Potomac Point Group
Boutique consulting services for the housing finance industry
PPG Industry Insights
The housing finance industry is in an exciting place. From changes in policy to technology and innovation, see what those changes mean for you and your firm.
In The News*
February 29, 2024
Source: FHFA
FHFA is aligning the implementation date of the bi-merge credit reporting requirement with the transition from the Classic FICO credit score model. This aligned transition is expected to occur in the fourth quarter of 2025. The industry will continue to work through the policy and implementation specifics, but this announcement addresses some of the most fundamental outstanding questions.
November 7th, 2023
Source: Scotsman Guide
Although blockchain has yet to earn widespread adoption in the mortgage space, leaders in the industry are willing to explore its ability to solve 'real world mortgage banking challenges.'
September 7th, 2023
Source: HousingWIre
Mortgage applications plummeted to a 1996 low, unsurprising with interest rates at a 20-year high. Is this the bottom? Or will rate hikes continue to dampen the housing market further?
August 17th, 2023
Source: National Mortgage News
The upcoming credit scoring model updates are a big step forward for the mortgage industry, given that the GSEs have not updated their requirements in almost 20 years. But with an industry moving fast toward real-time data and AI-enabled models, will FHFAs current plans enable the mortgage industry to keep up?
August 17th, 2023
Source: National Mortgage News
The upcoming credit scoring model updates are a big step forward for the mortgage industry, given that the GSEs have not updated their requirements in almost 20 years. But with an industry moving fast toward real-time data and AI-enabled models, will FHFAs current plans enable the mortgage industry to keep up?
April 3rd, 2023
Source: Housing Wire
The controversial loan-level pricing adjustment (LLPA) for borrowers with high debt-to-income (DTI) ratios has been rescinded by the FHFA. As a result, it could become simpler for borrowers with higher DTIs to obtain mortgage loans supported by Fannie Mae and Freddie Mac.
April 3rd, 2023
Source: Mortgage Professionals Association
Home loans in delinquency and foreclosure are remaining relatively stable despite market volatility. According to CoreLogic, mortgage performance remained static in January - read more to dive deep into the numbers.
March 27th, 2023
Source: Reuters
First Citizens announced they will be acquiring Silicon Valley Bank, assuming all of their assets, deposits and loans. The purchase, valued at $72 billion, will come to First Citizens at a steep discount
March 13th, 2023
Source: National Mortgage News
Former Fannie Mae CEO, Timothy Mayopoulos, has been appointed as the new CEO of Silicon Valley Bank's FDIC-Appointed "bridge bank". He brings with him over three decades of experience in the financial services industry and is expected to help the bank navigate it's current predicament.
March 8th, 2023
Source: Mortgage Bankers Association
The MBA has expressed its support for HUD's new rule which allows standalone 40-year modifications for FHA loans. According to MBA, the new rule will provide distressed borrowers with additional options to avoid foreclosure and remain in their homes.
INSIGHTS
The world of SOFR is evolving quickly with the "SOFR First" initiative beginning to change market conventions and ARRC endorsed term rates. But can progress continue?
INSIGHTS
The "Climate Rule" has the potential to impact how businesses operate, but will this rule change the game for the mortgage industry? And what about the timeline?
INSIGHTS
The market wants to see robust, well-defined alternative markets before they jump in - but if everyone is waiting, how can these markets develop?
INSIGHTS
Read about the major themes, pain points, and
operational difficulties highlighted by professionals in the industry
FEATURED INSIGHT
Credit Scores are finally getting an update. The Federal Housing Finance Agency (FHFA) announced a multi-year effort to update the use of credit scores in Government Sponsored Entity (GSE) mortgage purchase, but many questions remain.
FEATURED INSIGHT
In February, FHFA provided some much-needed clarity on the ultimate credit score implementation approach and timeline. But many critical questions remain to get us from here to there - and the clock is ticking.
INSIGHTS
The adoption of new models represents a hopeful future where individuals can access the credit they need to secure homes.
INSIGHTS
After almost 20 years, credit scores used in mortgage lending are finally getting an update. But is FHFA trying to move too far, too fast?
*Views expressed in the news are not necessarily those of Potomac Point Group and are provided here only as information currently of interest in the housing finance industry.