FHFA's stance has mortgage bankers perplexed, to say the least...

The $13 million Milbank contract, which follows the agency’s February selection of Houlihan Lokey as its capital markets advisor, suggests the FHFA remains committed to recap-and-release.

FHFA Director Mark Calabria: “The lenders I’m talking to have said that 75% to 80% of their calls are from people who are not yet facing hardship. They just want to know what their options are.”

The new “flexibilities” cover both originations and appraisals. On the origination front, Fannie and Freddie will reduce the acceptable age of income documentation on most loans to 60 days from 120...