It’s been four months since FHFA approved new credit scoring models for loans delivered to the GSEs. While the transition wasn’t going to be quick, industry participants are still waiting on a timeline.

By booking a higher provision for credit losses in the third quarter, Freddie set the stage for improved financial performance in the fourth.

Most Fannie Mae and Freddie Mac policies regarding loan eligibility have returned to pre-pandemic standards.

While the GSEs are under mandates to shrink their retained portfolios, Freddie’s holdings increased in the final three months of 2022. (Includes data chart.)

Loss provisions and declining volumes spell lower profits going forward. However, Fannie’s capital requirements remain elevated.

The industry believes a DTI-based LLPA will create quality-control issues for lenders and raise prices for minority and first-time homebuyers.

Patrick McHenry, R-NC, new chair of the House Financial Services Committee, is viewed as a consensus-maker. But will his politics make it difficult to find common ground with the White House and Senate?

The TILA-RESPA Integrated Disclosure rules require mortgage lenders to disclose prices within three days of an application. But to do so they have to rely on frequently faulty income and debt information.

Upfront fees will decline for most low-income borrowers, but will increase for some middle-income homebuyers. The result is more cross-subsidy for the GSEs’ mission-based activities.

In a reissued bulletin, the mortgage giant said it will allow some duty-to-serve cash-out refinances to receive 0% credit fee caps because of the confusion caused by an earlier notice.