Looking at more than 12 million home appraisals, researchers found that sellers in minority census tracts were more than twice as likely to receive an appraisal below the sale price than sellers in white districts.
The key concern among the industry is the GSEs’ reliance on loan-to-value ratios and debt-to-income ratios. They recommend Fannie and Freddie develop alternative underwriting criteria for low-income borrowers.
Fannie Mae will resume credit-risk transfer program after FHFA proposed capital relief for the transactions. Investors look forward to new opportunities.