In defending the bright-line test, the Mortgage Bankers Association has issued a written rebuttal to recent claims by opponents, including Freddie Mac, that the test would force Fannie Mae and Freddie to shut down their automated underwriting systems."In a recent paper distributed on Capitol Hill without attribution, Freddie Mac asserts that the bright line would 'preclude' the use of GSE AU systems. It would not," the MBA paper says. "It would merely introduce competition and transparency into the loan underwriting technology market." The MBA's goal is to promote competition by getting the two government-sponsored enterprises to license and accept loans from AU systems that are owned and operated by lenders and vendors, according to the MBA's top lobbyist, Kurt Pfotenhauer. The MBA points out in the paper that Fannie will accept loans underwritten by Freddie's Loan Prospector and Freddie will buy loans underwritten by Fannie's Desktop Underwriter. However, the two GSEs do not accept loans from other AU systems on the same terms.
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Doxo plans to fight the FTC complaint, which focuses broadly on consumer finance, but there are signs of confusion about the company's role in mortgages too.
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Members of the LGBTQ community were most likely to have experienced housing bias, according to a Zillow survey, which also found many people don't recognize how fair lending laws could help.
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Senior executives making over $151,000 would still be subject to such clauses should the rule go into effect this year.
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Christopher J. Gallo and his aide, Mehmet A. Elmas, allegedly withheld information in mortgage applications, hiding that borrowers were purchasing second home properties.
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Mortgage rates rose 7 basis points this week, Freddie Mac said, and more increases are likely following a weaker than expected gross domestic product report.
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Independent mortgage bankers lost the most money ever on every loan originated last year due to higher rates and lower volumes, an industry trade group said.
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