freddie issues more repurchase requests than Fannie, a lower percentage of those requests result in a repurchase. MBA will continue to follow these trends closely given how much repurchase activity impacts lenders, given the level of costs and staff time required to address these requests.   

• Joel Kan (jkan@mba.org)