The Federal Housing Finance Agency published a final rule this week allowing the Federal Home Loan Banks to transfer mortgage servicing rights on Acquired Member Assets to any institution, including a nonmember and nonbank. The Dec. 19 final rule reorganizes much of the current regulation governing the FHLBanks’ AMA programs and makes it easier for the banks to take on new business activities. The change was made, in part to recognize the evolving market landscape where a good amount of servicing is being done by nonbanks. The provision noted that any such transfer cannot result in the AMA loan failing to meet any other AMA requirement, including the credit enhancement.
Fannie Mae’s Desktop Underwriter has been updated this month to include an employment and asset verification service under its Day 1 Certainty initiative announced in October. Day 1 was created to alleviate buyback fears on some loan components for lenders using its underwriting and appraisal tools. The GSE said that lenders would be relieved from most representations-and-warranty risk when it comes to verifying a borrower’s income, assets and employment. When a lender opts in to use the DU validation service, Fannie said that DU will use third-party vendor data to perform calculations and validate information entered by the lender.
FHLBank Topeka President to Retire. The Federal Home Loan Bank of Topeka announced on Dec. 20 that Andrew Jetter, president and CEO, will begin serving as senior advisor on Jan. 1, 2017, until his retirement date in the first quarter of 2017. Mark Yardley, executive vice president and chief risk officer, will serve as interim president and CEO until a new one is appointed. CBO Suggests Higher G-Fees, Lower Loan Limits. The Congressional Budget Office is looking for ways to reduce the budget impact of government-backed mortgage programs and recommends that Fannie Mae and Freddie Mac increase their guarantee fees and/or significantly lower their loan limits.
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