Fannie Mae

After the State of the Union speech Tuesday night, members of the House and Senate banking committees said they were intent on trying to address the biggest unresolved piece of financial services policy: housing finance reform.

Recent developments give the impression that the administration and lawmakers are in direct competition, but the ultimate framework may rely on coordination from both branches of government.

A significant percentage of consumers are willing to turn to technology companies for their financial needs, including applying for a mortgage, although they have trust issues with them, a Fannie Mae report said.

Absent some policy change, nearly a third of the loans backed by Fannie Mae and Freddie Mac could be in violation of the Consumer Financial Protection Bureau's Qualified Mortgage rule in two years.

Despite the release of Senate Banking Committee Chairman Mike Crapo's outline of a government-sponsored enterprise reform plan, most policy changes will likely come from the White House, and may even materialize this year, said Keefe, Bruyette & Woods.

As policymakers consider administrative reforms to Fannie and Freddie, they must address the problem of capital arbitrage to avoid overleveraging the mortgage system.

Just as the Trump administration appears focused on releasing a framework without Congress, the Senate Banking Committee has re-entered the policy fray with a new proposal.

Nonbank mortgage companies cut payrolls by 3,100 full-time employees in December, bringing the level of the hiring in the industry to its lowest point in more than two years.

The Senate Banking Committee chairman released an outline for overhauling the U.S. housing finance system more than 10 years after the government put Fannie Mae and Freddie Mac into conservatorship.

Affordability remains a challenge for homebuyers, but barely any mortgage lenders attribute last year's sluggish home sales to insufficient consumer income or lack of loan products for new buyers, according to Fannie Mae.

The agency's acting director said he welcomes lawmakers' “insight and perspective” on how to end the conservatorships of Fannie Mae and Freddie Mac.

A White House spokeswoman said the administration wants to work with Congress on a housing finance reform plan, providing evidence that changes might not be imminent.

Fixing the housing finance system is "the last piece of unaddressed business from the financial crisis," according to a summary of to-do items released by the Banking Committee's chairman.

As 30-year fixed-rate mortgages rose 30 basis points year-over-year, non-QM originations are estimated to grow 400% in 2019.

The acting head of the Federal Housing Finance Agency has promised substantial changes for Fannie Mae and Freddie Mac, but the exact mechanics and timeline of an administration plan are still a mystery.

Recent comments attributed to the acting head of the Federal Housing Finance Agency (who is also comptroller of the currency) have stoked speculation about the Trump administration’s housing finance policy.

While Fannie Mae's multifamily origination volume took a step back from 2017's record high of $67 billion, its delegated underwriting and servicing program provided $65 billion in financing in 2018, led by Wells Fargo.

Rising mortgage rates will only be "a mild deterrent" to home purchase activity during 2019 as other indicators like price and demand will cancel that out, according to Standard & Poor's.

Redwood Trust has exercised its option to expand its minority stake in 5 Arches to 100%, increasing Redwood's exposure to loans used for house flipping and other types of residential investment.

Timothy Mayopoulos is back in the mortgage industry, becoming the new president of the digital mortgage technology developer Blend, months after leaving his post as Fannie Mae’s CEO.