True Stories: Hybrid, eNote and RON Implementation

Join expert panelists that will discuss the status of federal legislation, trends in digital adoption and how best to prepare your organization for the next generation of lending processes.

Spruce’s Patrick Burns on innovation in title technology

In the season finale of Housing News season 5, Spruce CEO discusses heightened investor interest in title tech, innovation and fintech adoption.

Top CFPB official “hates” QM rules, jeopardizing safe harbor

A top CFPB official in charge of the rule-making process has heavily criticized the agency's own qualifying mortgage rule, jeopardizing safe harbor.

Don’t sleep on non-QM products

Now is the perfect time for originators to consider expanding to non-QM products – to grow business, diversify their offerings and to ensure an opportunity to better serve their customers.

MortgagePolitics & Money

FHFA will continue to buy loans in forbearance through Dec. 31

Recent extension now matches Fannie's and Freddie's foreclosure and eviction moratorium

The Federal Housing Finance Agency announced on Thursday that Fannie Mae and Freddie Mac will continue to buy qualified loans in forbearance, extending the temporary policy until Dec. 31, 2020 in order to continue its support of homeowners and mortgage lenders.

Originally announced in April, the enterprises issued the temporary policy to allow certain single-family mortgages in forbearance to be delivered to the GSEs.

The initial temporary policy was set to expire May 31, 2020. However, the FHFA has made several subsequent extensions as it monitors the impact of the coronavirus.

“Eligible loans will continue to be priced to mitigate the heightened risk of loss to the Enterprises from said loans. These prudential measures also ensure fulfillment of the Enterprises’ charter requirements to only purchase loans that meet the purchase standards imposed by private, institutional mortgage investors,” the FHFA said in its release.

One week prior to FHFA’s initial temporary policy announcement, the agency teamed up with the Consumer Financial Protection Bureau to launch the Borrower Protection Program – an initiative that allows the two to share servicing information in an effort to protect borrowers.

ATP scoring paves a new path for financial inclusion

FormFree’s Passport, an alternative to traditional credit scoring, analyzes a borrower’s whole financial situation, including assets, employment and income.

Presented by: FormFree

Under the program, the CFPB provides complaint information and analytical tools to FHFA via a secure electronic interface. In turn, the FHFA provides the bureau information about forbearances, modifications and other loss mitigation initiatives undertaken by the enterprises.

Along with the most recent extension, the FHFA said it will continue sharing aggregated data with the CFPB on loans that enter forbearance before delivery to the enterprises. According to the release, the data sharing “will allow FHFA to fulfill its obligation under the so-called ‘Qualified Mortgage Patch’ to ensure that loans sold to the enterprises are complying with the intent of Dodd-Frank’s ability to repay provisions.”

Mortgage Bankers Association’s most recent forbearance report revealed the GSEs rate of forbearance is down to 3.72% – the 20th consecutive week the enterprises’ rate has fallen. However, 3 million American homeowners are still in forbearance plans with an approximate 25.02% in the initial stage and 73.14% in some form of extension.

In a continued bid for stability on Aug. 27, the FHFA also extended its moratorium on foreclosures and evictions for borrowers with mortgages backed by Fannie Mae and Freddie Mac until Dec. 31.

Leave a comment

Most Popular Articles

Volume-hungry mortgage lenders loosen credit standards

Mortgage credit availability loosened up in April by 2.2%, per the MBA. The drivers were in conventional mortgages and GSE programs for ARMs and high-balance loans.

May 11, 2021 By

Latest Articles

Genworth mortgage insurance arm IPO on ice

Genworth Financial said it will delay the initial public offering of its recently rebranded mortgage insurance arm, Enact Holdings.

May 13, 2021 By
3d rendering of a row of luxury townhouses along a street

Log In

Forgot Password?

Don't have an account? Please