With a Federal Reserve rate cut all but certain in the coming days, financial professionals are advising Americans to brace for a new wave of economic ripple effects. While markets have priced in a quarter-point reduction, the move could still influence everything from mortgage rates to savings yields—and not always in obvious ways.
August saw a dramatic shift in mortgage market behavior as rate-and-term refinances surged and non-QM lending hit its highest level to date. While purchase activity continued to cool, a wave of homeowners rushed to take advantage of slightly improved rates, and lenders expanded their reach with creative non-agency loan offerings.
The administration may declare a national housing emergency as early as this fall, according to Treasury Secretary Scott Bessent. While no official framework has been released, potential executive actions under consideration include standardizing local building and zoning codes, lowering closing costs, and granting tariff waivers on construction materials.
The Mortgage Bankers Association (MBA) has formally raised concerns to the Federal Housing Administration (FHA) about how Buy Now, Pay Later (BNPL) debt should be treated in mortgage underwriting. In a letter submitted on August 25, the MBA highlighted risks that could undermine borrower affordability assessments and FHA’s financial safeguards.
Markets were taken by surprise after a highly controversial decision from the White House rattled investor sentiment and reignited concerns about the political independence of the Federal Reserve. The sudden announcement of a Federal Reserve governor’s removal—based on disputed allegations of past mortgage-related impropriety—has triggered legal challenges and intensified debate about executive authority over monetary policy institutions.
Recently, in our office there has been an ongoing difference of interpretations based on “guidelines” and how to implement them. It is a strong lesson in how each of us when underwriting must be able to use our own vast book of experiences, dig into our bag of tricks and come out with the answers that will be able to justify an answer on each loan that has been submitted to us as FHA DE Underwriters……some FHA loans are very easy to approve and the justifications are the same practical reasons that we use on most of our HUD LT’s.
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.
As most of you are aware, I teach a few government underwriting classes for FHA Online University. Very recently while teaching the underwriting courses I have decided that there are two types of underwriters, those that embrace underwriting in the truest sense of the word and by that I mean underwriting beyond the AUS finding and those underwriters that still embrace the AUS as the literal decision and by this I mean an underwriter that has chosen to remove themselves from the underwriting process to act solely as one who validates the AUS, which has made the decision.
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.
With all of the recently implemented FHA appraiser and appraisal changes, it can be somewhat confusing as to what detail and information you as a loan officer or processor may need to be aware of when it comes to new appraisal orders and appraisals received as the result of case transfers.
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.
There’s no question credit underwriting guidelines have tightened. So much so that a person pretty much needs excellent credit just to be able to refinance to a lower interest rate nowadays. Occasionally, I receive inquiries from people asking for advice on what to tell former clients who are facing foreclosure due to financial struggles because we have few if any lending options remaining to help them.
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.
Hello Everybody – Cannot believe 2009 is going by so fast. As I stated last week – not much is really going on with changing guidelines, etc. with FHA, which is why I am going back to basics for a few weeks. Sometimes it is the basic that can be the most confusing.
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.