In January, the GSEs took in a significant volume of mortgages with balances greater than the baseline conforming loan limit for 2021. Note: A number of lenders had given themselves a head start on 2022 loan limits.
Non-agency mortgages for investment properties are increasing thanks to volatility in GSE pricing and lenient underwriting standards. Volume could take a hit as interest rates increase.
Once a “flexibility” intended to help lenders deal with the pandemic, the desktop appraisal is about to become a permanent fixture of Freddie’s Loan Advisor and Fannie’s Desktop Underwriter.
The Biden administration and Congress need to address some major risks to the housing-finance system, according to the Government Accountability Office. The administration is still developing plans and there’s little urgency in Congress.
The mortgage industry has resigned itself to no administrative end to the Fannie and Freddie conservatorships. It’s still unclear what happens to the GSEs’ capital requirements.
Loan-level price adjustments charged by the government-sponsored enterprises for loans in high-cost areas and for second-home mortgages are set to increase this spring.