Top markets for affordable renovated housing inventory

Despite the rapidly deteriorating affordability, there is some hope for homebuyers in the form of renovated homes: properties that have been rehabbed into move-in ready condition after being purchased at auction.

HousingWire Magazine: December 2021/ January 2022

AS WE ENTER A NEW YEAR, let’s look at some of the events that we can look forward to in 2022. But what about what’s next for the housing industry?

Mortgage Tech Virtual Demo Day

Tune in to our live Virtual Demo Day on December 1st at 10am CT to experience demos from the most innovative tech companies in the Servicing, Audit and Post-Close space.

Logan Mohtashami on Omicron and pending home sales

In this episode of HousingWire Daily, Logan Mohtashami discusses how the new COVID variant, Omicron, will impact inflation and whether or not it will send mortgage rates lower.


FHFA formally ends mortgage volume discounts from Fannie Mae, Freddie Mac

Issues directive to "level the playing field"

Federal Housing Finance Agency Director Mark Calabria recently issued a formal directive to end guarantee fee discounts for high-volume lenders from Fannie Mae and Freddie Mac.

The FHFA explained that it is attempting to "level the playing field" for smaller lenders, and is making this a priority in housing finance reform.

“We trying to make sure Fannie and Freddie aren’t driving consolidation in the market, but instead they’re providing a level playing field, and that’s really something we’re focused on,” Calabria said Monday at a National Association of Federally Insured Credit Unions conference.

The FHFA explained that since the housing crisis in 2008, the agency has worked to maintain a level playing field for small- to mid-sized financial institutions.

“One of the things that really concerned me before the crisis was that it wasn’t unusual where the big guys like Countrywide would come in and they pay G-fees down here and you come in and pay G-fees up here,” Calabria said, referring to smaller lenders paying higher G-fees than larger lenders at certain points in the past.

But now, the director issued a formal directive to end volume discounts, which will be monitored by regular compliance reporting.

“To that end, FHFA, as conservator, has communicated to Fannie Mae and Freddie Mac that they will not provide volume discounts to larger market players,” an FHFA spokesperson told HousingWire. “Further, the instructions state that FHFA will monitor the enterprises’ compliance through regular reporting. This communication formalizes previous guidance set out in the Enterprises’ 2012 Conservatorship Scorecard.”

And the FHFA plans to ensure this level playing field is kept even after Fannie and Freddie are released from conservatorship. In its recent Housing Finance Reform plan, the Department of the Treasury recommended that volume-based pricing discounts or similar incentives should be prohibited.

“FHFA’s approach is based on this principle: same rate of return for the same risks regardless of size,” the FHFA spokesperson continued. “This supports equitable access for small lenders while appropriately allowing for guarantee fees to reflect the differences that may exist in the risk profiles among lenders of different size.”

Most Popular Articles

FHFA: Government to back mortgages up to $970,800 in 2022

The FHFA today announced the baseline conforming loan limit for 2022 will be $647,200, an increase of 18%. In high-cost areas, the new ceiling loan limit will be $970,800.

Nov 30, 2021 By

Latest Articles

Nonbanks quick to implement 2022 conforming loan limits

One day after the FHFA announcement, Homepoint, Guaranteed Rate and UWM announced that they have already implemented the 2022 conforming loan limits

Dec 02, 2021 By
3d rendering of a row of luxury townhouses along a street

Log In

Forgot Password?

Don't have an account? Please