A new report allays concerns that a recent request for input from the regulator regarding pooling practices was an indication that something was amiss.
Layton notes that in the first full quarter under the new UMBS regime the Freddie discount fell to just 1 basis point, 80% off its historic average, and dramatically lower than the 10 bp gap in 1Q19.
The NPL sold by the enterprises had an average delinquency of three years and a loan-to-value ratio of 92%. Fannie accounted for 78,281, or two-thirds, of these sales between Jan. 1 and June 30.
The nation's GSE regulator meets the Federalist Society: “What we’ve been able to do in the eight months that I’ve been here is cut the percentage of business that has multiple risk factors in half."
Part of the problem is that the current proposed rule was a product of the previous director and much has changed since the rulemaking began a year ago.
The increase reflects a 5.38% surge in the price of the average home from the third quarter of 2018 to the third quarter of 2019, as calculated in FHFA’s House Price Index.