GSEs

The FHFA and FHA both announced for the second time that they were delaying the freeze to protect borrowers and renters during the coronavirus pandemic.

The Federal Housing Finance Agency was supposed to finalize its original proposal this month, but will redraft it because it was drawn up before the coronavirus emerged as a concern.

As they prepare to exit government conservatorship, Fannie Mae and Freddie Mac have enlisted the investment banks to help them boost capital and evaluate market opportunities.

The agency flagged faulty risk management and other issues at the Federal Home Loan Bank of Des Moines and Federal Home Loan Bank of San Francisco in exams conducted last year.

The coronavirus pandemic brought more attention to the affordable housing issue and illuminated already vulnerable, low-income populations.

The measures extended by the Federal Housing Finance Agency include alternative methods used for certain appraisals and for verification of employment.

The expected rise in refinance volume overrides pessimism about purchase activity for their businesses.

The Federal Housing Administration's move to insure loans with forbearance could help support homeownership opportunities constrained by the coronavirus if one change was made to it, trade groups said.

The coronavirus market disruption actually caused the company's execs to speed up its return.

Looming economic uncertainties forced mortgage lenders to tighten underwriting standards in May.

The FHFA’s proposal is intended to strengthen Fannie Mae and Freddie Mac, but many experts warn that it could boost guarantee fees for lenders that they say may be passed on to borrowers.

About 9% of government-insured loans in forbearance have low equity, which could hamper post-forbearance servicing.

But there was an increase in private-label mortgages in forbearance.

One criticism of the CARES Act is that it provides relief only to borrowers with government-backed loans. Bills in New York and California would cover the remaining 30% of homeowners.

Self-service portals fielded at least half of coronavirus-related forbearance-plan requests and made it possible to handle an influx at a challenging time, but the GSEs recommend circling back to borrowers.

The new FHFA rule sets a percentage-based threshold to measure compliance, rather than Home Mortgage Disclosure Act data.

The FHFA looks to shed light on the amount of funds Fannie and Freddie will need to hold for their risk-sharing deals.

The firm also predicts that the coronavirus pandemic will delay the GSEs' release from government control.

With no way of knowing just how many borrowers will need the mods after the coronavirus forbearance period ends, lenders are deploying artificial intelligence and servicing protocols to tame the ferocious piles of paperwork awaiting them.

The company's pricing of its secondary stock option partially alleviated worries about the need to obtain new funds and the risk of dilution for existing shareholders.