Fannie Mae

Earnings reports out this week beat pessimistic expectations, but strained coronavirus relief negotiations in Congress cloud the outlook for what's ahead.

With infections resurging, consumer confidence in the housing market hit a snag in July, but sellers are feeling better about their prospects, according to Fannie Mae.

The agency said property owners can enter into new or modified forbearance plans if they have a hardship due to the coronavirus, but the landlords must agree not to kick out renters solely for nonpayment of rent.

For years, there has been an expectation that markets and governments would figure out how to provide enough incentives for homeowners to make energy efficiency upgrades and environmental improvements. It hasn't happened yet.

Rates are forecasted to remain at the current low levels for the rest of 2020, driving steady refinance volume.

The mortgage servicing rights package going up for bid adds to signs that the market for large offerings is becoming more active.

The number of loans going into coronavirus-related forbearance fell for the seventh straight week, but the Mortgage Bankers Association predicts the rate will increase if the number of coronavirus cases continues to rise.

The mortgage giants will have to meet benchmarks for covering cash flow needs during stressed periods. The FHFA views the requirements as a prerequisite to the companies exiting conservatorship.

The government-sponsored enterprise reported net earnings of $2.55 billion, up from $461 million in the first quarter.

The key word is "temporary" with the FHA's quality control waiver expiring and not likely to be renewed.