Finance

Fannie Mae and Freddie Mac asked originators to resubmit applications that contained errors and adjust sold mortgage information due to incorrect life-of-loan representations and warranties.

The credit card issuer Synchrony Financial recently used FICO’s top competitor in a $1 billion deal. The choice is significant for VantageScore, but FICO remains the dominant credit score in the securitization market, according to analysts.

The inability to include both types together in standard loan pools has been one of the hurdles to the adoption of digital collateral.

However, in line with promises housing agencies have made to be cautious in their expansion of underwriting, new rules around financing for properties with accessory dwelling units still have several guardrails.

Fannie Mae and Freddie Mac will need to submit annual capital plans to the agency. The move follows the introduction of new public disclosure requirements through a separate action last week.

The effects on nonbanks will depend on the mix between their production and servicing operations, Fitch Ratings said.

Dynex Capital CEO Byron Boston sees the slow process of unwinding the Fed’s balance sheet, which officially began Wednesday, as an opportunity for his company.

The Federal Reserve is about to start shrinking its $8.9 trillion balance sheet, deploying a second tool along side higher interest rates to curb inflation, though officials don’t know just how effective it will be.

Privately securitized mortgages made by these institutions have already exceeded 2021 levels, however some of the collateral lacks income verification, according to a new KBRA report.

Mortgage companies selling loans to the government-sponsored enterprise will be able to use the information for one type of employment check as well as to validate income and assets.