Loan modification is easy when interest rates are low, but what does foreclosure mitigation look like when rates soar?

MBA's finding on origination losses wasn't exactly a surprise...

The Federal Housing Finance Agency will eliminate certain upfront loan-level price adjustments while implementing “targeted” increases for most cash-out refinance transactions. The agency also approved two new credit scoring models for Fannie and Freddie.

Plunging margins since the third quarter of 2020 have driven net profits for originations down about 210 basis points, according to MBA economists.

Even if the scores provide a similar measure of credit risk at one point in time, that equivalency could deteriorate...

MBA President Bob Broeksmit didn’t beat around the bush: “I wish we were gathered under different circumstances.”

If FHFA allows the GSEs to accept multiple credit scores, economists worry similar scores won’t indicate the same level of credit risk.

FHFA must monitor model risk, people risk and resiliency risk at regulated entities, in particular at Fannie Mae and Freddie Mac.

Funding for affordable housing and community investment programs declined across the board as the FHLBanks’ profits waned in 2021.

FHFA has allowed for expanded use of forward commitments to facilitate the development of more affordable housing.