Fannie paused its CRT issuance in 2020 after the FHFA proposed changes to the capital treatment of CRT transactions. Freddie continued to issue deals, but Fannie wasn’t persuaded to return until a proposal by the FHFA in September.
The flexibility and innovation shown by mortgage lenders during the pandemic should be incorporated into everyday practices, according to panelists at the Mortgage Bankers Association’s annual convention.
Given the home price spike seen in the past 18 months, many distressed borrowers have enough equity to sell their homes rather than face foreclosure. Still, previous practices suggest that a notable share of borrowers with strong equity positions will go through foreclosure.
Less than 30% of younger recent homebuyers report feeling that mortgage lenders are “trustworthy and reliable.” Millennials and Generation Z also are heavily reliant on the internet to fill gaps in financial education.
UWM accepted six mortgage payments with cryptocurrency before ending the pilot program; closing costs increased in the first half of 2021; Fannie strengthened underwriting standards for condos and co-ops.