Later this month, Fannie Mae will begin to use trended credit data when completing credit risk assessments on mortgages submitted to the government-sponsored enterprise. Fannie claims the data “allow a smarter, more thorough analysis” of a borrower’s credit history, though the mortgage approval rate by the GSE isn’t expected to change much. In Selling Guide Announcement SEL-2016-04 published last week, Fannie detailed plans for trended credit data in the pending ...
Watt has given no indication that he wants to wade into this mess and has repeatedly stressed that it’s up to Congress to figure out what to do with Fannie and Freddie.
Government-sponsored enterprise Fannie Mae recently issued some additional guidance to its mortgage lender partners about self-reporting deficiencies in complying with the Consumer Financial Protection Bureau’s integrated disclosure rule known as TRID. In a new selling-guide announcement, Fannie said, “Lenders are not obligated to self-report any matters related to possible TRID non-compliance, regardless of the number of loans involved, except in two limited circumstances where a repurchase demand is an authorized remedy.” The first circumstance is...
Home prices in many areas have fully recovered from the declines seen during the financial crisis, according to a variety of home price indices. While prices above levels seen before the financial crisis could cause alarms about another housing bubble, Sean Becketti, chief economist at Freddie Mac, is seeking to ease concerns. Last week, Freddie economists published an in-depth analysis of home price trends and median household income. They said the house price-to-income ratio appears to be the clearest indicator of the long-run sustainability of house prices. And even the PTI ratios that are relatively high in specific areas don’t necessarily indicate that there’s another housing bubble. “Based on this approach, we’re...
A growing number of mortgage-industry groups, housing interests and Democrats on Capitol Hill are urging the Federal Housing Finance Agency to allow Fannie Mae and Freddie Mac to begin to restore their capital bases, while others urge the FHFA to leave the matter to Congress. The Mortgage Bankers Association joined with four other groups this week in urging the FHFA to maintain the current state of conservatorship for the two government-sponsored enterprises and let Congress tackle broad mortgage-finance reform. “Absent reform, we run the risk of continuing to kick the can down the road without ensuring ongoing access to mortgage credit for millions of future homeowners,” the groups said. Joining the MBA were...
A bill making its way through the New York state legislature has prompted concerns among servicers and the Mortgage Bankers Association, who warn that the bill’s requirements regarding abandoned properties would increase costs and legal risks for servicers. A.6932-A, the Abandoned Property Neighborhood Relief Act, was recently approved by New York’s Assembly on a 116-22 vote. The bill would require servicers to periodically inspect properties tied to delinquent mortgages, report vacant properties to a state registry and provide authorities with tools to prompt servicers to maintain abandoned properties, among other provisions. “There is...
Joe Garrett of Garrett, McAuley & Co. wonders whether the day is coming when the CFPB will take up residence at some of the nation’s largest nonbank lenders.
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