Between 2022 and 2024, Fannie’s open multifamily fraud investigations spiked from 14 to 193. In the same interval, actual fraud findings went from 3 to 87.
Freddie is revising its liquidity verification documentation requirements for sponsors to include a liquidity verification worksheet with delivery of the full underwriting package.
Lenders are ultimately responsible for the quality and accuracy of appraisals. That means their quality control teams need to review every appraisal to preserve rep-and-warrant protection.
Urban Institute researchers said in a recent report that only strategies that catalyze new construction can truly address the housing affordability problem.
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.