Almost all of the decline in combined GSE profits was due to a spike in loan-loss provisions. But while Fannie’s provisions continued to grow in the fourth quarter, Freddie’s may have peaked in the third quarter. (Includes data chart.)

The mortgage giant has introduced new valuation options as it moves away from the policy that “appraisal is a default requirement.”

Deciding whether the GSEs should use FICO or VantageScore or both turned out to be the easy part. The hard part is going to be the multiyear process of figuring out how to use the scores together.

In a sign of how much business declined at Fannie and Freddie last year, their contributions to the two affordable housing programs are off 50% from 2022.

It’s been 10 years since the Federal Housing Finance Agency has examined the mandatory competitive programs of the Federal Home Loan Banks’ affordable housing program.

A recently announced change in Fannie’s appraisal policy may expand financing options in the manufactured home market.

Uncertainty caused by regulations and the complexity of calculating income and debt make DTI a poor metric to use in pricing a loan without the risk of lenders having to eat a new fee.

The heads of quality control at Fannie Mae and Freddie Mac describe the causes and treatment of defects. The percentage of repurchases has remained stable at Fannie, but is elevated at Freddie.

NCLC attorneys claim the bulk sale of seasoned loans allows buyers to circumvent the GSEs’ loss-mitigation programs. That adds up to more borrowers unable to stay in their home.

Despite FHFA’s decision to require that lenders provide both a VantageScore 4.0 and a FICO 10T credit score, it may be years before the market can implement the new scores.