FHFA proposed adjusting the capital framework that applies to the GSEs to incorporate planned changes in the usage of credit scores. Lenders want more data before any changes are implemented.
The share of mortgages with low credit scores delivered to Fannie Mae and Freddie Mac declined during the first quarter. Loans from the lowest-risk category accounted for 64.35% of the GSE business. (Includes two data charts.)
Researchers with the Federal Reserve Bank of Philadelphia found a much higher share of mortgages for investment properties than would otherwise be indicated from the occupancy status stated on loan applications.
Even considering factors like credit score and income level, the denial rate for Black mortgage applicants is more than twice that of white applicants, according to an analysis of confidential HMDA data.
Underwriting standards tend to deteriorate in dire circumstances, but GSE sellers appeared to avoid taking excessive risk as 2022 wound down even as sales volumes plummeted. (Includes two data charts.)