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Mortgage Daily News

A Request; Should Fannie and Freddie Update Their Credit Requirements?

Posted To: MND NewsWire

There is a rather unusual request up on the Federal Housing Finance Agency's (FHFA's) website. Two FHFA analysts, saying that the issue of updating the credit score requirements for Fannie Mae and Freddie Mac (the GSEs) is among the most difficult they have faced, are personalizing an earlier formal Request for Input (RFI) published in the Federal Record. Robert M. Dunsky, Principal Financial Engineer, and Elizabeth R. Spring, Senior Policy Analyst, from the Offices of Housing & Regulatory Policy and Policy Analysis & Research respectively wrote the request. They explain that the GSEs currently use the Classic FICO model, supplementing it with their own automated underwriting systems (AUS) where no credit score is available for a borrower. FHFA believes an update to the GSE credit score...(read more)

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New Home Construction Retreats Quickly in December

Posted To: MND NewsWire

Both housing starts and permits were expected to retreat a bit in December , following their strong performances in October and November. Permits did tick down, but housing starts, which were exceptionally strong in November, gave back in a much bigger way. The U.S. Census Bureau and the Department of Housing and Urban Development said starts were at a seasonally adjusted annual rate of 1,192,000, an 8.2 percent month-over-month decline, and were off by 6.0 percent from the December 2016 pace. The November estimate for housing starts was revised up from 1,297,000 to 1,299,000. The housing starts number was substantially lower than analysts had anticipated . Those polled by Econoday had made predictions ranging from 1,230,000 to 1,320,000 units, with a consensus of 1,280,000. The performance...(read more)

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MBS Day Ahead: Is it Over?

Posted To: MBS Commentary

Is the decades-long bull market in bonds over? I imagine we'll be talking about this sort of thing every time yields spike to multi-month highs and even every time they spike aggressively after hitting multi-month lows. It's a bit of an unfair conversation. As long as you are capable of understanding that rates can't go perpetually lower, you will have a big leg up on anyone who asks you "is it over?" It was never going to last forever in the first place! Let's back up a bit and talk about what's going on in the short term. Simply put , we were hoping to see 10yr yields bounce at a ceiling of 2.60%. We were somewhat optimistic about that after seeing Tuesday's candlestick break lower from the upper Bollinger Band line seen in the following chart, but with plenty...(read more)

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