The Federal Housing Finance Agency (FHFA) this week issued a public request for information for plans submitted by government-sponsored enterprises (GSEs) Fannie Mae and Freddie Mac under the Duty to Serve (DTS) program that aims to serve underserved markets from 2025 through 2027. Established by the Housing and Economic Recovery Act (HERA) of 2008, the [...]read moreFHFA seeks public comment on GSEs’ underserved markets plans
Fannie Mae and Freddie Mac on Wednesday announced an update to one of their loss-mitigation solutions known as Flex Modification. The government-sponsored enterprises (GSEs) are now targeting a 20% reduction in principal and interest (P&I) payments to keep borrowers facing permanent financial stress in their homes. “The Enterprises have completed over half a million modifications [...]read moreGSEs update Flex Modification program, target 20% P&I reduction
On Wednesday, the FHFA closed the comment period for the proposal, which was opened in April. In their letter, Republicans called the 30-day period “insufficient.” If the product is approved as proposed, it will have terms of up to 20 years, be manually underwritten and remain in Freddie Mac’s portfolio for six to nine months [...]read moreRepublicans tell FHFA they oppose Freddie Mac’s closed-end second mortgage proposal
FHFA, in its March 2024 research paper, The Lock-In Effect of Rising Mortgage Rates, quantified the degree to which rising mortgage rates slowed housing purchases in 2023. Researchers developed a framework for estimating the number of home sales in 2024 based on the current levels for mortgage rates. They concluded that the net effect of [...]read moreThe mortgage rate lock-in didn’t start in 2022
Despite persistently high interest rates, big four title firm Fidelity National Financial recorded a much stronger start to 2024 than it did a year ago. In first-quarter 2024, Fidelity reported total revenue of $3.299 billion, up from $2.474 billion a year ago. Its net earnings were $248 million, compared to a $59 million net loss [...]read moreFidelity CEO says federal government’s title insurance proposals are ’misguided’
A coalition of trade organizations — including the American Bankers Association (ABA), the Housing Policy Council (HPC), the Independent Community Bankers of America (ICBA), the Mortgage Bankers Association (MBA) and U.S. Mortgage Insurers — sent a letter on Monday to the Federal Housing Finance Agency (FHFA) to express concerns about the FHFA’s intent to publish [...]read moreTrade groups express concern to FHFA over historic credit data
A recently published report by the Financial Stability Oversight Council (FSOC) identified vulnerabilities at nonbank mortgage servicers that pose risks to financial stability. It recommended increased regulation and initiatives to improve these companies’ liquidity during moments of stress, but mortgage trade groups have different reactions to the proposals. The attention on nonbank mortgage companies have increased since their [...]read moreFSOC recommends more regulation and liquidity for nonbank servicers
Sam Valverde, formerly the principal executive vice president of government-owned corporation Ginnie Mae, was named as its acting president as of May 6, according to an announcement issued by the organization this week. Sam Valverde Valverde succeeds Alanna McCargo, who began serving as Ginnie Mae president in January 2022 until announcing her resignation in April. [...]read moreValverde appointed acting president of Ginnie Mae
The U.S. Department of Housing and Urban Development (HUD) on Thursday announced new guidelines that aim to apply the provisions of the Fair Housing Act to the use of generative artificial intelligence (AI) in the realm of housing. HUD released separate pieces of guidance aimed at applying Fair Housing Act provisions to two key areas [...]read moreHUD issues Fair Housing Act guidance on AI use
The U.S. Department of Housing and Urban Development (HUD) and the Federal Housing Administration (FHA) announced a new policy on Wednesday that will enable mortgage borrowers to “request a re-assessment of the appraised value of their property if they believe that the appraisal was inaccurate or biased,” according to an announcement from HUD. “The Reconsideration [...]read moreHUD and FHA announce new appraisal bias protections