Silvio Tavares waited years for news that finally arrived in July: government-sponsored enterprises Fannie Mae and Freddie Mac would finally allow lenders to use something other than a FICO score to determine whether a customer is credit-worthy enough to buy a home. The wonky policy change, delivered via a social media post after years of […]
Fannie, Freddie win for VantageScore causes pain for FICO shares Read More »
The Federal Housing Finance Agency (FHFA) issued a proposed rule to repeal its Fair Lending, Fair Housing and Equitable Housing Finance Plan requirements — regulations it finalized barely a year ago — and is inviting the public to comment on this proposal until Sept. 26. It is one of the agency’s swiftest reversals of a
FHFA’s fair lending reversal risks housing market stability Read More »
Fannie Mae made downward revisions to mortgage rate forecasts in its latest monthly economic update with projections for higher volumes than previously anticipated next year. The government-sponsored enterprise revised the average 30-year fixed-rate mortgage projection for fourth-quarter 2025 to 6.4% from 6.5%, and the one for the same loan type a year further out to
Where Fannie Mae anticipates rates will head next Read More »
A rapid plunge in U.S. interest-rate volatility is heaping pain on a popular Wall Street approach for hedging against financial market turmoil. In recent years, major banks have been building and selling protective quantitative investment strategies (QIS) tied to long-term expectations for swings in interest rates. The products — systematic trades packaged up as swaps for the
Rates ‘Volmageddon’ hammers Wall Street tail hedge Read More »
The regulator for two government-related mortgage investors is leaving the Network of Central Banks and Supervisors for Greening the Financial System, according to the former’s director. Director Bill Pulte informally circulated the departure on the social media platform X in line with his practice of using that forum to announce new policy. Pulte heads the
Why FHFA is exiting network for ‘greening’ financial system Read More »
The long-term rate drop in anticipation of the latest Federal Open Market Committee has affected servicing, but since the confirmation of a 25 basis point FOMC cut has stabilized financing costs the impact currently appears limited on a go-forward basis. “Servicers should expect a pickup in refinances as there are a significant number of households
What the current Fed rate outlook means for servicing Read More »
Financial technology firm Pacaso has closed on a revolving credit facility it will use to enable sales of 30-year second-home mortgages with co-borrowers into the securitized market. The $100 million facility from Texas Capital Bank will fund Pacaso’s purchases of the mortgages, which have an initial five-year interest-only period. It also will accommodate inclusion of
Pacaso gets funding for non-QM co-borrower securitizations Read More »
Mortgage REITs are snapping up bonds backed by US home loans at a pace last seen before the pandemic, taking advantage of relatively cheap valuations and rallies in their own shares that helped them raise fresh cash. These real estate investment trusts are expected to buy about $30 billion of mortgage debt securities on a
Mortgage bonds are finding ready buyers in REITs flush with cash Read More »
New data shows growing use of product, pricing and eligibility engines has given nonbank mortgage executives, their loan officers and others more immediate access to capital-markets information that could be a competitive advantage. It also points to opportunities that could jumpstart mortgage professionals’ careers, depending on their goals and interest in these developments. Most of
Why cap markets tech use has grown and what it means for LOs Read More »
United Wholesale Mortgage is the first major lender this year to raise its conforming loan limits in advance of the formal announcement in November by the Federal Housing Finance Agency. Even though UWM will start obtaining loans with these higher limits from mortgage brokers immediately, it will need to keep the mortgages on its balance
UWM first to raise its conforming limits for 2026 Read More »