Most of the drop-off in production hasn’t been because borrowers didn’t want to pay high interest rates, an analysis from FHFA showed. It’s because high interest rates have spiked DTI ratios, disqualifying borrowers for a mortgage.
Some 62% of mortgage fraud incidents involve the misrepresentation of income and employment, while 33% involve the understating of borrower liabilities, a Fannie survey showed.
Most GSE sellers increased production in the second quarter, though first-half deliveries were still off 60.9% from a year ago. (Includes two data charts.)
The inclusion of sales data on comparable properties and statistics on the racial and ethnic composition of neighborhoods should allow researchers to better identify incidents of appraisal bias.
All House Republicans and 14 House Democrats voted to undo FHFA’s revision of GSE loan-level pricing adjustments. The bill would also require future changes to the grids to follow risk-based pricing.
All but one of the top 10 Fannie/Freddie lenders increased deliveries to the GSEs last month. Overall, the two government-sponsored enterprises securitized 22.3% more loans in May than in April.
The only lender type that saw an increase in GSE-related production in the first quarter was housing finance agencies. Meanwhile, deliveries to the GSEs ticked up in April. (Includes two data charts.)
RSS