Residential Briefs

MBA NewsLink Staff

April 02, 2019

FHFA: Fannie Mae, Freddie Mac Complete $2.8 Trillion in Credit Risk Transfers
The Federal Housing Finance Agency issued its semi-annual Credit Risk Transfer Progress Report, noting Fannie Mae and Freddie Mac transferred a portion of credit risk on nearly $3 trillion of unpaid principal balance in 2018.

The report noted in 2018 both Enterprises addressed an accounting timing mismatch associated with direct debt issuance--Freddie Mac through execution of STACR trust transactions and Fannie Mae through a new CAS REMIC structure.

The Progress Report said the Enterprises transferred risk on $643 billon of UPB with a total RIF of $22 billion. Securities issuances, such as Structured Agency Credit Risk and Connecticut Avenue Securities, accounted for 64 percent of RIF. Fannie Mae transferred risk on $332 billion of UPB, with a total RIF of $11.1 billion. Freddie Mac transferred risk on $311 billion of UPB with a total RIF of $11.1 billion.

The report can be accessed at https://www.fhfa.gov/AboutUs/Reports/ReportDocuments/CRT-Progress-Report-4Q18.pdf.

Fitch Ratings: Rising Inventory Slowing U.S. Home Price Growth
Fitch Ratings, New York said national home price growth remains stable throughout much of the country, though the rate of growth is slowing down.

Fitch said national home prices grew by 4% annually in fourth quarter, slower than the 6% annual growth home prices have averaged for the past six years. West Virginia led the slowdown with 6% annual home price depreciation while California's home price growth stalled at less than 1% annually.

"National home prices are currently 2% overvalued on a population weighted average basis," said Managing Director Grant Bailey. Fitch expects home price growth to continue slowing this year.

CFPB Releases HMDA Modified Loan Application Registers
The Consumer Financial Protection Bureau published Home Mortgage Disclosure Act Modified Loan Application Registers data for nearly 5,400 financial institutions.

The CFPB said this is the first year in which additional data reported by certain institutions under the 2015 HMDA rule will be available. The Modified LARs contains loan level information for 2018 on individual HMDA filers, modified to protect privacy. For guidance as to how submitted data is modified to protect privacy, see https://www.consumerfinance.gov/about-us/newsroom/consumer-financial-protection-bureau-announces-policy-guidance-disclosure-home-mortgage-data/.

Later this year, the Bureau said additional information will be published related to HMDA, including a complete loan level dataset and HMDA aggregate and disclosure reports. These data products will be accompanied by a Data Point article highlighting key trends. The information to be released this year will include certain new data points, which can provide more insights into the mortgage lending practices of institutions. The CFPB anticipates applying particular rigor and analysis to address data anomalies, including in the new data points and describing the context in which the data may be best understood.

The 2018 HMDA Modified LARs are available at https://ffiec.cfpb.gov/data-publication/modified-lar.

Anow Integrates with Veros
Anow, Red Deer, Alberta, announced appraiser productivity and appraisal quality integrations with Veros Real Estate Solutions, Burlingame, Calif., a developer of enterprise risk management, collateral valuation and predictive analytics services.

Anow's integration with Veros' PATHWAY platform allows Anow users to submit appraisals to Fannie Mae and Freddie Mac through the Uniform Collateral Data Portal and to the Federal Housing Administration via the Electronic Appraisal Delivery portal. As an additional quality control measure, PATHWAY incorporates Veros' VeroSCORE appraisal risk management platform to score appraisals and identify potential appraisal-related issues prior to submission.

Anow users can now order automated valuation model services from Veros' proprietary VeroVALUE AVM or from other third-party AVMs and AVM cascades through VeroSELECT. Alternatively, Anow customers can use VeroPRECISION, a property-level valuation decision engine, to determine up front if a subject property is a good candidate for an AVM.

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