Fannie Mae, CFPB make moves on pilot program, junk fee investigation
Mike SP
Fannie Mae, CFPB make moves on pilot program, junk fee investigati
In the latest developments regarding federal title insurance moves, Fannie Mae is seeking to issue a request for proposals to identify potential suppliers for participation in the title acceptance pilot and the Consumer Financial Protection Bureau is seeking information from homeowners on how junk fees are impacting homeowners.
Fannie Mae, CFPB make moves on pilot program, junk fee investigation
In the latest developments regarding federal title insurance moves, Fannie Mae is seeking to issue a request for proposals to identify potential suppliers for participation in the title acceptance pilot and the Consumer Financial Protection Bureau is seeking information from homeowners on how junk fees are impacting homeowners.
Mike SP
The Federal Housing Finance Agency announced Tuesday that Freddie Mac wants to be able to buy certain single-family closed-end second mortgages. Because this would technically be a new product, it’s subject to FHFA approval and requires a 30-day public notice period.
“Freddie Mac has indicated that the primary goal of this proposed new product is to provide borrowers a lower cost alternative to a cash-out refinance in higher interest rate environments,” FHFA said.
Under the proposal, Freddie said it would only acquire seconds in instances where the GSE already owns the associated first mortgage. Freddie added that, at least initially, it would provide “spot bids” for seconds rather than forward prices.
Freddie says it will keep the second mortgages in portfolio for six to nine months before securitizing them. That’s to allow enough time for the creation of non-TBA guarantee securities and the systems to implement them. It will also tee up the securities for credit risk transfer opportunities.
For more details, see Inside Mortgage Finance later this week.