The rounding of home prices in HMDA data complicates the calculation of whether loans below the conforming loan limits are more likely to be securitized into agency MBS in areas affected by climate change.
Prepayment rates are suppressed due to elevated interest rates, prompting runoff in the Fed’s MBS portfolio to be well below the monthly reduction cap.
Despite their support for a standardized approach for evaluating the validity of an ROV, trade groups disagree that lenders should face fair-lending liability for the valuations made by independent appraisers.