The regulator of the GSEs wants to know if there are ways it can help improve protections for the tenants of apartment buildings financed by Fannie and Freddie.
By the end of 2025, FHFA expects Fannie and Freddie to implement the use of FICO 10T and Vantage 4.0 into the mortgage process. Industry participants can expect a lot of hand-holding along the way.
Based on the success of payment deferrals during the COVID-19 emergency and feedback from industry, FHFA has made the option a key part of loss mitigation for the GSEs.
In order to have a return on capital sufficient to attract private investors, the GSEs would have to charge g-fees of about 76 basis points, according to former Freddie CEO Don Layton.
Lenders had argued that any debt-to-income ratio calculated early in the mortgage process would be subject to change and possible redisclosure requirements.