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.
FHFA argued that the award was an unjustified windfall for GSE shareholders, many of whom knew about the net worth sweep when they purchased the stock.
Industry watchers believe GSE reform is probably off the table until after the mid-term elections at least, as the administration’s focus has shifted to other priorities.
GAO auditors suggested FHFA update its procedures for how accounting personnel consider the impact significant policy changes may have on its financial reporting. FHFA declines, saying the current procedures are fine.
A new study found that using real estate agent-referred lenders not only increases borrowing costs for homebuyers but also shifts the burden of those costs disproportionately to the most vulnerable households.
In a note to investors last week, Goldman Sachs Managing Director Arun Manohar said he is not particularly optimistic about the longer-term success of VantageScore 4.0 in the agency MBS market.