There are all sorts of ideas floating around about ultimate GSE reform. Everyone believes their plan is the best. What would be best for the GSE’s and the industry? Should we have one combined agency with some sort of government backing? Should both Fannie and Freddie stay as is but go private? Should they operate like Ginnie? Now, we hear…
In a recent story in Mortgage Orb, I was asked to comment on the MBA white paper called “GSE Reform: Creating a Sustainable, More Vibrant Secondary Mortgage Market.” The white paper discusses the new MBA proposal to have the GSEs “congressionally re-chartered” (re-privatized) and have the mortgage-backed securities that they issue be “explicitly guaranteed!” I stated that in my opinion, the…
It sounds as though we may go back to the old military draft system. No, it’s only for Fannie Mae and Freddie Mac requirements to provide programs to serve the needs of very low, low, and moderate-income home buyers. FHFA announced it is extending the deadline for comments on their Evaluation Guidance to meet these requirements from May 15th to…
Fannie and Freddie previously announced programs for lenders to obtain some relief from their reps and warrants for quality loans. Fannie recently expanded such access to relief under their new Day 1 Certainty program. (D1C) Under D1C, a lender may get complete relief from the normal required reps and warrants associated with employment, income, and/or asset information/documentation. There are some…
The House passed HR 2091, the Flood Insurance Market Parity and Modernization Act, which would allow Fannie and Freddie to accept flood insurance placed through private insurance carriers. This is being praised by the insurance and real estate communities and by many lenders as a good thing for consumers. By allowing the Agencies to accept such coverage, the market for…
No, it’s not a new undersea adventure to raise the Titanic or find some long lost sunken treasures, it’s the movement by the Agencies and FHA to provide low down payment financing to first-time and low-to-moderate income home buyers. About a year ago, both Fannie and Freddie announced the reinstatement of their 3% down payment loan programs. This was done…
