Fannie Mae and Freddie Mac have recently increased the amount of information they share about condominium developments—particularly those classified as ineligible for financing. While the move has been praised as a step in the right direction, many lenders say the enhancements still leave major gaps in transparency and usability.
Mortgage rates dipped to their lowest level since late April, driven by a rally in mortgage-backed securities (MBS) and a softer-than-expected tone from the Federal Reserve. Bond markets responded positively to Fed Chair Jerome Powell’s latest comments, which hinted at growing openness to rate cuts amid signs of labor market cooling.
As affordability challenges mount and the average U.S. down payment surpasses \$30,000, down payment assistance (DPA) programs are stepping into a critical role—particularly as federal housing support faces potential rollbacks. For first-time buyers and low-to-moderate income households, these programs are emerging as a vital tool in bridging the homeownership gap.
Momentum is building in Washington to privatize Fannie Mae and Freddie Mac, the two mortgage giants that support the bulk of America’s housing finance system. For a select group of hedge funds that scooped up their shares years ago, the political shift could deliver staggering returns. But housing advocates warn the move may come at the expense of affordability and long-term market stability.
Senate Republicans have introduced legislation that would eliminate the Consumer Financial Protection Bureau’s (CFPB) primary funding source, a move that could significantly reshape the agency’s future. The proposal seeks to end the CFPB’s access to funding from the Federal Reserve’s operating budget—cutting it from 12% to zero—and instead subject the bureau to the traditional congressional appropriations process.
The Federal Housing Finance Agency (FHFA) has released a 2021 Scorecard to measure the performance of the government sponsored enterprises based on the agency’s 2019 Strategic Plan. According to the overview of the scorecard document, “The purpose of the 2021 Scorecard is to ensure that Fannie Mae and Freddie Mac and Common Securitization Solutions, LLC focus on their core mission responsibilities, operate in a manner appropriate for entities in conservatorships with limited capital buffers, and undertake those activities necessary to support an exit from conservatorship.”
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.
A provider of cloud-based software for mortgage lenders reported that total mortgage loan volume funded more than doubled between the fourth quarter of 2019 and the same period in 2020. The data on mortgage industry incentive compensation and loan originator commissions was provided by LBA Ware, which provides incentive compensation management and business intelligence software for the mortgage industry.
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.
Less than a week since assuming the presidency, the new Biden administration has made an impact on the housing and mortgage industries. Last week, the Federal Housing Administration (FHA) announced that individuals classified under the “Deferred Action for Childhood Arrivals” program (DACA) can now apply for FHA mortgages.
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.
For all the negative events of 2020, mortgage underwriters and processors had a fairly busy year. Now it’s time to look ahead to 2021. Here are just a few of the many issues the industry will deal with this year.
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 Federal Housing Finance Agency (FHFA) took another step toward ending the conservatorships of Fannie Mae and Freddie Mac with a proposed rule released last week. The proposed rule would require the two GSEs to develop credible resolution plans, also known as living wills, to “facilitate a rapid and orderly resolution should FHFA have to be appointed their receiver under the Housing and Economic Recovery Act of 2008.”
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.
Optimism among mortgage lenders and homeowners is waning, according to a pair of surveys released last week by Fannie Mae. Fannie Mae's Home Purchase Sentiment Index (HPSI) fell in November by 1.7 points to 80 and is down 11.5 points compared to the same time last year. The HPSI had increased the previous three months.
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 Federal Housing Finance Agency (FHFA) raised the maximum conforming loan limit (CLL) to $548,250 for 2021. That’s a sizable increase from the $510,400 limit in 2020 for loans that can be acquired by Fannie Mae and Freddie Mac.
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 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.
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.