The federal government should move forbearance to the front of the loss-mitigation waterfall, researchers at the Urban Institute proposed. A similar policy during the pandemic did more good than harm, they found.
The market for MSRs is now divided between portfolios with loans originated prior to 2022 and portfolios with loans that have prevailing interest rates, prompting some shifts in practices among servicers and investors.
The ratings outlook for Fannie Mae, Freddie Mac and two of the FHLBanks have been upgraded from negative to stable, reflecting strong economic growth and heightened government support.