Industry stakeholders welcomed the idea of reducing the regulatory burden faced by the FHLBanks, but they also want insurance that the system will continue to serve their interests.
More than 100 lenders have sought approval to participate in the GSEs’ pilot program for VantageScore 4.0. MBS investors are also seeking measures to prevent gaming, increase data transparency and ensure the GSEs can accept applications with more than one score.
Proposed legislation revives congressional debate about ending the conservatorships. But mortgage industry stakeholders are skeptical about the bills chance of passage.
Proposed legislation would allow Fannie Mae and Freddie Mac to purchase and securitize residential construction loans, provided those projects meet certain affordability and safety and soundness requirements.
In a scenario that Fannie and Freddie exit conservatorship, Urban Institute analysts believe that the courts will allow the uniform MBS to persist, even though it requires coordination between the GSEs that could invite antitrust litigation.
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.
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.
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