GSEs

Today there are 1 million fewer Americans in forbearance than there were at the peak in May, according to Black Knight.

But federal elections and the pandemic make projections on the sustainability of industry profitability especially tricky.

Following its deadline for written comments on the topic last month, the Federal Housing Finance Agency is scheduling events that will focus on two key themes emerging in responses.

Neither side opted to invoke their Aug. 31 termination rights and the deal is set to close by the end of September.

Arch's second CRT transaction this year to obtain indemnity reinsurance for mortgage-insurance premiums comes at a time it is also experiencing rising 60-plus-day delinquencies on its outstanding securitized pools.

Also: NMN analyzes political donations from the industry, foreclosure and eviction ban extended to year's end.

Refinancing has been one of the bright spots in a difficult year for lending, and the industry has concerns that a fee to be imposed by Fannie Mae and Freddie Mac could slow down the business.

As the end of the first six-month forbearance period arrives, the impact of the new cap is coming into focus.

Many mortgage companies are hoping to operate remotely through year-end and are asking regulators for relief to that end.

Both the Federal Housing Finance Agency and Federal Housing Administration are extending relief for homeowners and renters due to the pandemic crisis.

The mortgage giants were criticized earlier this month for a plan to charge an "adverse market fee" to protect against losses resulting from the pandemic.

If Trump is reelected, his administration would likely move forward with privatizing Fannie Mae and Freddie Mac and relaxing key rules, while a Joe Biden presidency would likely try to expand homeownership access and borrower protections.

Meanwhile, July saw a record surge in existing-home sales, while mortgages in serious delinquency were on the rise

There were questions about the GSEs' use of structured credit risk transfers in the single-family market given an earlier pandemic-related market disruption.

Lenders initially won't be able to pass on the cost of the Federal Housing Finance Agency's "adverse market fee" to borrowers whose rates on GSE-backed mortgages and refinances are already locked in.

The higher charge on mortgages refinanced through Fannie Mae and Freddie Mac is supposed to cushion against a crisis but could contribute to one as the fees are passed on to struggling consumers.

Recent changes to housing policy and uncertainty regarding the coronavirus could slow that growth.

As more borrowers exit their plans, fewer than 4 million loans sit in forbearance, according to Black Knight.

The FHFA director’s move this week to impose an “adverse market fee” of 0.5% on most refinanced mortgages will shift billions out of the hands of American consumers and into the hands of Fannie Mae and Freddie Mac — and their private shareholders.

The new “adverse market fee” for refinanced mortgages resembles steps the companies took to combat the 2008 mortgage crisis. But critics charge it isn’t necessary and will hurt borrowers’ ability to tap into low rates.