JMP said it sounds like “these actions” by the GSEs “primarily targeted nonbank wholesale channel lenders, of which UWM [United Wholesale Mortgage] and HMPT are among the largest.”

Fannie CEO Hugh Frater described the change to DU as “one important step in correcting the housing inequities of the past,” adding that it will create a more inclusive mortgage credit evaluation process.

CHOICEReno eXPress, on the other hand, is targeted toward borrowers who need to finance relatively minor renovations. In designated Duty to Serve high-needs areas, the total cost of the rehab can’t exceed 15% of the appraised home value. Otherwise, the limit is 10% of the home price.

The two GSEs securitized $98.14 billion of refi loans in July, the lowest monthly volume since March of last year, when the Federal Reserve sparked a massive refi market by pushing interest rates to record lows.

Some $1.12 billion of ECMs originated by Flagstar were included in non-agency MBS during 2Q21. The lender is slated for sale to NYCB.

Fannie’s net worth position increased to $37.5 billion, up 47.4% from a year ago.

Multiple lenders tell Inside Mortgage Finance that, in late March, the enterprises began rejecting loans that would have been easily approved in early March.

Nevertheless, rumors are circulating that the Biden administration is preparing to test the legal waters by having the FHA and VA extend their REO eviction moratoriums to the end of the year. These were also scheduled to end on Saturday. If that were to happen, most observers believe FHFA would follow suit.

It’s highly likely the adverse market refi fee boosted Fannie Mae’s revenues as well, but that GSE won’t release earnings until next Tuesday.