The Federal Housing Finance Agency (FHFA) has proposed a new mortgage product it hopes will give homeowners a way to tap into home equity without surrendering the low rates they locked in the last several years. The agency sent a notice of a proposed new product to the Federal Register, which would enable Freddie Mac to purchase single-family closed-end second mortgages.
The transition from a three credit report requirement to two reports — known as bi-merge credit reporting — for single-family loans acquired by Fannie Mae and Freddie Mac has faced its share of obstacles. Another potential roadblock to this change was introduced last week.
In case you weren’t aware, 2024 is a presidential election year. That means the usual campaigning and debating is ramped up many times beyond the usual rhetoric of non-election years. Though not as prevalent as other political topics, the housing and mortgage industries are not immune from legislators and policymakers trying to score political points.
President Joe Biden made housing and mortgages a key topic in his State of the Union speech last week, proposing a number of tax credits and proposals to help create more supply and improve affordability. While the President’s housing proposals received mostly positive feedback, one idea met with resistance.
Mortgage and housing experts continue to raise their optimism about the industry in 2024. That includes Fannie Mae. The company’s Economic and Strategic Research Group said last week that existing home sales and single-family housing starts are expected to grow modestly in 2024 amid lower mortgage rates and strengthening homebuyer sentiment.
With the end of 2023 just a month away, the mortgage industry is well into preparing for 2024. This includes a pair of announcements from the Federal Housing Finance Agency (FHFA) and the Government Sponsored Enterprises (GSEs) it oversees.
Opinion-Editorial (Op-Ed) Disclaimer For NAMU® Library Articles: The views and opinions expressed in the NAMU® Library articles are those of the authors and do not necessarily reflect any official NAMU® policy or position. Examples of analysis performed within this article are only examples. They should not be utilized in real-world application as they are based only on very limited and dated open source information. Assumptions made within the analysis are not reflective of the position of NAMU®. Nothing contained in this articles should be considered legal advice.
Fannie Mae and Freddie Mac boasted of strong third quarter financial results, despite the ongoing challenges in the housing and mortgage industries, during their earnings announcements last week. On a year-over-year basis, both GSEs roughly doubled their net income in the third quarter of 2023 compared with the same period a year ago.
Opinion-Editorial (Op-Ed) Disclaimer For NAMU® Library Articles: The views and opinions expressed in the NAMU® Library articles are those of the authors and do not necessarily reflect any official NAMU® policy or position. Examples of analysis performed within this article are only examples. They should not be utilized in real-world application as they are based only on very limited and dated open source information. Assumptions made within the analysis are not reflective of the position of NAMU®. Nothing contained in this articles should be considered legal advice.
A pair of initiatives were announced last week to make getting a mortgage a little easier for some potential homebuyers, as the short-term industry outlook continues to indicate it’s only going to be more challenging to buy a home. The U.S. Department of Housing and Urban Development, through the Federal Housing Administration (FHA), announced a new policy allowing lenders to count rental income from Accessory Dwelling Units (ADUs) when underwriting a mortgage. The policy took effect on the day of the announcement.
Opinion-Editorial (Op-Ed) Disclaimer For NAMU® Library Articles: The views and opinions expressed in the NAMU® Library articles are those of the authors and do not necessarily reflect any official NAMU® policy or position. Examples of analysis performed within this article are only examples. They should not be utilized in real-world application as they are based only on very limited and dated open source information. Assumptions made within the analysis are not reflective of the position of NAMU®. Nothing contained in this articles should be considered legal advice.
Fannie Mae and Freddie Mac released updates to their Selling Guides last week. Both entities addressed changes in rental income policies. Fannie Mae indicated in its bulletin that its Selling Guide update provides additional details for documenting rental income used for qualifying and reconciles differences in the way income earned from subject and non-subject properties is determined.
Opinion-Editorial (Op-Ed) Disclaimer For NAMU® Library Articles: The views and opinions expressed in the NAMU® Library articles are those of the authors and do not necessarily reflect any official NAMU® policy or position. Examples of analysis performed within this article are only examples. They should not be utilized in real-world application as they are based only on very limited and dated open source information. Assumptions made within the analysis are not reflective of the position of NAMU®. Nothing contained in this articles should be considered legal advice.
The Consumer Financial Protection Bureau (CFPB) has issued legal guidance to lenders regarding the use of artificial intelligence (AI). The guidance clarifies that lenders, including mortgage lenders, must provide specific reasons for taking adverse actions against potential borrowers and not rely solely on the results of AI.
Opinion-Editorial (Op-Ed) Disclaimer For NAMU® Library Articles: The views and opinions expressed in the NAMU® Library articles are those of the authors and do not necessarily reflect any official NAMU® policy or position. Examples of analysis performed within this article are only examples. They should not be utilized in real-world application as they are based only on very limited and dated open source information. Assumptions made within the analysis are not reflective of the position of NAMU®. Nothing contained in this articles should be considered legal advice.
The Federal Housing Finance Agency (FHFA) said it expects a delay in the implementation of previously announced credit reporting requirements. The agency also announced that it would seek more public engagement on the transition to updated credit score models and credit report requirements for loans acquired by Fannie Mae and Freddie Mac.
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Fannie Mae economists say recent data points to a stronger economy than previously expected, but a downturn is still imminent. Regardless of whether the economy enters a recession, the Fannie said in its August commentary that home sales are expected to remain subdued.
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A record percentage of survey respondents believe it’s a bad time to buy a home at a time when home prices have reached all-time highs in 30 of the 50 largest markets. In the latest Fannie Mae Home Purchase Sentiment Index® (HPSI), 82 percent of consumers reported that it’s a bad time to buy a home, a new survey high and up from 78 percent the previous month.
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The Community Home Lenders of America (CHLA) wants to the Federal Housing Finance Agency (FHFA) to alter its previously announced implementation schedule for changes in the credit score reporting process. In a letter sent last week to FHFA, CHLA urged the regulatory agency to begin with process using only VantageScore, while deferring use of FICO 10T to a later phase.
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Members of Congress and mortgage industry leaders have spent the past year attempting to eliminate trigger leads. Trigger leads occur when credit bureaus sell a potential borrower’s information after a credit application “triggers” a credit report pull. The credit bureaus can sell the lead to data brokers and other lenders without the consumer’s knowledge or approval.
Opinion-Editorial (Op-Ed) Disclaimer For NAMU® Library Articles: The views and opinions expressed in the NAMU® Library articles are those of the authors and do not necessarily reflect any official NAMU® policy or position. Examples of analysis performed within this article are only examples. They should not be utilized in real-world application as they are based only on very limited and dated open source information. Assumptions made within the analysis are not reflective of the position of NAMU®. Nothing contained in this articles should be considered legal advice.
Written By: Stacey Sprain
As an FHA originator, processor or underwriter, it’s likely that in the ongoing foreclosure market you’ll run across a HUD REO loan at some point. The purpose of this multi-part article is to provide you with some useful information to help in your endeavors.