Fannie Mae

Fannie Mae and Freddie Mac can likely withstand potential credit losses twice as high as last year's in the latest scenario, but they are at more risk of slipping into the red.

The move was "not being driven by fundamental credit, capital or liquidity deterioration at the firms," the firm said.

But the government-sponsored enterprise is still concerned about the fiscal health of its lender counterparties as volumes are down considerably from last year.

The nearly 8% growth on a seasonally adjusted annualized basis is well above the historical average, according to the government-sponsored enterprise.

A vast majority of the pool, 86.35%, consists of primary homes. Investment properties and secondary homes, meanwhile, account for 11.29% and 2.36% of the collateral.

Researchers at the government-sponsored enterprise also maintained their outlook for a modest recession but moved anticipated onset to the fourth quarter this year.

Fee hikes at the government-sponsored enterprises are one remedy, the government-sponsored enterprise's regulator noted in its annual report to Congress.

The government-sponsored enterprise's chief executive managing the issue is looking at how things like roof pitch can mitigate the impact of natural disasters on homes.

The government-sponsored enterprise plans to further decentralize security services, which will enable risk management across the business, said Chita Elango, senior director of application security.

The government-sponsored enterprise has been using a predictive Jupiter Intelligence score suite to review its more than 17 million residential mortgage-related assets.

But on a cumulative basis since 2013, the unpaid principal balance of reference pools is higher at Freddie Mac, according to the Federal Housing Finance Agency.

Single-family officials at an industry conference also quantified some of the progress they're making with alternative credit data, and noted that digital validations can help reduce defects.

The Enterprise Regulatory Capital Framework is going to dramatically transform Fannie Mae and Freddie Mac pricing in ways the industry hasn't begun to contemplate, writes a former senior policy analyst at the FHFA.

April interest rate drops provided momentum for an upturn, but more consumers also thought the outlook for buying and selling was headed in a favorable direction, according to Fannie Mae.

Fannie Mae researchers found housing costs decelerating for the fourth straight quarter, but limited inventory may be driving hopeful buyers to look for opportunities in the new-construction market.

The share of consumers worried about potential job loss spiked to its highest point in 12 months, leading to a downturn in outlook, according to Fannie Mae.

However, while the "market share" analysis is a useful check on the reasonableness of benchmark levels, it is impacted by any errors in the HMDA data, notes a former principal economist at the Federal Housing Finance Agency,

Despite a likely recession, researchers at the government-sponsored enterprise revised volume forecasts upward for both 2023 and 2024, while originators also entered the year expecting their business to improve.

The government-sponsored enterprise expects a "moderate recession" in the first half of 2023.

Freddie Mac previously announced a similar change set to go into effect for mortgages with settlement dates on or after March 7.