The mortgage industry is welcoming the Department of Veterans Affairs’ finalized loss mitigation and partial claim framework, with lenders, servicers, and housing trade groups describing the new approach as an important step toward helping veterans remain in their homes during periods of financial hardship. The policy is expected to provide a long-term solution for struggling VA borrowers while offering mortgage servicers a clearer path for assisting homeowners who fall behind on their payments.
Growing concern is emerging within the housing finance industry after reports suggested that administrative failures tied to federal oversight may place a significant number of reverse mortgage borrowers at risk of default. The issue centers on compliance management within the government-backed reverse mortgage program, where critics argue that breakdowns in monitoring and enforcement could create serious consequences for older homeowners who rely on these loans to remain financially stable.
Debate surrounding the future of Fannie Mae and Freddie Mac has resurfaced after comments from Federal Housing Finance Agency Director Bill Pulte suggested that any potential initial public offerings for the mortgage giants will ultimately depend on former President Donald Trump. The remarks have reignited discussions about whether the government-sponsored enterprises could eventually exit conservatorship after more than a decade under federal control.
Fannie Mae’s latest outlook signals a transition period for the housing market, with expectations that mortgage rates could gradually ease while home price growth moderates in the coming year. The forecast reflects evolving economic conditions, including changes in inflation trends and interest rate expectations, which continue to shape both borrowing costs and housing demand.
Fannie Mae’s latest outlook suggests that mortgage rates may remain higher for longer than many had anticipated, reflecting persistent inflation pressures and ongoing economic uncertainty. The revised expectations highlight the challenges facing the housing market as borrowers continue to navigate elevated borrowing costs alongside limited housing supply.
The past year has seen sweeping changes in almost every area of loan origination, underwriting guidelines, and loan disclosures. USDA and FHA have both created new handbooks that came with completely new guidelines. The CFPB introduced the Loan Estimate and Closing Disclosures which replaced the Good Faith Estimate, TIL, and HUD-1. Fannie Mae and Freddie Mac introduced new guidelines for many topics including review of Schedule-A Unreimbursed Expenses and required reserves for borrowers retaining their home as a secondary or rental property.
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.
In the days of CFPB debt ratio thresholds and tighter lending restrictions, every underwriter needs to have a few tricks up their sleeve for saving debt ratios. Usually we try to use the more conservative income calculation to avoid investor push-back. However, there are a few perfectly provable income sources that we can use to support a lower debt ratio and return an approve/eligible or accept finding
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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.
In response to the CFPB’s Ability to Repay (ATR) and Qualified Mortgage (QM) rules, leading investors have instituted a Debt, Income, and Asset Verification Worksheet. This worksheet was created to provide consistency and uniformity in the reporting of underwriter rationale in determining the borrower’s ability to repay. Some lenders are adding this form (or a screen) into their loan origination system.
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.
One of the hottest topics in the mortgage industry today is the Consumer Protection Financial Bureau’s (CFPB) sweeping regulatory reforms. Many are questioning how the new rules will impact the industry and whether the reforms are positive or negative. Some have concerns for our ability to remain productive and profitable with so many new restrictions.
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.
Written By: Bonnie Wildt
I have said it before and I will say it again and that is, do not believe everything you hear or read for that matter. In this particular instance I am referring to AUS Findings. I have had countless conversations with processors and loan officer who want to know why I am asking for documentation that the AUS findings have clearly stated wasn’t needed or worse, they can’t believe I am turning a loan down that has an Approve/Eligible. So here it is again and pay particular attention to the details because just because you have an Approve/Eligible or Accept doesn’t necessarily mean you have a done deal.