The share of GSE purchase mortgages with credit scores of at least 740 increased from 73.8% in the first quarter of 2025 to 74.6% in the second quarter. A similar trend was seen in GSE refi business. (Includes two data tables.)
In states with data privacy laws, the mortgage-denial gap between minority and non-minority mortgage borrowers is 3% lower than in states without the privacy laws, according to researchers.
Rent payment history and bank account income verification are just the start. Machine learning algorithms also promise better risk assessment and more accurate pricing for that risk.
Refi business moved toward lower LTV ratios and lower credit scores in the first quarter. Characteristics for purchase mortgages held steady compared with the fourth quarter of 2024. (Includes two data tables.)
Changes to the pricing grids of Fannie Mae and Freddie Mac last May created a natural experiment for researchers to study how changes to guarantee fees impact the housing market.
Experienced appraisers combine flood disclosure information and local knowledge to provide appraisal values that reflect the underlying risk to the property. And less-experienced appraisers were found to assign higher property values to homes in flood areas.
The jump in refinance business, and a shift from cash-out to rate-term transactions, changed the credit-risk profile for Fannie and Freddie in the fourth quarter.
The quality control team at Fannie Mae identified “red flags” that could indicate borrowers have mischaracterized whether they’re seeking a mortgage for a primary residence or for a second home or investment property.
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