Fannie Mae’s (FNMA) stock has endured a turbulent stretch, falling nearly 15% over the past month after soaring earlier in the year. While year‑to‑date gains still look strong, the recent pullback has captured investor attention and reignited questions about how the company’s equity should be valued going forward.
The ongoing U.S. government shutdown is casting a shadow over the housing market, particularly in flood-prone areas where federally backed flood insurance is essential for mortgage approvals. Without legislative action to renew funding, thousands of home sales could stall each day, costing the real estate market billions in lost transactions.
Mortgage rates edged lower this week, but the moves were modest, offering only a sliver of relief for would‑be homebuyers and refinance seekers. Analysts warn that meaningful rate declines are still tied to broader economic shifts — not just a few basis points here and there.
A little‑publicized policy update could reshape the dynamics of mortgage lending: Fannie Mae and Freddie Mac will now accept VantageScore 4.0 in place of—or alongside—traditional FICO scoring. The change, delivered via social media and internal guidance, finally gives formal approval to a credit model that has long been positioned as an alternative to FICO.
The Federal Reserve’s recent decision to lower its benchmark federal funds rate by a quarter point to a range of 4.00%–4.25% marks its first rate cut since December—an effort to stimulate economic activity amid a cooling job market and fading inflationary pressures.
Mortgage underwriters and processors who are interested can keep themselves busy for a while studying a pair of recently released sets of data. The Federal Financial Institutions Examination Council (FFIEC) released data on 2022 mortgage lending transactions reported under the Home Mortgage Disclosure Act (HMDA). The data was compiled from records by 4,460 U.S. financial institutions, including banks, savings associations, credit unions, and mortgage companies.
Opinion-Editorial (Op-Ed) Disclaimer For NAMU® Library Articles: The views and opinions expressed in the NAMU® Library articles are those of the authors and do not necessarily reflect any official NAMU® 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 NAMU®. Nothing contained in this articles should be considered legal advice.
A housing shortage for potential middle income buyers and decreasing optimism from all potential buyers is contributing to fewer purchase originations for mortgage processors and underwriters. But there’s potential good news in that the next generation of potential homeowners remains interested in ownership.
Opinion-Editorial (Op-Ed) Disclaimer For NAMU® Library Articles: The views and opinions expressed in the NAMU® Library articles are those of the authors and do not necessarily reflect any official NAMU® 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 NAMU®. Nothing contained in this articles should be considered legal advice.
Mortgage underwriters and processors have been dealing with fewer originations with higher home values, according to several sources of industry data. U.S. house prices rose 4.3 percent between the first quarters of last year and this year, according to the Federal Housing Finance Agency (FHFA) House Price Index.
Opinion-Editorial (Op-Ed) Disclaimer For NAMU® Library Articles: The views and opinions expressed in the NAMU® Library articles are those of the authors and do not necessarily reflect any official NAMU® 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 NAMU®. Nothing contained in this articles should be considered legal advice.
The Federal Housing Finance Agency (FHFA) officially issued a Request for Input (RFI) on Fannie Mae and Freddie Mac’s (the Enterprises) single-family pricing framework just a few days after rescinding a key upfront fee set to take effect August 1. The agency said the aim of the RFI is to solicit public feedback “on the goals and policy priorities that FHFA should pursue in its oversight of the pricing framework.”
Opinion-Editorial (Op-Ed) Disclaimer For NAMU® Library Articles: The views and opinions expressed in the NAMU® Library articles are those of the authors and do not necessarily reflect any official NAMU® 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 NAMU®. Nothing contained in this articles should be considered legal advice.
Fannie Mae and Freddie Mac delivered lower year-over-year financial results in the first quarter of 2023 in what both companies termed a “volatile” and “uncertain” market. The two enterprises released their quarterly results last week.
Opinion-Editorial (Op-Ed) Disclaimer For NAMU® Library Articles: The views and opinions expressed in the NAMU® Library articles are those of the authors and do not necessarily reflect any official NAMU® 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 NAMU®. Nothing contained in this articles should be considered legal advice.
The Federal Housing Finance Agency (FHFA) wants to codify many of its existing practices and programs to better ensure fair housing and lending oversight of its regulated entities. In a notice of proposed rule making released last week, FHFA is seeking comments on its proposal to codify into regulation.
Opinion-Editorial (Op-Ed) Disclaimer For NAMU® Library Articles: The views and opinions expressed in the NAMU® Library articles are those of the authors and do not necessarily reflect any official NAMU® 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 NAMU®. Nothing contained in this articles should be considered legal advice.
The Federal Housing Finance Agency (FHFA) announced updates to Fannie Mae and Freddie Mac’s Equitable Housing Finance Plans for 2023. FHFA said the updates build upon the initial plans released in June 2022. There are also adjustments to the initial plans based on research and findings.
Opinion-Editorial (Op-Ed) Disclaimer For NAMU® Library Articles: The views and opinions expressed in the NAMU® Library articles are those of the authors and do not necessarily reflect any official NAMU® 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 NAMU®. Nothing contained in this articles should be considered legal advice.
The Federal Housing Finance Agency (FHFA) will soon begin to gather industry feedback on implementation of new credit score models with the goal of incorporating those models by the fourth quarter of 2025. Last week, FHFA announced its timeline for replacing the Classic FICO credit score model with FICO 10T and VantageScore 4.0.
Opinion-Editorial (Op-Ed) Disclaimer For NAMU® Library Articles: The views and opinions expressed in the NAMU® Library articles are those of the authors and do not necessarily reflect any official NAMU® 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 NAMU®. Nothing contained in this articles should be considered legal advice.
Data released this week shows that housing sentiment is at a low while the average monthly mortgage payment is at an all-time high. Neither trend looks to subside anytime soon, with another report this past week showing the U.S. housing market is short about 6.5 million single-family homes.
Opinion-Editorial (Op-Ed) Disclaimer For NAMU® Library Articles: The views and opinions expressed in the NAMU® Library articles are those of the authors and do not necessarily reflect any official NAMU® 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 NAMU®. Nothing contained in this articles should be considered legal advice.
After delaying its latest earnings report by a week, Freddie Mac reported declines in net income for the fourth quarter and full-year of 2022. Freddie reported net income of $1.8 billion for the fourth quarter, a 36 percent decrease year-over-year, which the company said was driven by lower net revenues and a credit reserve build in its single-family business.
Opinion-Editorial (Op-Ed) Disclaimer For NAMU® Library Articles: The views and opinions expressed in the NAMU® Library articles are those of the authors and do not necessarily reflect any official NAMU® 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 NAMU®. Nothing contained in this articles should be considered legal advice.
Written By: Stacey Sprain
As an FHA originator, processor or underwriter, it’s likely that in the ongoing foreclosure market you’ll run across a HUD REO loan at some point. The purpose of this multi-part article is to provide you with some useful information to help in your endeavors.