By one estimate, if Fannie’s title acceptance pilot were allowed to expand, it could save consumers as much as $96 million a year without significantly increasing the risk of title defects.
Federal Reserve Governor Christopher Waller said the central bank’s balance sheet hasn’t grown as much as people think, but that MBS sales might be needed to balance the duration of assets and liabilities.
It may take time for MBS investors to fully understand how use of the new credit score for underwriting loans sold to the GSEs impacts pricing and hedge strategies.