Fannie Mae, Freddie Mac shifts and lender impact
Garth Graham Stratmor MBA

Home loan players are diverting technology budgets to cover back-office operations, after big spending in a downcycle, counter to historical patterns.

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Decreased homeowner equity corresponds to recent declining prices reported by leading housing researchers, but tappable amounts still sit near record highs.

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    Fannie Mae recently released its Collateral Underwriter automated risk assessment tool, which evaluates the risk associated with appraisals. It does not accept or reject appraisals, nor does it provide lenders with an estimate of a property's value.

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    Before the Dodd Frank Act went into effect in 2010, the residential mortgage market was in an entirely different state — particularly in regards to servicing. Several large servicers dominated the market, but ultimately shed most of their servicing assets, creating a substantially large segment of midsize servicers.

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    With conservatorship of Fannie Mae and Freddie Mac well into its seventh year, the government has now had control of the housing agencies longer than 47 members of the Senate have been office.

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Maintenance of key mortgage tools requires a nuanced strategy as the full cost will stretch across the tech stack, but inaction could be worse, experts say.
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Depositories, credit unions and nonbank lenders have different needs from their loan origination software, and smaller lenders are more agile customers.