Don Layton, under whose leadership Freddie rolled out the first CRT transaction in 2012, said cracks in the GSEs’ CRT programs expose them to systemic risks. The cure: a new capital rule.
Fannie alerts seller/servicers to stiffer fraud detection rules. For example, lenders have 24 hours to report any borrower if they’re found on the Department of Treasury’s foreign assets control sanctions list.
The GSE ditched its energy efficiency home improvement loan product in favor of a more generic product targeting smaller projects. The new HomeStyle Refresh product becomes available at the end of March.
UI researchers explore whether the GSEs, by accepting new loan products, can help alleviate the lock-in effect and improve affordability for homebuyers.
RiskSpan is piloting a platform that would provide the FHLBanks much more precise and timely views into the status and quality of the mortgage loans pledged against their advances.
The MBA advanced a proposal to limit the tri-merge requirements on GSE mortgages to applicants with credit scores below 700, in an effort to reduce the cost of originating loans. Some argue that the real problem is pulling scores for borrowers who are never going to qualify for a mortgage.