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In actuality, the law establishes the procedure for setting the maximum limits; in principle, the director could set the limits below these maximum levels, argues a former principal economist for the Federal Housing Finance Agency.

On a combined basis, the GSEs performed better under this year's scenario than they did in 2021, but the Federal Housing Finance Agency said changes were still needed.

After falling earlier in the month on expectations of less aggressive monetary policy, inflation concerns early in the week drove averages higher.

The lending and servicing giant is also amping up cost-saving efforts with more layoffs after reporting a net loss of $223.8 million in the second quarter.

Economists disagree on whether the latest numbers will mean the Fed will increase rates by 50 or 75 basis points.

But volumes are still at least 80% lower from a year ago, while mortgage applications overall came in flat.

Loan availability also took its steepest monthly dive since the first months of the coronavirus pandemic, with jumbo products falling off by more than 13%, according to the Mortgage Bankers Association.

While a growing share of consumers expect housing costs and interest rates to decrease over the coming year, uncertainty is also leading some to see it as an inopportune time for both purchasing and selling, Fannie Mae reported.

The way the Federal Housing Administration is funded and constrained by laws, rules and other operational limitations is analogous to the FHA living in the horse-and-buggy era in an age when we are starting to see driverless cars, writes the executive director of the Community Home Lenders Association.

More cost reduction is on the way in the third quarter, but management says it will not layoff staffers, despite having some excess capacity.