During the Financial Stability Oversight Council's Principals Meeting today in Washington, D.C., it was announced that the council will begin an activities-based review of the secondary mortgage market. In December, it implemented an activities-based approach for identifying and addressing potential risks to financial stability.
"I applaud [Treasury] Secretary [Steven] Mnuchin and the Financial Stability Oversight Council for initiating an activities-based review of the secondary mortgage market," said Federal Housing Financing Agency Director Mark Calabria. "As demonstrated by the 2008 financial crisis and again by COVID-19, Fannie Mae and Freddie Mac must be well capitalized in order to support the mortgage market during a stressed environment."
The review will assess both the risk that activities in the secondary mortgage market pose to the stability of the financial system, and the efficacy of various risk mitigants, according to an FHFA announcement.
The oversight council is charged with identifying risks to the financial stability of the United States; promoting market discipline; and responding to emerging risks to the stability of the financial system. The council consists of 10 voting members and 5 nonvoting members and brings together the expertise of federal financial regulators, state regulators, and an independent insurance expert appointed by the President.
Lenders report rising second-lien production as homeowners protect low first-mortgage rates
Home equity lending is growing fast, and industry executives expect it to surpass Non-QM in origination volume as soon as 2027."I think equity originations are expected to surpass NonQM originations in 2027," said Tom Davis, chief sales officer at Deephaven Mortgage.The grow...
Realtor.com reports a sharp decline in purchase activity as higher rates erode borrowing power
Home contract signings fell 17% year over year in October, reaching their lowest level for the month on record, as higher mortgage rates continued to squeeze buyers out of the purchase market, according to Realtor.com's latest housing report.The annual decline was the steepe...
Rising Treasury yields and fresh inflation data complicate rate locks, borrower qualification, and lender margins as markets anticipate another hike in December
The $20 million investment from Saluda Grade will support expansion beyond 27 states and new loan products across wholesale, retail, and community channels
September’s inflation pickup puts recent rate improvements at risk, potentially eroding affordability gains from lower home prices and seller concessions
The latest deal connects borrower retention technology with Maxwell's origination platform and PLACE's real estate network, creating new opportunities for lenders
Both bureaus introduce ways to purchase credit scores separately from reports, while Equifax reports growing VantageScore adoption and extends $1 pricing through 2028