MBA Statement on FHFA Updates on Loan Repurchases and Appraisals

October 16, 2023 Press Release

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Falen Taylor

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PHILADELPHIA (October 16, 2023) — Bob Broeksmit, CMB, President and CEO of the Mortgage Bankers Association (MBA), issued the following statement regarding today’s Federal Housing Finance Agency (FHFA) remarks on loan repurchases and appraisals at MBA’s 2023 Annual Convention and Expo:

“MBA has advocated strongly for FHFA to address the GSEs’ increased incidence of loan repurchase requests – especially for performing loans and those with relatively minor issues underwritten during the pandemic.

“We share FHFA and the GSEs’ goal of high-quality underwriting and will continue to work with them to ensure the rep and warranty framework is being applied in a balanced way, and that there are appropriate alternatives that lead to outcomes short of a repurchase request.

“FHFA’s policy change to provide rep and warrant relief for performing seasoned loans that have successfully exited COVID-19 forbearance plans is a longstanding recommendation that we are pleased to see implemented.

“MBA also supports FHFA’s ongoing work on data transparency regarding appraisals and believe the release of appraisal-level records will improve appraisal accuracy while ensuring consumer privacy and safety and soundness.”

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