A recent policy shift affecting government-sponsored mortgage giants Fannie Mae and Freddie Mac is drawing attention across the housing and lending industries, with officials arguing the change could lower costs and improve access to homeownership for a broad segment of Americans. The move, introduced during the Trump administration, focuses on adjusting key pricing structures within the mortgage market—an area that directly influences how much borrowers ultimately pay for their loans.
A proposal to eliminate federal taxes on tips is gaining attention as lawmakers explore ways to provide targeted financial relief to service industry workers, but the measure faces significant uncertainty as it moves through the legislative process. While the idea has attracted political interest and public support, questions remain about its feasibility, cost, and broader economic impact.
Fannie Mae’s exploration of crypto-backed mortgage concepts is drawing attention across both housing and financial markets, highlighting how emerging asset classes could intersect with traditional mortgage lending. While still in early-stage discussion, the idea reflects a broader push to modernize underwriting approaches and expand the range of assets that may be considered in qualifying borrowers.
Fannie Mae has returned to the spotlight among investors as questions surrounding its future structure, regulatory status, and potential reform continue to shape market sentiment. While the government-sponsored enterprise remains a central pillar of the U.S. housing finance system, uncertainty about its long-term trajectory is influencing how investors evaluate its stock and broader role in mortgage markets.
Mortgage rates moved sharply higher after geopolitical tensions intensified following military strikes involving Iran, reversing the modest decline borrowers had seen only days earlier. The sudden change illustrates how quickly global events can ripple through financial markets and ultimately influence borrowing costs for American homebuyers.
The Federal Housing Finance Agency (FHFA) has validated the continued use of Classic FICO by Fannie Mae and Freddie Mac, but said it will take another year to validate and approve alternative credit scoring models. “The validation and approval of Classic FICO by the enterprises allows them to continue supporting the mortgage market while assessing more modern credit score models that were submitted in response to the 2020 Joint Enterprise Credit Score Solicitation," the FHFA said in a statement.
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 two government sponsored enterprises reported much better third quarter financial results than they had in the second quarter of this year. Fannie Mae and Freddie Mac released their quarterly financial results last week.
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 refinance wave has to slow down at some point, and Freddie Mac is forecasting that it will happen in 2021. According to Freddie’s latest Quarterly Forecast released last week, total mortgage origination volumes increased over the last several months as many homeowners took advantage of historically low mortgage rates.
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.
Even though it created sizable implementation costs for lenders, the TRID Rule has led to improved borrower understanding of mortgage transactions. That’s according to a more than 300-page report released last week by the Consumer Financial Protection Bureau (CFPB).
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 director of the Federal Housing Finance Agency (FHFA) was questioned last week by the House Financial Services Committee about the agency’s response to COVID-19. In particular, Director Mark Calabria had to defend a fee the agency announced to recoup some of the costs associated with the pandemic.
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 Consumer Financial Protection Bureau (CFPB) has proposed a new category of seasoned qualified mortgages (QMs). The bureau issued a notice of proposed rule making (NPRM) last week to request comments.
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.
Homeowners originated an increasing volume of mortgage loans in the second quarter of this year, but buyers are starting to cool to the market potential. The New York Federal Reserve’s second quarter report on Household Debt and Credit showed that mortgage balances shown on consumer credit reports stood at $9.78 trillion on June 30. This was a $63 billion increase from the first quarter.
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.
Fannie Mae economists believe the housing market has already hit its pandemic-related bottom. Fannie said in its latest housing and economic outlook last week that the latest data points to continued improvement.
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.
Last week, FICO launched its Resilience Index to help lenders predict how resilient a person’s credit may be in the event of an economic downturn. FICO said the new index identifies borrowers that have more resilient credit during “an unexpected economic disruption,” such as the current COVID-19 pandemic. FICO noted that credit access tightens during down economies as lenders mitigate credit risk.
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.
Fannie Mae said its long-term outlook for the housing market is “cautiously optimistic.” On the one hand, purchase applications have rebounded since April, when the COVID-19 pandemic all but halted real estate transactions. Purchase activity plummeted 30 percent at its lowest point.
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.