Changes in loan characteristics for new acquisitions and new capital requirements combined to reduce the “profitability gap” for GSE business in 2022.

Even though the mortgage market continued to struggle, Fannie Mae and Freddie Mac generated healthy profits in the first quarter of 2023 thanks to their business models.

Lenders argue that dramatic price hikes by FICO have inflated their credit score costs by as much as 500% since 2022.

The current loss-mitigation waterfall has dramatically reduced foreclosure liquidations, suggesting lenders could make more loans to riskier borrowers without increasing expected losses.

As Fannie Mae’s CEO approaches the first anniversary of her tenure, she talks about climate change, affordable housing and the homeownership gap.

Lenders say any information sharing should respect the confidentiality of nonbanks and their customers.

Critics argue the new second mortgage program is another attempt by Freddie Mac to expand its footprint. But GSE insiders say it’s already allowed under its charter.

The Mortgage Bankers Association and the Community Home Lenders of America are on opposite sides of the debate about allowing the GSEs to waive the requirement for lender’s title insurance.

The Federal Housing Finance Agency has long supervised the GSEs’ management of third-party risk from nonbank mortgage companies. But now for the first time it is examining nonbanks directly.

The Urban Institute, with funding from the National Fair Housing Alliance, has developed resources lenders can use to launch special purpose credit programs.