Economy

The beleaguered bank said it is selling 74 loans totaling about $2.6 billion to a subsidiary of Kennedy-Wilson Holdings. The move is part of a plan to pursue strategic asset sales, trim expenses and shore up its balance sheet.

Single-family officials at an industry conference also quantified some of the progress they're making with alternative credit data, and noted that digital validations can help reduce defects.

During her opening remarks before lawmakers Tuesday, the head of the Federal Housing Finance Agency reiterated that borrowers with strong credit profiles are not being penalized to benefit those with poorer scores.

The Enterprise Regulatory Capital Framework is going to dramatically transform Fannie Mae and Freddie Mac pricing in ways the industry hasn't begun to contemplate, writes a former senior policy analyst at the FHFA.

But the country is still likely heading towards a recession and it could be deeper than previously thought, Mortgage Bankers Association Chief Economist Mike Fratantoni said.

The government-sponsored enterprise only tweaked the two-year mortgage origination forecast, with a $6 billion reduction for 2023, but an increase of $7 billion for 2024.

Jobs numbers, inflation data and the continued debate over raising the debt ceiling are factors applying upward pressure.

The latest forecast calls for $375 billion of lending on properties with five or more units, with total commercial originations of $654 billion.

The latest change continues the sideways pattern of recent weeks, a much better situation than last year's rapid increases, Freddie Mac said.

The popular notion that any downturn this year will be mild by historical standards as firms seek to "hoard" labor is about to be put to the test.