Thechanges the Treasury Department and FHFA made to the preferred stock purchase agreements (PSPA) in January caused major headaches for lenders. The changes included a cap on the number of loans backed by investment properties that could be bought by the GSEs, as well as limits on higher LTV loans.
There wasconcern at the time that the private label market would not be able to absorb those loans, but original reporting by HousingWire Senior Mortgage Reporter Bill Conroy, published this week, showed that, in fact, the changes sparked a "boom" in private-label securitizations backed by mortgages on second homes and investment properties.
As the article says: "The mortgage-collateral volume and total deal count in 2021 dwarfs even the combined totals from the prior two years." Read the entire analysishere.
PSPA changes were also the subject of anopinion piece we published yesterday by Craig Thomas, policy director of the Community Home Lending Association. Thomas discusses the pros and cons of the most recent PSPA policy changes from the perspective of smaller lenders, including access to credit, capital requirements and transparency into the GSEs' automated underwriting systems. You can find thathere.
Finally, we're gathering industry leaders for a Lunch & Learn on Nov. 5 to talk about the policy changes from HUD and FHFA affecting lenders as they vigorously pursue equitable housing goals, and what to expect next.Register here and don't miss what is sure to be a lively discussion!
Until Monday —
Sarah Wheeler
HousingWire Editor in Chief
Carol Dujanovich on HUD's housing counseling committee
Real Estate
Today's HousingWire Daily features a crossover episode with the RMD Podcast. Chris Clow and Carol Dujanovich discuss the significance of the appointment and what the committee will aim to achieve under HUD Secretary Marcia Fudge.
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