Many prospective homebuyers continue asking the same question: When will mortgage rates finally begin to move lower? While many people look to the Federal Reserve for answers, housing economists say the better indicator is often the yield on the 10-year U.S. Treasury note. Although the Fed plays an important role in shaping the broader economy, mortgage rates tend to follow movements in long-term Treasury yields much more closely than changes in the federal funds rate.
Investor enthusiasm surrounding the future of mortgage giants Fannie Mae and Freddie Mac encountered a reality check this week after investment firm BTIG downgraded both companies to a neutral rating, citing growing uncertainty surrounding their long-awaited exit from government conservatorship. The move reflects increasing concern among analysts that meaningful progress toward privatization may take longer than many investors had anticipated.
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.
The U.S. homebuilding sector is feeling the heat as fresh tariff threats from former President Donald Trump’s policy platform stir up anxiety over rising construction costs, casting a shadow over what was shaping up to be a fragile housing market recovery. Shares of major homebuilders—like D.R. Horton, Lennar, PulteGroup, Toll Brothers, KB Home, Taylor Morrison, and Meritage Homes—have slid noticeably in recent days as investors weigh the potential financial fallout from escalating trade measures.
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.
The Federal Housing Administration (FHA) has rescinded a number of appraisal policies instituted during the Biden Administration. In a Mortgagee Letter released last week, FHA rescinded three previous Mortgagee Letters released during the previous administration, effectively restoring the policies in place prior to these three letters.
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.
Mortgage professionals can now access FICO’s Score Mortgage Simulator on the Xactus360 Verification Platform, the companies announced earlier this month. FICO announced the tool in October. It’s designed to simulate potential impacts to a consumer’s FICO score with hypothetical changes in credit report data. Examples include a potential borrower reducing their credit card balance or getting rid of a collection account.
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 Mae and Freddie Mac reported strong financial results for 2024, in what could be the last annual report for the enterprises under government conservatorship. Fannie Mae booked net income of just under $17 billion for the full year, about 2 percent below what it reported in 2023. In its statement, Fannie said last year’s performance was driven by guaranty fee income on its $4 trillion guaranty book of business, “consistent with the transformation of our business model that began well over a decade ago.”
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.
Within days of the introduction of legislation to defund the Consumer Financial Protection Bureau (CFPB), the agency’s director was let go by President Donald Trump. Neither action was surprising to those paying attention to the new administration or the Republican-controlled Congress. The agency has been a point of contention in Congress since it was formed as part of Dodd-Frank in 2010.
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 new President Donald Trump tapped a new director for the Federal Housing Finance Agency (FHFA), the agency has hit the brakes on a major initiative. Trump announced a few days before his January 20 inauguration that he was nominating Bill Pulte to lead FHFA. If confirmed by the Senate, he would replace Sandra Thompson, who resigned just prior to Inauguration Day.
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.
The U.S. Treasury Department and the Federal Housing Finance Agency (FHFA) have amended the Preferred Stock Purchase Agreements (PSPAs) between Treasury and Fannie Mae and Freddie Mac. The move was made “to help ensure that the eventual release of the GSEs from conservatorship will be orderly.” The new agreement contained two key provisions.
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.
The Federal Housing Finance Agency (FHFA) has lowered the benchmarks for affordable housing goals for loan purchases by Fannie Mae and Freddie Mac. The move came despite concerns that the agency should be more aggressive in promoting low-income housing, not less. FHFA issued a final rule last week that establishes new affordable housing goals over the next three years, and updates the process for requiring an action plan when an enterprise misses certain goals.
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 the new year a few weeks away, industry experts are forecasting increased volume and profitability for mortgage lenders in 2025. Last month, Fitch Ratings published an outlook for non-bank mortgage companies. The ratings agency noted that consolidation in this market has strengthened the largest companies in this sector.
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 Mae announced the latest version of its Desktop Underwriter (DU) software last week, but the enterprise isn’t treating this like the usual release. For starters, Fannie has announced version 12.0 nearly two months before it’s released. The enterprise is also using multiple channels to promote the new version, including a promotional video, a white paper, and a Perspectives Blog, in addition to the software release notes.
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.