Americans could soon face another increase in borrowing costs as the Federal Reserve prepares for a highly anticipated interest rate decision. Financial markets widely expect policymakers to raise the federal funds rate by a quarter percentage point, a move intended to combat renewed inflation pressures but one that could also make credit cards, auto loans, and certain home loans more expensive.
Americans waiting for the housing market to become more affordable may have to remain patient. Mortgage rates are now expected to stay elevated through much of 2027, while home prices could continue rising modestly, creating another difficult year for prospective buyers hoping that lower borrowing costs will make homeownership easier to achieve.
The mortgage industry is approaching one of its most significant appraisal changes in more than a decade as Fannie Mae and Freddie Mac move toward full implementation of the Uniform Appraisal Dataset 3.6 and redesigned Uniform Residential Appraisal Report. The transition will change far more than the appearance of appraisal reports. For lenders, underwriters, appraisal management companies, and technology providers, UAD 3.6 introduces a more structured, data-driven approach to ordering, reviewing, and submitting residential appraisals.
Buying a condominium may soon become more challenging for many homebuyers as new lending standards introduced by Fannie Mae and Freddie Mac increase the level of scrutiny applied to condominium projects. Mortgage professionals say the updated requirements are intended to strengthen the financial and structural integrity of condo communities, but they also warn the changes could lead to longer approval timelines, additional documentation requests, and more loan denials for buyers seeking conventional financing.
The U.S. housing market is showing additional signs of slowing as homebuilders scale back new single-family construction in response to elevated mortgage rates, higher construction costs, and softer buyer demand. Although the nation continues to face a long-term housing shortage, many builders are becoming increasingly cautious about launching new projects until affordability improves and consumer confidence strengthens.
Section 103 of the recently signed Economic Growth, Regulatory Relief, and Consumer Protection Act (S. 2155), is less than 650 words. At most, the provision will only impact about 15 percent of all mortgage originations. Section 103 hasn’t received the amount of praise and criticism as other parts of the law. Yet it’s been held up by several detractors as just one example of how the law may hurt homebuyers and potentially cause a repeat of the housing collapse that contributed to the 2008 financial crisis.
Opinion-Editorial (Op-Ed) Disclaimer For NAMU® Library Articles: The views and opinions expressed in the NAMU® Library articles are those of the authors and do not necessarily reflect any official NAMU® policy or position. Examples of analysis performed within this article are only examples. They should not be utilized in real-world application as they are based only on very limited and dated open source information. Assumptions made within the analysis are not reflective of the position of NAMU®. Nothing contained in this articles should be considered legal advice.
The U.S. House decided to compromise on its plan to reform the Dodd-Frank Act, voting last week to approve the Senate’s less controversial version. President Trump subsequently signed S. 2155, the Economic Growth, Economic Growth, Regulatory Relief, and Consumer Protection Act, into law.
Opinion-Editorial (Op-Ed) Disclaimer For NAMU® Library Articles: The views and opinions expressed in the NAMU® Library articles are those of the authors and do not necessarily reflect any official NAMU® policy or position. Examples of analysis performed within this article are only examples. They should not be utilized in real-world application as they are based only on very limited and dated open source information. Assumptions made within the analysis are not reflective of the position of NAMU®. Nothing contained in this articles should be considered legal advice.
The ongoing debate about the use of alternative valuation products (AVPs) gathered steam last week with a report that Fannie Mae will be testing hybrid appraisals. The report, which Fannie Mae officials have not commented on, claimed the GSE will be asking appraisers during this pilot to use a combination of local market data and a home inspection report to determine a property’s value during mortgage underwriting and processing.
Opinion-Editorial (Op-Ed) Disclaimer For NAMU® Library Articles: The views and opinions expressed in the NAMU® Library articles are those of the authors and do not necessarily reflect any official NAMU® policy or position. Examples of analysis performed within this article are only examples. They should not be utilized in real-world application as they are based only on very limited and dated open source information. Assumptions made within the analysis are not reflective of the position of NAMU®. Nothing contained in this articles should be considered legal advice.
Opinions vary as to whether Fannie Mae and Freddie Mac should require specific credit scoring models on mortgage applications or whether lenders should have more freedom on which scoring models they want to use.
Opinion-Editorial (Op-Ed) Disclaimer For NAMU® Library Articles: The views and opinions expressed in the NAMU® Library articles are those of the authors and do not necessarily reflect any official NAMU® policy or position. Examples of analysis performed within this article are only examples. They should not be utilized in real-world application as they are based only on very limited and dated open source information. Assumptions made within the analysis are not reflective of the position of NAMU®. Nothing contained in this articles should be considered legal advice.
Mortgage processors and underwriters, as well as the rest of the mortgage lending industry, seem to be caught in a Catch-22 regarding how easy or difficult it is to get a home loan.
Opinion-Editorial (Op-Ed) Disclaimer For NAMU® Library Articles: The views and opinions expressed in the NAMU® Library articles are those of the authors and do not necessarily reflect any official NAMU® policy or position. Examples of analysis performed within this article are only examples. They should not be utilized in real-world application as they are based only on very limited and dated open source information. Assumptions made within the analysis are not reflective of the position of NAMU®. Nothing contained in this articles should be considered legal advice.
The Home Affordable Refinance Program (HARP) has been a success for both homeowners and for Freddie Mac, according to a recent report by Moody’s Investors Service.
Opinion-Editorial (Op-Ed) Disclaimer For NAMU® Library Articles: The views and opinions expressed in the NAMU® Library articles are those of the authors and do not necessarily reflect any official NAMU® policy or position. Examples of analysis performed within this article are only examples. They should not be utilized in real-world application as they are based only on very limited and dated open source information. Assumptions made within the analysis are not reflective of the position of NAMU®. Nothing contained in this articles should be considered legal advice.
Efforts to reform the Dodd-Frank Act took a major step forward last week, as the Senate passed S. 2155, the Economic Growth, Economic Growth, Regulatory Relief, and Consumer Protection Act.
Opinion-Editorial (Op-Ed) Disclaimer For NAMU® Library Articles: The views and opinions expressed in the NAMU® Library articles are those of the authors and do not necessarily reflect any official NAMU® policy or position. Examples of analysis performed within this article are only examples. They should not be utilized in real-world application as they are based only on very limited and dated open source information. Assumptions made within the analysis are not reflective of the position of NAMU®. Nothing contained in this articles should be considered legal advice.
How quickly will mortgage rates increase?How high will they go? What impact will increasing rates have on mortgage underwriters and processors? These are some of the questions Freddie Mac attempted to answer in its latest Insight report.
Opinion-Editorial (Op-Ed) Disclaimer For NAMU® Library Articles: The views and opinions expressed in the NAMU® Library articles are those of the authors and do not necessarily reflect any official NAMU® policy or position. Examples of analysis performed within this article are only examples. They should not be utilized in real-world application as they are based only on very limited and dated open source information. Assumptions made within the analysis are not reflective of the position of NAMU®. Nothing contained in this articles should be considered legal advice.
Housing is a critical staple of the economy. Home values, home sales and home construction are strong indicators of economic growth or stagnation. Home ownership often represents stability, community, and household wealth. For decades, tax laws and economic policies have been designed and enacted to encourage home ownership and maintain a strong housing market, especially when other areas of the economy are on the decline.
Opinion-Editorial (Op-Ed) Disclaimer For NAMU® Library Articles: The views and opinions expressed in the NAMU® Library articles are those of the authors and do not necessarily reflect any official NAMU® policy or position. Examples of analysis performed within this article are only examples. They should not be utilized in real-world application as they are based only on very limited and dated open source information. Assumptions made within the analysis are not reflective of the position of NAMU®. Nothing contained in this articles should be considered legal advice.
Freddie Mac and Fannie Mae intend to increase loan purchases from rural areas over the next three years as a key part of their Duty to Serve plans.
Opinion-Editorial (Op-Ed) Disclaimer For NAMU® Library Articles: The views and opinions expressed in the NAMU® Library articles are those of the authors and do not necessarily reflect any official NAMU® policy or position. Examples of analysis performed within this article are only examples. They should not be utilized in real-world application as they are based only on very limited and dated open source information. Assumptions made within the analysis are not reflective of the position of NAMU®. Nothing contained in this articles should be considered legal advice.
Written By: Stacey Sprain
As an FHA originator, processor or underwriter, it’s likely that in the ongoing foreclosure market you’ll run across a HUD REO loan at some point. The purpose of this multi-part article is to provide you with some useful information to help in your endeavors.