Mortgage Roundup (4/12/21) – GSEs, Credit & Security

Good morning! Today is Monday, April 12. The White House will convene a summit to address the critical supply crunch that is slowing U.S. automobile manufacturing and threatens other sectors, including national security. More colleges say they will require students to be vaccinated before starting classes. Southern states were rocked by storms Sunday night, causing damage and shutting down Disney World. 

And in mortgage and housing news …

GSE PATCH: In lender letters issued this week, Fannie Mae and Freddie Mac announced that any loans purchased by the GSEs after July 1 must conform to the requirements outlined in the Consumer Financial Protection Bureau’s recently finalized QM final rule—effectively signaling the end of the so-called “GSE-patch.”

TOP MORTGAGE LENDERS: Overall, 2020 was a record year for the housing finance industry, but not everyone reaped the same gains from it, early analyses of Home Mortgage Disclosure Act data show. Nonbanks claimed more market share, and annual origination gains for Hispanic, Black and Native American borrowers were weaker than for other groups.

SECONDARY MORTGAGE GUIDE: What the secondary mortgage market is, and how it affects you.  

ALTERNATIVE CREDIT: New types of data to determine prospective buyers’ creditworthiness may increase homeownership opportunities for Black and Hispanic Americans. 

SECURITY DEPOSIT: Renters struggling to pay security deposits upfront may have new options.

APPRAISALS: How to clear appraisal bottlenecks.

CREDIT ACCESS: Mortgage credit availability increased in March, opening the mortgage market up to more borrowers.

REPEAT REFINANCE: You have the right to refinance your mortgage as many times as you want, but your lender may place some limitations on how frequently you may do so.

CONSTRUCTION COSTS: Lumber prices across the nation are at record highs and that means headaches and higher prices home builders and lumber suppliers.

FINANCIAL EDUCATION: Systemic barriers to homeownership and building wealth need to come down. Financial education isn’t enough