A 50% cap on debt-to-income ratio within Fannie Mae’s Desktop Underwriter acts as an extra-regulatory limit on credit availability, according to researchers at the Federal Reserve Bank of St. Louis.
Lenders responsible for the majority of conventional mortgage originations are currently using VantageScore in some fashion, but it’s still not clear how they deal with differences between VS4 and classic FICO.
A GSE shareholder advocate says selling rights to existing shareholders could resolve conflicting objectives that have vexed GSE reform during the Trump administration.
Despite saying he will nominate former SEC Chair Jay Clayton as director of national intelligence, President Trump appears to be sticking with FHFA Director Bill Pulte as acting DNI.
Four of the 11 regional Federal Home Loan Banks saw double-digit declines in net income in the first quarter, even though total assets grew for the period. (Includes three data tables.)
Some economists suggest Fannie and Freddie should accept mortgages that include a modest prepayment penalty as a way to keep residential mortgage rates lower. But that would be a political challenge.
Milliman researchers calculate that the capital benefit Fannie Mae and Freddie Mac receive for their CRT activity reduces their capital requirement by about 20%.
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.
In a brief appearance on a show hosted by Steve Bannon, FHFA Director Bill Pulte suggested that part of the reason he was confirmed for the position was to address home prices.
RSS