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FANNIE MAE AND FREDDIE MAC JJAN.U- AFERBY. 22001188
“Although we are disappointed by the court’s order today, we remain con dent that we will ultimately prevail in reversing the illegal nationalization of Fannie and Freddie,” said Cooper & Kirk’s David Thompson, an attorney representing Fairholme and other investors. (Bloomberg Politics, Greg Stohr and Joe Light, 02/20/18)
The Trump administration’s budget proposes a 10 basis point increase in g-fees to generate $26 billion over a decade
This position is reiterated in the administration’s budget for FY2019, saying: “The Administration has publicly expressed its desire to work with members of Congress to facilitate a more sustainable housing nance system.” The budget calls for a 10 basis point increase in guarantee fees to 20 basis points from 2019 to 2021 and extend the 20 basis point fee through 2023, generating $26 billion over the 10 year budget window. (Ef cient, Effective, Accountable: An American Budget Analystical Perspectives, Of ce of Management and Budget, Fiscal Year 2019)
FHFA extends the comment period on alternatives to FICO until March 30th
In December, the Housing Finance Reform Agency requested public comment on whether Fannie Mae and Freddie Mac should begin using alternative credit scoring models beyond the traditional FICO scoring currently being used and raised the possibility to switching to FICO 9, VantageScore 3.0, or some combination thereof. On February 2, FHFA extended the deadline to accept comments from February 20th to March 30th. (HousingWire, Ben Lane, 02/02/18)
The future of lending can be found in FinTech
In a study of Fintech mortgage lenders, the New York Fed concluded that lenders that exclusively use online applications approve loans quicker, experience fewer defaults, encourage more re nancing and respond to demand shifts better than brick-and-mortar competitors, according to a new report.
The New York Fed wrote:
This paper presents new evidence on how technology is reshaping the U.S. mortgage market by studying the vanguard of technology-based lenders. Our results show that FinTech lenders offer a faster origination process that is less sensitive to uctuations in demand than traditional lenders. These improvements are associated with an increase in
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