Fannie Mae announced enhancements to its Desktop Underwriter that will streamline originations for lenders and buyers.
The new capability automates the validation of borrowers’ assets, income, and employment and produces a 12-month report. Bank statements, information about assets, and other data from third-party vendors become available in just one step.
The report can then also be used to consider positive rent payment and cash flow history, a feature that supports borrowers with little or no credit history.
Fannie Mae says lenders can “achieve Day 1 Certainty” when with validated information, potentially increasing loan quality and reducing repurchase risk.
“Fannie Mae is continually focused on modernizing the mortgage finance experience and exploring new ways to help our lenders open more doors…
Mortgage rates increased slightly last week but remain in the mid-6s, encouraging some potential buyers to come off the sidelines.
Officials at Freddie Mac reported Thursday that the 30-year fixed-rate mortgage averaged 6.66%, up from the week prior’s 6.62%. A year ago at this time, the 30-year FRM averaged 6.33%.
This is the second consecutive week of increases, but just the second since October. Rates have fallen more than a full percentage point since then, giving homebuyers more breathing room as they struggle against record-high unaffordability.
The 15-year fixed rate bucked this trend and fell for a second week, from 5.89% to 5.87%. A year ago, it averaged 5.52%.
Freddie Mac Chief Economist Sam Khater noted that even as rates…
Two high-level execs at Fannie Mae will retire in the next twelve months, leading to leadership changes, officials at the GSE announced.
Fannie Mae President David C. Benson is retiring in 2024, while Chief Administrative Officer Jeffery Hayward will step down at the end of this year.
“We’re deeply grateful to both Dave and Jeff for their leadership and decades of service,” said Michael Heid, Chair of Fannie Mae’s Board of Directors. “As they depart, we are implementing our succession plans and streamlining our leadership structure to continue advancing our strategy and our mission to serve homeowners, renters, and the housing market as a whole.”
Benson served for 21 years in various roles at Fannie Mae, including Interim CEO, CFO,…
As inflation slowly cools, consumers are feeling a lot more secure in their personal finances. But when it comes to homebuying, they’re still in the dumps.
Leaders at Fannie Mae said the Home Purchase Sentiment Index increased by 4 points YOY in July as consumers responded positively to the job security and mortgage rate components.
When asked to describe their feeling about the housing market, consumers became much more pessimistic, however, with 82% reporting that it’s a “bad time to buy” a home. This is a record high, up from 78% in June and above the last all-time high in October 2022.
“While consumers are reporting confidence in the components related to their personal financial situations, it’s unlikely we’ll see…
Mortgage rates declined last week, breaking a three-week streak of increases.
Officials at Freddie Mac reported Thursday that the 30-year fixed-rate mortgage averaged 6.71%, down from 6.79% the week prior.
A year ago at this time, the 30-year FRM averaged 5.23%.
The 15-year fixed-rate mortgage also fell from 6.18% to 6.07%. A year ago, it averaged 4.38%.
“Mortgage rates decreased after a three-week climb,” said Sam Khater, Freddie Mac’s Chief Economist. “While elevated rates and other affordability challenges remain, inventory continues to be the biggest obstacle for prospective homebuyers.”
Elevated rates are keeping prospective home sellers locked in their current homes, unwilling to give up the super-low rates they scored during the pandemic housing boom. Builders are building, but not…
Ravi Shankar has joined Freddie Mac as senior VP and head of Single-Family Portfolio and Servicing, the GSE announced in a press release. Shankar is returning to Freddie Mac, having served as an executive for the GSE from 2013 to 2019. In that period, he served as SVP for Single-Family Portfolio Management and deputy head of Investments and Capital Markets, respectively. He is a member of the company’s senior operating committee and reports to its president, Mike Hutchins. “Ravi Shankar brings substantial experience to the company as a respected financial services leader, portfolio manager, and Freddie Mac alum. I am pleased to welcome him back to the company,” said Mike Hutchins, President of Freddie Mac. “I look forward to working…
Loosening lending standards are making it easier than ever for gig workers to finance homes. These workers often make enough money to qualify for a loan, but often have a difficult time proving that to lenders. “It is a phenomenon with this gig economy where people can drop in and have an Amazon play, and they’re pulling in $10,000 a month from it. So, these are not traditional type borrowers,” Eric Morgenson, VP of business development at Angel Oak, said on a panel discussing loans for gig workers. Self-employed borrowers are typically asked for contract work 1099s, copies of the last 12 to 24 months of business and personal bank statements, and year-to-date profit-and-loss statements that report revenue, expenses, and…
Priscilla Almodovar has been named Fannie Mae’s CEO and member of the Board of Directors, the GSE announced in a press release. Almodovar will succeed former interim CEO David C. Benson, who will remain in the role of President. “It’s an honor to join Fannie Mae and lead the company as it carries out its vital role in the housing finance market and works to help ensure that equitable, affordable housing is available to people in communities across the country,” Almodovar said. “I look forward to working with the Board, Management, and my new colleagues at Fannie Mae to continue this important work, which has benefited so many people over the company’s more than 80-year history.” She offers three decades…
Staircase launched a new application programming interface that allows lenders and servicers to embed automated underwriting technology into their applications and sync to their point of sale (POS) and loan origination systems (LOS). The interface gives lenders an option besides the technology included in most POS and LOS products. The standard fare is equipped with AUS tech provided by the GSEs, which Staircase says are “typically static and offer fixed functionalities.” Staircase offers same-day GSE integration that can be synced across multiple systems. As a result, lenders can push loan decisions further up in the origination process. “Our GSE API is a real game changer,” said Staircase Co-founder and CEO Adam Kalamchi. “By pulling AUS logic upstream as far as…
Another mid-month slowdown in exits brought on a 1% increase in active forbearance plan totals, according to Black Knight’s blog, Vision. Approximately 8,000 homeowners entered new forbearance plans this week. Loans held by portfolio and PSLs had the largest increase, with a 4.5% jump of 12,000 new plans. FHA/VA loans in forbearance fell by 4,000, down 1%. GSE loans stayed flat. The total share of active plans is down by 125,000, or 12%, month-over-month. Black Knight noted that little is expected to change between now and the end of the year. “The next opportunity for meaningful declines will occur in early January with nearly 200,000 plans scheduled for extension or removal through the end of the year, nearly half of…
