Fannie Buy Backs

[Non Sequitur]

Agency loan-repurchase strategy sparks pushback

IMBs have been coping with a still-surging wave of loan-repurchase requests from the GSEs that represents yet another threat to lenders’ already stretched balance sheets.

www.housingwire.com

“Much of the problem stems from the huge volume of low-rate loans originated in 2020 and 2021 at a time when the industry was continuously working to build capacity to deal with the explosive origination growth. That capacity issue, industry experts contend, resulted in a higher rate of underwriting errors than in more normal times that the agencies, Fannie Mae and Freddie Mac, are still uncovering as part of their ongoing quality-control checks — sometimes months or even years after a loan was originated.

There is a concern among IMBs, however, that Fannie and Freddie are being too aggressive in pursuing the repurchase option on loans with minor underwriting defects that could be cured far short of a draconian buyback demand.“


“The problem for independent mortgage banks (IMBs), particularly smaller to mid-size IMBs ($1 billion in originations or less) is that they have few good options for dealing with 2020 or 2021 vintage loans they end up repurchasing from the agencies. Those mortgages were originated at interest rates of 3% or less, and rates now are more than 3 percentage points higher.

Industry experts said most small and even midsized IMBs don’t have the ability to hold repurchased loans on their balance sheets, so they will likely have to turn to the whole-loan market to sell them.

“Those loans are going to be 20 points underwater, for the 3% to 3.5% kind of coupons, the 2021 kind of vintage” said John Toohig, head of whole-loan trading on the Raymond James whole-loan desk and president of Raymond James Mortgage Co. “It’s going to be in the low 80 cents on the dollar range.””

HEADS UP APPRAISERS-BOLDING MINE:

“Issues related to appraisals and income are the highest areas of repurchases across the groups that we work with,” Ludden added.

 

[Mejappz]

Agency loan-repurchase strategy sparks pushback

IMBs have been coping with a still-surging wave of loan-repurchase requests from the GSEs that represents yet another threat to lenders’ already stretched balance sheets.

www.housingwire.com

It's pure fraud.

The New & Improved Fannie Mae “FRAUDULATOR 2.0”

Fannie Mae “FRAUDULATOR 2.0” is a troubling development, resulting in outright fraud being perpetrated against banks.

appraisersblogs.com

 

[Mejappz]

For all of you who thought CU was some magic elixir. You should listen to those who told you it was a piece of crap.

 

[Surf Cat]

The problem is that CU was for the underwriters. Then they started using it for the appraisers.....that's where they tied their left and right shoelaces together.

 

[Mejappz]

It's funny how you used to hear people say that CU would stop them from blaming you for the value. But they'll always find someone else to blame instead of owning up to their own actions.

 

[Mejappz]

The problem is that CU was for the underwriters. Then they started using it for the appraisers.....that's where they tied their left and right shoelaces together.

See the article I posted. You now have whistleblowers ready to spill the beans in exchange for Congressional protection.

 

[Meandering]

Oh come on man.
They were going to use CU to make your appraisals better.



And how come nobody did the FNC to Fannie CU equation?

.