From the beginning of 2014 through the end of 1Q15, roughly 16 percent of the loans securitized by Fannie and Freddie had DTI ratios exceeding 43 percent...
The Consumer Financial Protection Bureau boosted Fannie Mae and Freddie Mac business by some $132.9 billion when it gave the two government-sponsored enterprises a free pass on the debt-to-income ratio requirements of the qualified-mortgage rule. For the non-agency world, a qualified mortgage has to have a DTI ratio of 43 percent or less. While the government-insured market has its own QM rules that effectively ignore DTI, a loan eligible for sale to the GSEs is considered a qualified mortgage if it meets all the QM criteria – such as no interest-only payments – other than the DTI cap. From the beginning of 2014 through the end of the first quarter of this year, about 16.3 percent of the loans securitized by Fannie and Freddie had...[Includes two data tables]
Sometimes lost in the hoopla over the rising nonbank share of mortgage servicing is that banks have fallen in and out of love with the servicing market for decades.
A relatively small – even microscopic – percentage of loans securitized by Fannie Mae and Freddie Mac in the past three years have been subject to a repurchase demand, according to a new Inside Mortgage Trends analysis.
Fannie Mae and Freddie Mac have made progress in improving their corporate governance structure and managing credit risk, but they still face significant headwinds, according to the FHFA’s annual report to Congress.
Fannie Mae is looking to reduce its footprint in the Dallas region as the number of mortgage delinquencies continues to decline. The GSE’s southwestern regional office at the International Plaza II includes more than 400,000 square feet of office space spread out among three buildings.
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