The latest economic and policy trends facing mortgage servicers

Join this webinar for an in-depth roundtable discussion on economic and policy trends impacting servicers as well as a look ahead at strategies servicers should employ in the next year.

2021 RealTrends Brokerage Compensation Report

For the study, RealTrends surveyed all the firms on the 2021 RealTrends 500 and Nation’s Best rankings, asking for annual compensation data for the 2020 calendar year.

A real estate professor weighs in on the future of MLSs

According to research done by Sonia Gilbukh, a real estate professor at Baruch College, there are some reasons to be concerned about the current number of real estate agents and the future of MLSs.

Lenders, it’s time to consider offering non-QM products

The non-QM market is making a comeback following a pause in 2020. As lenders rush to implement, Angel Oak is helping them adopt these new lending products.

Mortgage

Fannie Mae widens credit box for failed homeowners

Updates minimum wait periods

Good news for failed borrowers who were negatively impacted during the financial crisis — Fannie Mae updated the policy related to the minimum waiting periods following a preforeclosure sale or deed-in-lieu of foreclosure, making it easier for distressed borrowers to jump back into the market sooner, according to a new fact sheet released by Fannie.

In order to be eligible for a mortgage loan, Fannie requires borrowers to demonstrate that they have reestablished credit following a significant derogatory credit event, such as a foreclosure, bankruptcy, preforeclosure sale or deed-in-lieu. 

Previously, the standard wait period was two years with a maximum 80% LTV and four years with a maximum 90% LTV, with standard eligibility after seven years. In extenuating circumstances, borrowers could wait only two years with a maximum 90% LTV.

Now, for all loans with applications dates on or after Aug. 16, the standard waiting period was four years, and only two years with extenuating circumstances.

While the new revisions get rid of the earlier options and LTV requirements, it is sooner than the previous standard wait of seven years.

According to Fannie Mae, extenuating circumstances are nonrecurring events that are beyond the borrower’s control that result in a sudden, significant and prolonged reduction in income or a catastrophic increase in financial obligations.   

(Source: Fannie Mae, click for larger image)

Borrowers

This new rule comes during a time that demand for housing is down due to various reasons. “A ding on the credit score, a lost down payment, there are multiple reasons we think demand is down,” Director of the Federal Housing Finance Agency Mel Watt said in an exclusive interview with HousingWire. “It’s a lack of confidence that housing has the same place in the pecking order of the American dream.”

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