As deadline for new Fannie Mae rules approaches, are lenders ready?

Home lenders that work with Fannie Mae will face new pressure starting in September to have their ducks in a row regarding revamped prefunding and post-closing review procedures from the government-sponsored enterprise. Mortgage companies got the heads up about new prefunding tasks and shorter post-close review timeline earlier this year, but the requirements have been optional. The changes become mandatory starting Sept. 1. "I think for mortgage lenders, the biggest thing that they have to weigh is how operational ready are they to implement this and what are the costs? Do I do this myself, or do I outsource it?" Jenevieve Impavido, vice president, audit services, at LoanLogics said in an interview.

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G-fee debate revived in request for comment on mortgage pricing

The latest revamp of loan fees at government-sponsored enterprises Fannie Mae and Freddie Mac drew its share of critics, leading their regulator to ask whether it should rethink the capital framework driving them — and it looks like the answer, in some cases, is yes. To be sure, many critics, including Republican legislators who've sought to roll back the latest pricing change , have balked at the idea of overturning loan-level risk-based pricing in response. But not everyone has, and comment letters released recently confirm there are mixed opinions.

Nonbank mortgage profits rebound in Q2, but still in the red

Thanks in part to the spring homebuying season , mortgage bankers saw the amount made on a loan drastically rebound in the second quarter, though the sum remained in the red. Lenders reported a net loss of $534 on each loan they originated, or 18 basis points, according to a Mortgage Bankers Association's Quarterly Mortgage Bankers Performance Report. The results were a notable improvement from the loss of $1,972 per loan in the first quarter of 2023, and much better than the $2,812 loss per loan in the fourth quarter of 2022.

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CFPB fines Freedom Mortgage $1.75M for RESPA violations

The penalty will go into the bureaus victim relief fund. Specifically, the watchdog claims the mortgage shop was providing illegal incentives to real estate brokers and agents, such as cash payments, paid subscription services, and catered parties, with the understanding purchase business would be sent its way in return. Another party hit by a civil penalty in connection to this case is Realty Connect USA, which allegedly accepted numerous illegal kickbacks from Freedom. The real estate brokerage firm will have to pay a $200,000 penalty and cease its unlawful conduct, the CFPB said.

In debate over appraisal bias, rival researchers clash over key data

During the past two years, regulators and lawmakers have introduced and adopted new rules and guidelines aimed at curbing the impacts of racial bias on home valuations . But some appraisers and researchers insist these efforts have been based on faulty data. Conflicting findings from a pair of non-profit research groups call into question whether or not recent actions will improve financial outcomes for minority homeowners without leading to banks and other mortgage lenders taking on undue risks .

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