A "bright line" test contained in a Senate bill on government-sponsored enterprises is drawing more opposition from housing-related associations because of concerns that it would "undermine" Fannie Mae's and Freddie Mac's automated underwriting systems."The bright line provision would undermine the state-of-the-art mortgage underwriting technology that has contributed significantly to the vibrancy, competitiveness and risk-management that are vital to the contemporary housing finance system," says a letter written jointly by six associations and sent to Senate Banking Committee leaders. The bright-line test, which is contained in a GSE bill (S.190) introduced by Sen. Chuck Hagel, R-Neb., is designed to clarify what activities are permissible under Fannie's and Freddie's government charters. The Independent Community Bankers of America, the National Alliance of Independent Mortgage Bankers, the National Association of Home Builders, the National Association of Realtors, and the National Community Reinvestment Coalition signed the letter.
-
The new Financial Stability Oversight Council report also recommends an expanded Ginnie Mae PTAP facility and an industry-funded liquidity resource.
2h ago -
The publicly traded title holding companies all had stronger earnings as the mortgage market improved from one year prior.
3h ago -
One in every 37 residential properties nationwide had a loan-to-value ratio of 125% or greater to begin the year, according to a new report.
4h ago -
There's temporary leeway on formal compliance with replacement-cost value requirements in order to sort out insurer concerns with a recent re-emphasis on them.
4h ago -
Max Levchin, CEO of the buy now/pay later lender, said recent tests show young adults prefer interacting with intelligent chatbots over phone-based agents, but the company doesn't foresee major cost savings from generative AI for a few more years.
6h ago -
Test your knowledge of the biggest mortgage headlines of the week. No. 2 pencil not required!
May 10