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.

UWM has a plan to win a war of mortgage attrition

UWM's margins will fall all the way down to 75 to 110 bps. Mat Ishbia says it's the perfect environment to prove that his mortgage firm is truly elite.

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.

Politics & Money

GSE risk-fee rush, then delay, reveals election pressure

“Calabria sees the writing on the wall,” says Beacon Policy Advisors’ Myrow

The last two times Fannie Mae and Freddie Mac instituted an adverse-market fee to compensate for a riskier lending environment, during the run-up to the financial crisis more than a dozen years ago, lenders got plenty of warning.

The announcements came more than two months before the implementation dates, giving mortgage brokers and loan officers lots of time to adjust their pricing. Back then, the first fee was a quarter of a percentage point, and a few months later it was doubled as the economic threat became clearer.

This time, the initial announcement gave lenders less than two weeks. That wasn’t enough time to change the pricing for loans that were already locked, meaning some lenders would be paying the fee themselves instead of passing it on to consumers, resulting in millions of dollars in unexpected costs.

Then, on Tuesday, a second announcement came: The Federal Housing Finance Agency said it was postponing the implementation of the fee to Dec. 1. Some lenders will have to reverse the extra cost out of deals that aren’t already locked. For some borrowers, it’s just too late. The average cost for consumers is $1,400, according to the Mortgage Bankers Association.

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