GSEs

In the wake of the Surfside condo collapse, Freddie Mac and Fannie Mae instituted stricter rules regarding the soundness of this crucial form of housing stock as it ages. In response to complaints about a lack of clarity on buildings deemed unfit for financing, the GSE unveiled plans to improve transparency for both homeowners associations and lenders. 

A new "Social MBS" label will be applied to eligible single-family collateral from both government-sponsored enterprises based on a new mission index score.

The financial services executive also previously served in leadership at Morgan Stanley and Carver Federal Savings Bank.

The agency is decreasing the dollar amount for the second consecutive year, maintaining the percentage quota for mission-related loans and adding a new exemption.

Like its competitor Fannie Mae, the enterprise's earnings were higher year-over-year but recorded a quarterly decline in part due to a legacy shareholder lawsuit.

The government-sponsored enterprise's net income was balanced by climbing interest rates, which drove a large increase in fair value gains.

While on the positive side, Fannie Mae CEO Priscilla Almodovar said the loan defect rate has dropped 75%, she and Freddie Mac President Michael Hutchins noted that they're closely examining disruptive servicing transfers and standards for multifamily properties.

An analysis of previously released S&P data suggests the Federal Housing Finance Agency's initiative would have mixed impacts on the price of loans and eligibility that vary by individual.

Numbers the Federal Housing Finance Agency just reported for 2022 were the third lowest since the program began, and this year's probably won't be high either.

The mortgages are part of a program that received congressional scrutiny earlier this year.

The government-sponsored enterprises have consistently earmarked some distressed loans for community, nonprofit and minority investors. Certain Democrats want more.

The post-close review timeline gets shorter and new pre-funding checks become required on Sept. 1.

Some respondents reprised calls for a return to more flexible capital rules and portfolio-level cross-subsidization. Others see danger in such a move.

Removing such debt information from consumer reports generated an uptick in home loan inquiries in one study and other industries have found advanced score use pays off.

Industry executives coming off a tough year are wondering what the transition will cost and how many borrowers it'll bring in.

This first step in updating borrower assessments was seen as the easiest and could reduce costs, but stakeholders fear change that reduces data inputs.

Their links to the Treasury have been considered a source of strength and still are, but less so, according to one rating agency. Others disagree.

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 association thinks this could simplify and manage the costs of two new pending credit requirements by allowing companies to add the one that's been through a price hike second.