Policymakers at Fannie Mae, Freddie Mac and the FHA need to work with lenders to identify and resolve sources of buyback risk uncertainty in order to loosen the markets grip on tight credit conditions, according to a white paper issued this week by Moodys Analytics and the Urban Institute. Disagreements over lender judgment calls, post-underwriting chances in circumstances and nitpicking over trivial mistakes by the two government-sponsored enterprises and the FHA have stepped up put-backs in ways lenders cannot adequately address through better underwriting or pricing, note paper co-authors Mark Zandi and Jim Parrott. In 2011 and 2012, Fannie and Freddie together required...
The U.S. homeownership rate fell to 63.9 percent in 2012, according to figures compiled by the Census Bureau through its American Community Survey. In case youre keeping tabs, its the fifth year in a row that the rate has gone south.
As the government shutdown continues and many federal workers go without pay checks, theres a growing concern that these potential borrowers will see their credit scores get dinged.
The U.S. Attorneys Office for the District of Connecticut, on behalf of the RMBS Working Group, is seeking an order to compel Clayton to cooperate with a subpoena issued in early July.