The Federal Housing Finance Agency (FHFA) has sparked debate in the mortgage industry by directing Fannie Mae and Freddie Mac to explore whether cryptocurrency assets should be considered in loan underwriting. The potential move signals a significant shift in how digital assets might be evaluated in determining mortgage eligibility.
Shares of Fair Isaac Corp. (FICO), the company behind the widely used FICO credit score, fell sharply after a major shift in the credit scoring landscape. The drop came after Fannie Mae and Freddie Mac announced they would begin accepting the competing VantageScore 4.0 credit model, ending FICO's long-standing exclusivity in government-backed mortgage underwriting.
Mortgage rates have edged higher for the third consecutive day, with the average top-tier 30-year fixed rate now at approximately 6.81%, up from 6.67% at the end of June. While this uptick marks a short-term reversal, rates remain lower than the peaks seen earlier in the summer.
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.
A pair of initiatives were announced last week to make getting a mortgage a little easier for some potential homebuyers, as the short-term industry outlook continues to indicate it’s only going to be more challenging to buy a home. The U.S. Department of Housing and Urban Development, through the Federal Housing Administration (FHA), announced a new policy allowing lenders to count rental income from Accessory Dwelling Units (ADUs) when underwriting a mortgage. The policy took effect on the day of the announcement.
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 and Freddie Mac released updates to their Selling Guides last week. Both entities addressed changes in rental income policies. Fannie Mae indicated in its bulletin that its Selling Guide update provides additional details for documenting rental income used for qualifying and reconciles differences in the way income earned from subject and non-subject properties is determined.
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 issued legal guidance to lenders regarding the use of artificial intelligence (AI). The guidance clarifies that lenders, including mortgage lenders, must provide specific reasons for taking adverse actions against potential borrowers and not rely solely on the results of AI.
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) said it expects a delay in the implementation of previously announced credit reporting requirements. The agency also announced that it would seek more public engagement on the transition to updated credit score models and credit report requirements for loans 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.
Fannie Mae economists say recent data points to a stronger economy than previously expected, but a downturn is still imminent. Regardless of whether the economy enters a recession, the Fannie said in its August commentary that home sales are expected to remain subdued.
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 record percentage of survey respondents believe it’s a bad time to buy a home at a time when home prices have reached all-time highs in 30 of the 50 largest markets. In the latest Fannie Mae Home Purchase Sentiment Index® (HPSI), 82 percent of consumers reported that it’s a bad time to buy a home, a new survey high and up from 78 percent the previous month.
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 Community Home Lenders of America (CHLA) wants to the Federal Housing Finance Agency (FHFA) to alter its previously announced implementation schedule for changes in the credit score reporting process. In a letter sent last week to FHFA, CHLA urged the regulatory agency to begin with process using only VantageScore, while deferring use of FICO 10T to a later phase.
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.
Members of Congress and mortgage industry leaders have spent the past year attempting to eliminate trigger leads. Trigger leads occur when credit bureaus sell a potential borrower’s information after a credit application “triggers” a credit report pull. The credit bureaus can sell the lead to data brokers and other lenders without the consumer’s knowledge or approval.
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 underwriters and processors who are interested can keep themselves busy for a while studying a pair of recently released sets of data. The Federal Financial Institutions Examination Council (FFIEC) released data on 2022 mortgage lending transactions reported under the Home Mortgage Disclosure Act (HMDA). The data was compiled from records by 4,460 U.S. financial institutions, including banks, savings associations, credit unions, and mortgage companies.
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 housing shortage for potential middle income buyers and decreasing optimism from all potential buyers is contributing to fewer purchase originations for mortgage processors and underwriters. But there’s potential good news in that the next generation of potential homeowners remains interested in ownership.
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.