Pete Mills, a senior vice president of residential policy and strategic industry engagement at the MBA, wrote that the proposal has theoretical benefits but they’re impossible to assess given the limited details FHFA included in the request for comments.
Debt service coverage ratio mortgages qualify borrowers based on rental income rather than the traditional debt-to-income ratio metric used by the GSEs.
Bob Broeksmit, president and CEO of the MBA, said that if the Supreme Court had invalidated the CFPB's rules, there would have been a severe impact on the housing market.
Six months after completing its year-long review of the Federal Home Loan Bank System, FHFA is asking housing industry stakeholders how to create a mission statement that restores the banks' focus on housing.