Sandra Thompson’s elevation to acting director from her role as head of housing mission and goals presaged FHFA’s new focus on fair lending practices enforcement.
The changes: FHA has established a streamlined loan mod that servicers must offer to certain borrowers, GSE servicers have to follow the CFPB’s new standards a month earlier than intended, and Ginnie Mae and NCUA are allowing for a broader range of loan mods.
For the first time since QM standards took effect in early 2014, lenders can no longer rely on the government-sponsored enterprises to obtain QM status for a loan.
Fannie imposes a draconian 3% cap on NOO loans for some lenders to ensure it meets the 7% cap required under the PSPA. Freddie, already under the cap, puts its threshold at 6%.
Fannie and Freddie have provided lenders with some flexibilities on construction-related loans. Also, they will pause acquisitions of refinances of mortgages with high loan-to-value ratios.
Applications are down but not dramatically so. Also, UWM’s CEO sees opportunities in the M&A binge, namely the ability to recruit some top-flight talent who might be left without a home.
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