Just because a GSE uses a third-party vendor to assess the risk of seller/servicers as counter-parties that doesn’t mean the GSE – or their management – is off the hook if something goes awry.
Understanding the ebb and flow of mortgage debt is hampered by a lack of data on mortgage flows, making it more difficult for policymakers and regulators to deal with fluctuations in overall credit growth. A working paper published recently by the Federal Reserve attempts to make sense of the factors driving the volatility in the stock debt by analyzing changes in aggregate mortgage debt into mortgage inflows and outflows. It attributes these inflows and outflows to more micro-components such as investor activity, first-time homebuying and borrower credit score. “Quantifying these various flows into and out of the pool of mortgage debt allows for a precise assessment of the relative importance over time,” the paper noted. “Creating such data on an ...
The Mortgage Industry Standards Maintenance Organization recently released version 3.3.1 of its residential reference model for public comment. This version of the standard includes data points and structures related to a number of recent regulatory and reporting requirements and additions in the areas of mortgage insurance coverage and conditions, title, payoff and property valuation. “Version 3.3.1 of the MISMO Reference Model and Logical Data Dictionary are the direct result of MISMO contributors from across the industry collaborating to solve business problems and develop the standards needed to meet industry needs in today’s rapidly changing regulatory and compliance environment,” said Mike Fratantoni, president of MISMO and chief economist for the Mortgage Bankers Association. In addition to the LDD, XML schema and ...
Fannie, Freddie Conforming Loan Limits Mostly Unchanged for 2015. The Federal Housing Finance Agency this week said that conforming loan limits for Fannie Mae and Freddie Mac in 2015 would remain at current levels in most markets. For much of the country, the conforming loan limit for one-unit properties will remain at $417,000. The loan limits are established under the terms of the Housing and Economic Recovery Act of 2008 and are calculated each year.
Fannie Mae and Freddie Mac are testing parts of the new common securitization platform and are expected to have the system largely built in 2015. But the GSEs have a lot of work to do building interfaces for their systems to work with the new platform while the joint venture that’s running the CSP won’t be functional for several years, according to two recent Federal Housing Finance Agency reports.
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