According to independent mortgage bankers, aggregators are adding credit overlays and refusing to buy loans in response to post-closing forbearance risk.
An FHFA spokesperson said that, while Director Mark Calabria hasn’t issued a specific directive on providing credit, he has made it very clear that Fannie and Freddie must prioritize their own safety and soundness.
In a survey of its members last week, the Mortgage Bankers Association found that the percentage of loans in forbearance rose from just 0.25% on March 2 to 2.66% by April 1, nearly a tenfold increase.
Trade groups are wary that any capital rule issued after May could be over-turned if Democrats win the White House and control of Congress in the next election.
The industry’s mood at the Mortgage Bankers Association’s annual conference last week seemed optimistic. But global uncertainty with China and trade, and Brexit could cut the good times short.
The organization’s largest sources of revenue — by far — are its annual convention and the cash it takes in from membership dues: $30.4 million and $24.3 million, respectively.