"Using third parties to circumvent this insurance feature creates uncertain financial risks for lenders and for Treasury Department’s ongoing financial support of the GSEs," said Edward DeMarco, president of the Housing Policy Council.
As long as it has at least 12 months of data, a single asset verification report will now be sufficient to validate a borrower's income, employment, assets, and positive rent payment and cash flow history.
Interest rates on GSE refis rose almost immediately after the adverse fee was announced and when FHFA removed the fee in July 2021, interest rates responded accordingly.
“Synchronizing bi-merge credit reporting with the implementation of the new credit score model requirements will reduce complexity for market participants,” said FHFA Director Sandra Thompson.
Mat Ishbia, chairman and CEO of United Wholesale Mortgage, suggested that competition from nonbanks is helping to push banks out of the mortgage market.
RSS