Fannie Mae adjusted its automated underwriting services last summer to make more loans with higher debt-to-income ratios eligible for approval without lenders needing to provide compensating factors.
Housing and Urban Development Secretary Ben Carson told Congress it would cost approximately $500 million upfront to convert FHA’s archaic information technology systems to a modern technology platform.
Former Fannie Mae executive and critic of the government-sponsored enterprises’ credit-risk transfer programs, Tim Howard, said on his blog this week that CRTs only help “sustain what has become a very profitable program for Wall Street firms and capital market investors.”
UBS agreed to a $230.0 million settlement on Wednesday with the New York attorney general to resolve issues with pre-crisis non-agency mortgage-backed securities.