Both VantageScore and FICO have commissioned research to support their claims of superiority. But the truth probably won’t be known until VantageScore 4.0 and FICO 10T compete head-to-head.
Fannie and Freddie separately updated their selling guides, with changes involving remote online notarization and qualification in instances where the mortgage applicant is anticipating a new job or a raise. There are also some developments involving the Uniform Appraisal Dataset.
Fannie Mae is offering a new custodial bank account management application that impacts submissions of various forms to the GSE. Freddie Mac has adjusted the definitions of “change of control” and “senior management” at mortgage companies.
Until Fannie and Freddie are more transparent about the loan-level pricing adjustment grids for the new credit score, lenders and investors will remain cautious about its implementation.
If FHFA reduces the GSEs’ capital requirements, that would be a key signal that efforts are moving forward to end the conservatorship of Fannie Mae and Freddie Mac.
FHFA argued that the award was an unjustified windfall for GSE shareholders, many of whom knew about the net worth sweep when they purchased the stock.
Industry watchers believe GSE reform is probably off the table until after the mid-term elections at least, as the administration’s focus has shifted to other priorities.
RSS