Based on the success of payment deferrals during the COVID-19 emergency and feedback from industry, FHFA has made the option a key part of loss mitigation for the GSEs.

The nonbank share of GSE servicing held steady in 2022 even as sales slipped a bit. (Includes data chart.)

Critics argue that, by targeting deep-pocket institutional buyers, the enterprises’ sale of non-performing and reperforming loans removes homes from the buyers’ market and makes it impossible for nonprofit organizations to participate meaningfully.

NCLC attorneys claim the bulk sale of seasoned loans allows buyers to circumvent the GSEs’ loss-mitigation programs. That adds up to more borrowers unable to stay in their home.

The nonbank share of GSE servicing peaked early in 2022. Later in the year, large banks regained some share. (Includes two data charts.)

Former MBA President David Stevens believes the idea that the GSEs should assess the MSR valuations of their seller/servicers may have come from Fannie and Freddie themselves.

The state of Florida is setting up a reinsurance fund to stabilize a property insurance system plagued with disaster-related insolvencies and years of underwriting losses.

Heavy buying and selling in the secondary servicing market played a significant role in the third quarter ranking of GSE servicers. Chase continued to climb closer to the top rung.

Freddie is working to move servicers to the new Resolve system while Fannie set new standards for use of mortgage assistance funds.

Beginning in March 2023, GSE servicers will have to retain fair lending data. FHFA set the requirement, citing lessons learned during the pandemic.