Economy

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.

A potential pause in the cycle by the Federal Open Market Committee is welcomed by housing industry observers, but inflation and inventory hinder activity.

Changes to loan-level price adjustments are perfectly consistent with the FHA's mission and with the safety and soundness of Fannie Mae and Freddie Mac.

The government-sponsored enterprise improved slightly upon the previous quarter's numbers, but contraction in lending remains a risk.

Lenders would be required to assess a borrower's ability to repay such a loan.

The California Reinvestment Coalition, the group behind the assessment, is calling for increased nonbank oversight.

The legislative proposals backed by Republican members of congress seek to undo the latest cross-subsidized adjustments to loan fees that two large government-related mortgage investors charge.

The loans, which are known as advances, jumped 28% at the end of the first quarter from the close of 2022, the FHLB Office of Finance said on Friday.

The average profit margin on the sale of median-priced single-family homes and condos fell to 44% last quarter, from a peak of 56% in the second quarter of 2022, according to data published Thursday by Attom, a real estate analytics firm.

While Freddie Mac reported the 30-year fixed rate loan increased, other data providers show that product's pricing dropped from seven days earlier.

Heightened worries about the strength of consumers and the global economy have been put on hold — at least for now — after some of the world's best known companies delivered a slew of better-than expected numbers.

Last year was a tough year for the mortgage industry, but the best of the best managed to keep their volumes high.

Her statement calls out "a fundamental misunderstanding about the fees" following concerns expressed by two congressmen and others about their impacts.