Higher delinquencies should lead to more Fannie/Freddie loan buybacks, but we're not there yet, thanks, in part, to forbearance...

Fannie and Freddie warn that g-fees could spike...

In the case of the GSEs, multifamily loans are not covered by the extension...

Assuming an average prevailing interest rate of 2.99%, Fannie Mae estimates that 64% of all mortgages are at least 50 basis points "in the money."

But there’s something else to think about here. Let’s say Democrat Joe Biden (DE) wins the White House in November. After being sworn into office, will he act swiftly to dismantle this very controversial loan-level private adjustment?...

Other sectors of the jumbo market saw more measured gains...

FHFA said it originally approved the purchase of forborne loans to improve liquidity in the market. On Wednesday, agency Director Mark Calabria reiterated that assertion: “Extending these COVID-19 flexibilities helps keep the mortgage market moving and borrowers safe during the pandemic.”

However, FHFA made it clear the agency is not cancelling the new fee, which it says is intended to help Fannie and Freddie defray the costs associated with COVID-19 relief. The agency says those actions have conservatively cost the enterprises $6 billion...

NAR also recommends eliminating the steep 500 to 700-basis-points fee on GSE forbearance loans...

The general consensus is that this new loan-level price adjustment will not be killed outright but very well could be moved back by at least 60 days from its current Sept. 1 implementation date. This would allow lenders facing rate-lock hits to avoid financial damage…