More PSPA amendments in the works

The PSPA amendments announced in January limit the number of single-family loans secured by investment properties or second homes that can be bought by Fannie and Freddie, capping the acquisitions at 7% of the GSEs' total single-family acquisitions.

Was this newsletter forwarded to you? Sign up here. Good afternoon —   During the MBA Spring Conference today, FHFA Director Mark Calabria said there needs to be another round of PSPA amendments to further capitalize Fannie and Freddie. Calabria said that "to be able to bring in the kind of capital that we needed to Fannie and Freddie for them to be able to support the mortgage market, we need to restructure the balance sheet, and that needs to be another round of PSPA, and of course all the things in the PSPA are on the table."   The PSPA amendments announced in January limit the number of single-family loans secured by investment properties or second homes that can be bought by Fannie and Freddie, capping the acquisitions at  7% of the GSEs' total single-family acquisitions.   However, the lack of clarity in the way the GSEs may have implemented the limits and the date lenders had to adjust loan deliveries caused the MBA to send a comment letter to Treasury and the FHFA in March, citing four areas of concern.   This week, Dave Stevens, former CEO of the MBA as well as former commissioner of the FHA, expressed his concern over several of the amendments, specifically the impact on minorities given the quality thresholds imposed by FHFA.   "In some cases Calabria's actions will simply shift business from the GSEs to the other government-backed programs of FHA, VA, and USDA," Stevens writes. "In other cases, the loans will simply not be done as they will be 'out of the money' in terms of consumer appeal. And yes, an increase in private capital will help offset some of the product gaps, but that is yet to be seen in scale."   We'll be keeping a close eye on any additional PSPA amendments and how that could affect housing.   Until tomorrow —   Sarah Wheeler HousingWire Editor in Chief Homebuying competition ignites the market    Today's HousingWire Daily features an interview with Opendoor Broker Associate and Consumer Trends Expert, Beatrice de Jong. In this episode, De Jong discusses the current state of the housing market and why competition is fierce for homebuyers. Listen now Calabria: We need another round of PSPA amendments    On Tuesday FHFA Director Mark Calabria said the controversial amendments made to Fannie Mae and Freddie Mac's Preferred Stock Purchase Agreements in late January should be just the start, "a bridge" to better capitalization of the GSEs. HW+ Premium Content Servicer Resources at Your Fingertips Servicers can make a difference to homeowners impacted by COVID-19. Fannie Mae's one-stop toolkit has all the information you need to answer homeowners' questions about forbearance and post-forbearance options. Visit the Toolkit. Sponsored by Fannie Mae Homes in Black neighborhoods undervalued by $46,000    In analyzing more than 7 million homes sold between 2013 and the beginning of 2021, Redfin found homes in Black neighborhoods are undervalued by an average of $46,000 compared to homes in primarily white neighborhoods, the company said. Should lenders look to non-QM when the refi boom slows?   HousingWire recently sat down with Tom Hutchens, Angel Oak EVP of production, who shared how non-QM lending could be an effective way for lenders to replace lost business in the event of a refi boom slowdown. Presented by Truework HousingWire, 433 East Las Colinas Blvd., Suite 830, Irving, TX 75039, (469) 893-1480 Unsubscribe Manage preferences

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