We’re as focused as ever on aligning requirements across the alphabet soup of federal agencies. I don’t have to tell you that FHA has different rules than Ginnie Mae, which has different rules from Fannie (Mae) and Freddie (Mac), which have different rules from the VA. It’s maddening, isn’t it? And it hurts borrowers.
We’re making this clear to the powers that be. Our message to them is simple. If they align their requirements across the board, we’ll be able to help more borrowers, more quickly, and more affordably, too. Alignment is a no-brainer, and we’ll keep fighting to make it a reality.
We’re also focused on capital standards and requirements for banks and non-banks which service mortgage loans. The current requirements are far too high – and going even higher. At the rate they’re going, they threaten to drive banks and non-banks alike out of the servicing business.
That would be an unmitigated disaster. Who would do your essential work? Who would fulfill the high responsibility of helping people keep their homes? The answer is no one – and the MBA is letting lawmakers know it. We’re talking with FHFA, Ginnie Mae, bank regulators, you name it. And across the board, we’re telling them: Right-size capital standards – and stop this wrong before it’s too late.
Another current focus for us is fixing loan assumption fees. Demand for assumptions is skyrocketing in this time of high-interest rates, understandably so. Yet the current situation is financially unsustainable, and your companies are losing huge amounts on each transaction.
Fortunately, there’s a simple fix. The VA, FHA, Fannie, and Freddie should increase their allowable fees, and index them to inflation, too. The MBA has formally made this request, and conversations with regulators are ongoing. It’s the only way to ensure we can keep helping so many borrowers – and we won’t rest until you get relief.