Higher provisions for losses in the second quarter contributed to a 14.6% sequential drop in net income for the mortgage giant.

Lower head counts at the mortgage giant reduced administrative expenses by $145 million in the second quarter, though profits were still down 9% sequentially.

Just one week after VantageScore 4.0 credit score was allowed for underwriting GSE-eligible loans, competitor FICO released data appearing to show that FICO 10 T has superior predictive capabilities.

If true, this could be an example of occupancy fraud, a method used to secure a lower interest rate or better terms on a mortgage.

It may take time for MBS investors to fully understand how use of the new credit score for underwriting loans sold to the GSEs impacts pricing and hedge strategies.

President Trump and FHFA Director Bill Pulte are going after high profile targets to address mortgage fraud at Fannie Mae and Freddie Mac.

There’s no consensus on how the Trump administration’s effort to end the conservatorship of the GSEs should address senior preferred shares in Fannie and Freddie.

FHFA said lenders can now use VantageScore 4.0 when underwriting GSE loans. It’s not clear, though, if the mortgage industry is ready to take advantage of the opportunity.

The MBA said increased competition in the credit score space could improve competition in the mortgage space “if implemented correctly.”

The FHFA director last week directed Fannie Mae and Freddie Mac to figure out how to use cryptocurrency in the mortgage underwriting process.