The FHFA IG is looking for an MSR evaluator while Fannie and Freddie are looking for guns and money

National Mortgage News has published a news this Monday saying the FHFA’s Office of Inspector General is looking to hire a firm to evaluate mortgage servicing rights. While the article does not name the two servicing brokerage firms mentioned in by Paulo Muolo, it is unclear why the Inspector General is seeking evaluation on MSRs.

However, people familiar with the matter said the Inspector General has taken under his loop Fannie’s purchase of $74 billion of MSRs from Bank of America, which is the largest purchase ever in the GSEs history. But there are no official statements regarding the issue.

Origination News draws our attention to one interesting fact: while the “some FHFA Inspector Generals are carrying guns” sound like a gossip which travelled through all media channels, it was affirmed by an article published by the Wall Street Journal, where it reads: “When Steve Linick first met senior managers at Fannie Mae and Freddie Mac early this year, he told them he would be no ordinary Washington regulator. His office has the power to make arrests, issue subpoenas and conduct searches, and some of his employees carry badges and guns.”

But the question is: what is the purpose of those guns? Do they really need it, or they are just trying to impose authority?