Capital markets

Interest rate increases and economic concerns led the government entity to lower the required amount from $1 million to $250,000.

The majority of borrowers cite a national emergency declaration, but the share that do has been dropping as concerns about income, debt and unemployment creep up.

The company had asked that the case be dismissed given its similarity to previously settled claims. It's weighing an appeal.

The government-sponsored enterprise expects a "moderate recession" in the first half of 2023.

Executives at the company said building special-servicing capacity will help the company brace itself for a potential change in the credit cycle.

The company, which recorded positive comprehensive income based on unrealized RMBS gains, sees potential buying opportunities in bulk mortgage-servicing rights amid a wave of sales by Wells Fargo and others.

Adding pricing considerations tied to debt-to-income ratios, which frequently fluctuate, are destined to create problems with borrowers and internal operations, the Mortgage Bankers Association wrote.

Freddie Mac previously announced a similar change set to go into effect for mortgages with settlement dates on or after March 7.

Various affiliated companies participated in the creation of the transaction, including its publicly traded REIT, which owned a significant portion of the mortgages.

Average scores remain unchanged but signs of payment stress keep emerging, with Fannie Mae's serious delinquency rate up for the first time since August 2020.