Using a single score or bi-merge increases the uncertainty in assessing borrower risk, with direct implications for loan pricing and underwriting decisions, according to a study by Andrew Davidson & Co.
Private MIs and the two major government programs provided primary coverage on $74.80 billion of refinance loans, more than double the volume in the third quarter.
The portfolios include both MBS and mortgages, with MBS holdings at Fannie Mae and Freddie Mac up nearly 60% on a quarterly basis in the fourth quarter of 2025.
David Spector, CEO of Pennymac Financial Services, said the firm’s correspondent aggregation platform is facing increasing competition from the GSEs’ cash window.
Rep. French Hill, R-AR, the chair of the House Financial Services Committee, was critical of initiatives by Bill Pulte, director of the Federal Housing Finance Agency.