The Federal Housing Finance Agency (FHFA) announced updates to several appraisal policies related to Fannie Mae (OTCQB: FNMA) and Freddie Mac (OTCBQ: FMCC).
The government-sponsored enterprises (GSEs) will expand eligibility for appraisal waivers and inspection-based appraisal waivers, with the maximum loan-to-value (LTV) ratio of purchase loans eligible for appraisal waivers increasing from 80% to 90% and the maximum LTV ratio of purchase loans eligible for inspection-based appraisal waivers will increase from 80% to 97%.
In partnership with the Department of Housing and Urban Development, FHFA will significantly expand the Uniform Appraisal Dataset (UAD) to include appraisal data from applications for Federal Housing Administration-insured loans.
FHFA also announced an expanded eligibility for the Freddie Mac pilot program that offer lenders a fee-based alternative to repurchase requests for performing loans with defects – going forward, Freddie Mac will expand this pilot to all approved lenders. For lenders that do not participate in the pilot, Freddie Mac will offer a “Fee Only” option where the fee is charged on the defective loan only, in lieu of a repurchase.
And for loans delivered through the mortgage-backed security (MBS) swap channel, the GSEs will provide 60 days advance notice of increases to their base guarantee fees greater than 1 basis point.
“Today’s announcements highlight actions that will better ensure the Enterprises are reliable sources of liquidity for lenders of all sizes and types, which in turn will promote access to sustainable credit for consumers,” said FHFA Director Sandra L. Thompson, who announced the updates at the Mortgage Bankers Association Annual Convention & Expo in Denver. “FHFA is committed to supporting current and aspiring homeowners, as well as renters, who face persistent affordability challenges in the housing market.”
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