GSEs

A House Financial Services Committee hearing featured industry experts dissecting the FHFA’s recent changes to the loan-level price adjustment fee structure used by the GSEs.

New capabilities will assist lenders in calculating income more quickly and precisely, thus reducing risk and helping serve more qualified borrowers.

Fannie Mae is still predicting recession conditions to occur this year due to a slow down in the economy, and a tightening of credit standards.

Agency soliciting public comments on how its pricing framework protects Fannie Mae, Freddie Mac, and taxpayers against potential future losses, while supporting affordable, sustainable housing and first-time homebuyers.

By revoking the upfront fees based on borrowers’ DTI ratios for loans acquired by Fannie Mae and Freddie Mac, the FHFA continues its engagement to improve clarity and transparency regarding the GSEs’ pricing framework.

“This month’s increase in the HPSI was the largest in over two years, primarily driven by consumers’ more optimistic mortgage rate expectations,” said Doug Duncan, Fannie Mae’s SVP and Chief Economist.

Despite an up-and-down housing market in the first quarter of 2023, both Fannie Mae and Freddie Mac were profitable, proving to be a source of stability for the housing finance system.

As part of the GSE’s effort to reduce taxpayer risk by increasing the role of private capital in the mortgage market, CIRT 2023-4 transfers $501 million-plus in mortgage credit risk to private insurers and reinsurers.

Federal Housing Finance Agency (FHFA) Director Sandra L. Thompson has released a new statement addressing the pricing framework of Fannie Mae and Freddie Mac.

FHFA expects this rulemaking to provide increased public transparency and greater oversight and accountability of the regulated entities’ fair housing and fair lending compliance.