"Liquidity provides the grease that allows capital markets to operate freely," said Rodrigo Lopez, chairman-elect of the Mortgage Bankers Association. "We are currently experiencing a lack of liquidity, not a lack of cash."

Fanie Mae made changes to its HomeReady program and Freddie Mac adjusted its Home Possible program.

The new guidance includes a number of provisions, including a requirement for lenders to escrow PACE payments to protect the FHA from losing collateral in a tax sale.

Applications for refinances decreased slightly last week compared with the week prior, according to the Mortgage Bankers Association, as average interest rates on mortgages increased during the week.

Some 109 lenders contributed to the $344.89 million jumbo MBS issued by Redwood Trust during the quarter, according to Moody’s Investors Service.

Analysts at Morningstar Credit Ratings suggest that most non-agency MBS backed by new mortgages will be subject to full reviews due to uncertainty regarding the TILA-RESPA Integrated Disclosure rule.

Some 5.0 percent of MGIC’s new insurance written in the second quarter of 2016 was for mortgages with loan-to-value ratios above 95 percent.

To help address racial disparities in lending, the NCRC called for expansion of the Community Reinvestment Act, stronger enforcement of the CRA and strengthening of the government-sponsored enterprises’ affordable housing goals.

“Discrimination should have no place in the mortgage industry,” according to the Republican platform.

“[The GSEs’] corrupt business model lets shareholders and executives reap huge profits while the taxpayers cover all losses,” according to the Republican platform.