Single-family MBS issuance by Fannie Mae and Freddie Mac increased by 8.5% from March to April. Lenders boosted their deliveries without compromising on underwriting standards for purchase mortgages. (Includes two data tables.)
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.
Changes to the scorecard focus on enhancing homeowner engagement strategies, and reducing delinquencies, servicers’ operational costs and credit losses to the enterprise.
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.
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.
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.
Fannie Mae’s net interest income has barely changed over the past 13 quarters, while Freddie Mac’s has increased slightly in all but one of those quarters. (Includes data table.)
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.
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