FHA Announces Measures to Better Manage Risk

FHA Announces Measures to Better Manage Risk

Written By: Joel Palmer, Op-Ed Writer

Last month, the Federal Housing Administration (FHA) announced changes to underwriting requirements to mitigate high-risk mortgage applications. The agency has updated its Technology Open to Approved Lenders (TOTAL) mortgage scorecard “to manage the decrease in average borrower credit scores and the excessive risk layering that results when multiple risk factors are present.”


Opinion-Editorial (Op-Ed) Disclaimer For NAMP® Library Articles: The views and opinions expressed in the NAMP® Library articles are those of the authors and do not necessarily reflect any official NAMP® 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 NAMP®. Nothing contained in this article should be considered legal advice.

Senate Confirms Calabria as FHFA Director

Senate Confirms Calabria as FHFA Director

Written By: Joel Palmer, Op-Ed Writer

Last month, the U.S. Senate confirmed the appointment of Mark A. Calabria as director of the Federal Housing Finance Agency (FHFA). Calabria, who was nominated by President Donald Trump in December, was confirmed on a 52-44 vote. The vote went along party lines, with the 52 affirming votes coming from all Republicans and all 44 no votes coming from Democrats.


Opinion-Editorial (Op-Ed) Disclaimer For NAMP® Library Articles: The views and opinions expressed in the NAMP® Library articles are those of the authors and do not necessarily reflect any official NAMP® 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 NAMP®. Nothing contained in this article should be considered legal advice.

Fannie and Freddie Offer Refinance Programs Underwater Homeowners

Fannie and Freddie Offer Refinance Programs Underwater Homeowners

Written By: Joel Palmer, Op-Ed Writer

Both Freddie Mac and Fannie Mae have programs that provide refinance options for borrowers whose loan-to-value ration on a new mortgage would exceed the maximum allowed for standard limited no cash-out refinances. The programs were announced last year in conjunction with the end of the the Federal Housing Finance Agency’s Home Affordable Refinance Program (HARP).


Opinion-Editorial (Op-Ed) Disclaimer For NAMP® Library Articles: The views and opinions expressed in the NAMP® Library articles are those of the authors and do not necessarily reflect any official NAMP® 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 NAMP®. Nothing contained in this article should be considered legal advice.

AIM for Self-employed Borrowers Available Through Freddie Mac

AIM for Self-employed Borrowers Available Through Freddie Mac

Written By: Joel Palmer, Op-Ed Writer

Freddie Mac’s asset and income modeler (AIM) is now available for self-employed borrowers through Loan Product Advisor, the company’s automated underwriting system (AUS). Freddie Mac said in a statement that its offering is on the only AUS-integrated solution in the industry that can assess self-employed income.


Opinion-Editorial (Op-Ed) Disclaimer For NAMP® Library Articles: The views and opinions expressed in the NAMP® Library articles are those of the authors and do not necessarily reflect any official NAMP® 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 NAMP®. Nothing contained in this article should be considered legal advice.

FHA Announces Guidance for Using Third Parties to Verify Financials on Reverse Mortgage Underwriting

FHA Announces Guidance for Using Third Parties to Verify Financials on Reverse Mortgage Underwriting

Written By: Joel Palmer, Op-Ed Writer

The Federal Housing Administration (FHA) published a mortgagee letter last month that provides guidance on the use of third-party verification (TPV) services to verify a borrower’s employment, income, and asset information. The guidance applies to all FHA Title II forward mortgages and Home Equity Conversion Mortgages (HECM).


Opinion-Editorial (Op-Ed) Disclaimer For NAMP® Library Articles: The views and opinions expressed in the NAMP® Library articles are those of the authors and do not necessarily reflect any official NAMP® 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 NAMP®. Nothing contained in this article should be considered legal advice.

Fannie Lowers Q1 Housing Projections but Sees Strong Spring Buying Season

Fannie Lowers Q1 Housing Projections but Sees Strong Spring Buying Season

Written By: Joel Palmer, Op-Ed Writer

Fannie Mae has revised downward its forecast for first-quarter economic growth as well as home sales and purchase mortgage originations. Fannie’s February economic forecast includes a prediction of 1.7 percent annualized economic growth during the first quarter of 2019. That’s down 0.1 percent from its previous forecast. It’s also well below the 2.8 percent growth Fannie expects to be reported for the fourth quarter of 2018.


Opinion-Editorial (Op-Ed) Disclaimer For NAMP® Library Articles: The views and opinions expressed in the NAMP® Library articles are those of the authors and do not necessarily reflect any official NAMP® 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 NAMP®. Nothing contained in this article should be considered legal advice.

Fannie Forecasts Stable Mortgage Rates and Home Sales

Fannie Forecasts Stable Mortgage Rates and Home Sales

Written By: Joel Palmer, Op-Ed Writer

Fannie Mae expects the Federal Reserve to limit itself to one rate hike in 2019, which it says will help home sales stabilize this year. In its recently released January Economic and Housing Outlook, Fannie said it expects mortgage rates to hover around the 4.5 percent mark, where they ended 2018. It also predicts slower house price appreciation of 4.2 percent in 2019, compared with 5.5 percent in 2018.


Opinion-Editorial (Op-Ed) Disclaimer For NAMP® Library Articles: The views and opinions expressed in the NAMP® Library articles are those of the authors and do not necessarily reflect any official NAMP® 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 NAMP®. Nothing contained in this article should be considered legal advice.

Fannie Provides Lender Guidance for Loans Affected by Government Shutdown

Fannie Provides Lender Guidance for Loans Affected by Government Shutdown

Written By: Joel Palmer, Op-Ed Writer

Fannie Mae has released guidance on selling and servicing policies impacted by the federal government shutdown that began before Christmas. Fannie said in a letter to lenders that the guidance is based on the assumption that the shutdown will be temporary. Once the shutdown is over, the policies covered in the letter will expire immediately. Fannie also said that it may provide additional guidance if the shutdown lasts for a prolonged period.


Opinion-Editorial (Op-Ed) Disclaimer For NAMP® Library Articles: The views and opinions expressed in the NAMP® Library articles are those of the authors and do not necessarily reflect any official NAMP® 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 NAMP®. Nothing contained in this article should be considered legal advice.

What Housing Experts Foresee in 2019

What Housing Experts Foresee in 2019

Written By: Joel Palmer, Op-Ed Writer

What can mortgage processors and underwriters expect in 2019? According to housing experts, overall home sales should increase next year, but there are areas of concern. Freddie Mac Chief Economist Sam Khater said home sales should “modestly increase” in 2019, provided that economic growth remains stable and mortgage rates stay below 5.25 percent.


Opinion-Editorial (Op-Ed) Disclaimer For NAMP® Library Articles: The views and opinions expressed in the NAMP® Library articles are those of the authors and do not necessarily reflect any official NAMP® 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 NAMP®. Nothing contained in this article should be considered legal advice.

FHFA Announces Proposed Rule to Approve Third-party Credit Score Models

FHFA Announces Proposed Rule to Approve Third-party Credit Score Models

Written By: Joel Palmer, Op-Ed Writer

The Federal Housing Finance Agency (FHFA) released a proposed rule to validate and approve third-party credit score models used by Fannie and Freddie Mac. The proposal is required by Section 310 of the Economic Growth, Regulatory Relief, and Consumer Protection Act enacted in May.


Opinion-Editorial (Op-Ed) Disclaimer For NAMP® Library Articles: The views and opinions expressed in the NAMP® Library articles are those of the authors and do not necessarily reflect any official NAMP® 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 NAMP®. Nothing contained in this article should be considered legal advice.