""Fitch Ratings"":http://www.fitchratings.com/web/en/dynamic/fitch-home.jsp released a commentary Thursday asserting that FHFA's plan to clarify the triggers for a loan repurchase request could be a boon for the larger industry.
[IMAGE] [COLUMN_BREAK]FHFA had made an earlier announcement that the agency intended to clarify its positions on the appropriate triggers for a putback request from Fannie Mae and Freddie Mac. The GSEs have asked for more than $80 billion in flawed loan repurchases from lenders over the past three years. As a result, it has been argued that lenders have raised standards for loans beyond what many homebuyers can achieve. The resulting reduction in mortgage credit availability has negatively affected the housing recovery, said Fitch.
In the commentary, Fitch suggested that laying out putback triggers and reducing putback liability will have an overall positive effect for the housing market.
""Fitch believes that improved clarity on potential repurchase demands and related liability may help ease lenders' concerns and improve credit availability. Establishing clear and detailed repurchase standards, developing reporting and enforcement mechanisms, and creating clear timelines that govern the process would be positive steps welcome by lenders and investors alike.""