Greater consumer access to credit could help mortgage bankers replenish originations eroded by higher rates, but they are reluctant to depart from the status quo to provide it.
Access to mortgage credit inched up in June, as competition for jumbo loans resulted in looser underwriting, but government lending standards got more restrictive, the Mortgage Bankers Association said.
Healthier economic conditions, more effective underwriting methods and recovering hurricane-impacted states helped drive delinquency and foreclosure rates to their lowest level in over 10 years, according to CoreLogic.
A Fannie Mae test to handle the private mortgage insurance process for lenders may raise concerns that it's going outside the scope of its secondary market mission. But the effort reflects its mandate to explore new credit-risk transfer alternatives, a company executive said.
Fannie Mae and Freddie Mac enjoy considerable advantages because of their lower cost of capital and significant government subsidies. But with some conforming loans, the private market is finding a way to compete.
Fannie Mae and Freddie Mac are making condominium loans eligible for automated appraisal waivers that could reduce mortgage borrowers' fees and shorten closing times for lenders.
