FHFA Revises Current Single-Family Home Loans Backed by Fannie Mae and Freddie Mac (iStock)
The Federal Housing Finance Agency (FHFA) has announced that the Federal Housing Finance Agency (FHFA) will provide federally sponsored companies Fannie Mae and Freddie Mac whose borrowers have opted for COVID-19 forbearance under the corporate representations and warranties framework. The company plans to revise the treatment of active single-family home loans supported by the company.latest media release.
“Under the updated representative and warrant policy, loans in which the borrower elects forbearance due to COVID-19 will be treated the same as loans in which the borrower obtained forbearance due to a natural disaster,” FHFA said. “As a result, loans that receive COVID-19 forgiveness remain eligible for certain personnel and guarantees based on the borrower’s payment history during the first 36 months of loan origination.”
FHFA Director Sandra L. Thompson said homeowners who needed more time to come up with housing costs during the pandemic could benefit from mortgage forbearance programs that reduce or suspend mortgage payments. He claimed to have received.
“Patience has been an invaluable tool for borrowers facing financial hardship due to the COVID-19 pandemic,” Thompson said. “Servicers have gone to great lengths to quickly implement forbearances during the national emergency. Loans serviced by servicers are subject to increased repurchase risk simply because their borrowers have been affected by the pandemic. You shouldn’t.”
FHFA allows a company’s existing agency and warrant policies for natural disasters to include a grace period for the debtor upon demonstrating a satisfactory payment history within the first 36 months of origination. He pointed out that there was. These policies will now be extended to loans where the borrower has opted for COVID-19 forbearance.
Mr. Thompson emphasized the importance of helping current and future homeowners manage their current housing situations. Mortgage Bankers Association Annual Conference last week. “In a housing market like this, it is increasingly important that both our policies and industry efforts are aligned to support existing and aspiring homeowners,” Thompson said. Stated. “That’s why I believe we need a model based on partnership and mutual feedback to achieve our common goal of promoting affordable and sustainable housing opportunities.”
If you’re considering becoming a homeowner, it may be helpful to shop around to find the best mortgage rates. Visit Credible to compare options from different lenders Choose the one with the best rate.
Mortgage rates continue to rise, but buyers can find the best deal by doing two things: Freddie Mac
Mortgage rates impact affordability, buyers advised to save up for down payment
Mortgage interest rates continue to rise. The average interest rate on a 30-year fixed-rate mortgage rose to 7.63% in the week ending Oct. 19, according to Freddie Mac’s latest research. Primary mortgage market research. This time, in 2022, the 30-year fixed interest rate will fall below 7%.
Buyers may be able to do themselves a favor by finding the best mortgage loan and making a sizeable down payment. Sam Cater, Chief Economist at Freddie Mac “In this environment, it’s important for borrowers to shop around for the best mortgage rates from multiple lenders,” he said.
Freddie Mac last week DPA One®is a new tool that allows mortgage lenders to quickly find and match borrowers to down payment assistance programs across the country.
“DPA One provides lenders and their borrowers with a one-stop shop that provides greater visibility into these programs, free of charge, while seamlessly connecting appropriate assistance programs to lenders, housing counselors, and borrowers who need this assistance most. We will tie it together,” Sonu said. Mittal, senior vice president and head of single-family home acquisitions at Freddie Mac, explains.
“Borrowers should also ask their lenders about down payment assistance, as research shows that down payments are the number one barrier to homeownership for first-time homebuyers,” Carter said. Ta.
Even if you’re looking to buy a home, shopping around can help you find the best mortgage rates. Visit Credible to compare options without affecting your credit score.
Many Americans are preparing for a recession despite signs of recession: Survey
Housing market is sluggish
By the end of 2023, there will be approximately 4.1 million existing home sales in the U.S., according to a report from Redfin, which will be the slowest year for home sales since the Great Recession of 2008.
Chen Zhao, Head of Economic Research, Redfin He said that at present, both buyers and sellers are hesitant across the board.
“Buyers are in a tough spot all year round,” Zhao said. “High mortgage rates and still-high house prices are making it more difficult than ever to buy a home, locking out many young people from homeownership and leaving homeowners wondering if 2023 is the best time to move.” Mortgage rates have remained high for longer than expected, keeping everyone away except those who need to move, and lowering sales forecasts for this year to a 15-year low.
“The last time home sales were this low was during the Great Recession,” Zhao continued.
Redfin agents advise buyers to invest in new construction properties that are doing well rather than used home sales. Redfin data shows new home sales rose 1.5% in September compared to the same month last year, even as prices fell about 4%.
Based on research from the National Association of Realtors (NAR) reporttotal home sales decreased by 2% from August to September, and by 15.4% from September 2022 onwards.
Looking to reduce the cost of buying a home? Compare your options to find the best mortgage rate. Visit Credible to talk to a mortgage expert Please answer the questions.
Is affordability keeping you from owning a home? Here’s how to prepare
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