Trade groups run a victory lap over the Biden administration decision to end Trump-era restrictions on the GSEs.

Ambitious goals in the proposed rule, especially on the multifamily side, may prove difficult for the GSEs to reach.

Lenders argue that Thompson should focus on reversing unpopular policies initiated when Mark Calabria was FHFA director. They point to unvetted credit requirements and the product caps included in the PSPAs.

With Fannie already over the PSPA cap on non-owner-occupied loan volume, lenders may have to dramatically reduce their delivery of second-home and investor-property mortgages.

Still, Rep. Maxine Waters (D-CA), chair of the House Financial Services Committee, urged the Federal Housing Finance Agency to kill the LLPA outright.

Trade groups point out the irony of raising mortgage rates at a time when the Federal Reserve is spending more than $40 billion a month on agency securities in an attempt to lower the cost of buying or refinancing a loan.

Fannie Mae and Freddie Mac can purchase early forbearance loans until Aug. 31, but they still have to impose steep loan-level price adjustments to limit their risk of losses.

Independent mortgage bankers heaved a sigh of relief after the Federal Housing Finance Agency said it will re-propose the minimum financial eligibility requirements for single-family seller/servicers.

Fannie Mae and Freddie Mac will purchase single-family mortgages that are in forbearance. But there’s a catch: steep LLPAs.