Both GSEs likely will be “winners” when it comes to hedging their derivative positions simply because interest rates were higher at March 31 compared to yearend.
After booking large one-time charges from marking down the carrying value of their deferred tax assets in the fourth quarter, Fannie Mae and Freddie Mac likely will post strong earnings for the first quarter of 2018, according to an analysis by Inside MBS & ABS.
The Consumer Federation of America agreed that the FICO score used by Fannie and Freddie is outdated and amounts to a monopoly on scoring. It supports the lender-choice option, but with constraints. The CFA recommended that lenders be required to pick a provider for a minimum period and said the models used by the two government-sponsored enterprises should align with one another.
Back in July 2017, Fannie revised its automated underwriting system to accept loans with DTI ratios over 45 percent without lenders having to show other compensating factors…