Risk management

The unique approach Fannie Mae and Freddie Mac are each taking with their credit-risk transfer products is quickly becoming a key point of differentiation that's rekindling competition between the government-sponsored enterprises.

Fannie Mae and Freddie Mac transferred a substantial amount of credit risk to the private sector through both single-family and multifamily market transactions in the first half of the year, with activity expected to rise in 2019, according to the Federal Housing Finance Agency.

When the mortgage giant will be released from government control is anyone's guess, but the company's third-quarter report shows signs of an easier transition.

Home price appreciation is continuing to decelerate due to affordability concerns that are unlikely to let up even though recent market developments have put some downward pressure on mortgage rates.

Larger mortgage companies are paying less than other creditors when fraud occurs, but the expense is still detracting enough from their revenue to cause concern.

The Federal Housing Administration is making it easier for reverse mortgage servicers to submit insurance claims by expanding the types of supporting documentation it will accept on defaulted loans.

Home price index swaps, treated as a second lien on a property, will be used to reduce the default risk associated with low down payment mortgages, one of the program's creators said.

Mortgage application defect risk is down from a year ago, but Hurricane Florence will likely tear through results in affected areas in the coming months.

A decade after the credit crisis, investors are returning to where it all began. The mortgage sector, blamed in large part for the near-collapse of the global financial system, is now seen by many as a high-quality market forged by fire.

NMI Holdings is laying the groundwork for President Claudia Merkle to replace CEO Bradley Shuster next year.