Mortech Blog


Lori Rezac

Recent Posts

FHFA Structure Declared Unconstitutional

Posted by Lori Rezac on Jul 24, 2018 1:24:25 PM

Fannie Mae and Freddie Mac shareholders have brought suit against the Federal Housing Finance Agency (FHFA) claiming the agreement made in 2012 to bail out the agencies is rendering their shares valueless. The suit also claims the structure of the FHFA is unconstitutional because of the single Director removable only for cause by the President.

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Fannie Mae Announces EPMI Pilot

Posted by Lori Rezac on Jul 20, 2018 11:38:50 AM

Fannie Mae is piloting a new type of mortgage insurance, however response to the new program hasn’t been entirely optimistic.


The mortgage insurance option is called Enterprise-Paid Mortgage Insurance (EPMI) and allows a lender to deliver an over 80% loan-to-value (LTV) mortgage to Fannie Mae without acquiring mortgage insurance prior to loan delivery. Instead Fannie Mae charges an additional loan-level price adjustment. Then, they secure coverage under a forward insurance arrangement from a Fannie Mae approved qualified insurer, or an approved traditional mortgage insurer.


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Freddie Mac Announces New HomeOne Mortgage

Posted by Lori Rezac on May 1, 2018 11:01:19 AM

A new conventional product option has been announced by Freddie Mac and will be available starting July 29, 2018. The HomeOne mortgage is similar to the Home Possible Advantage option currently offered by Freddie Mac, but will be focused on first time homebuyers. This is a low down payment option with a down payment requirement of only 3 percent and requires no geographic or income restrictions.

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FOMC Raises Rates

Posted by Lori Rezac on Apr 9, 2018 2:28:37 PM

The Federal Open Market Committee (FOMC) recently announced an increase to the target range of the federal funds rate to 1.5 to 1.75 percent. Fed Chairman Jerome Powell in his first meeting as the Chairman of the Federal Reserve approved the increase. This is in response to the strong economic outlook in recent months. The FOMC expects this to continue with gradual adjustments to monetary policy.

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Roll Back of Dodd-Frank Passes Senate

Posted by Lori Rezac on Mar 16, 2018 12:43:13 PM

Changes to Dodd-Frank are one step closer to being realized this week with modifications passing the Senate with a vote of 67-31. The bill, sponsored by Senate Banking Committee Chairman Mike Crapo (R-Idaho), is being presented as a way to diminish the negative impact the law has had on small banks and credit unions, according to The Hill. Those in opposition of the changes such as Sen. Sherrod Brown (Ohio) believe the bill favors "special interests and Wall Street."

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Increased Interest in Renovation Mortgages Leads to Fannie Mae Product Enhancement

Posted by Lori Rezac on Feb 13, 2018 2:54:05 PM

In the Desktop Underwriter/Desktop Originator Release Notes for version 10.2, Fannie Mae has announced an enhancement to the HomeStyle Renovation Mortgage. The maximum LTV on 1-unit, primary residence properties will increase from 95 percent to 97 percent with the implementation of the updates the weekend of March 17, 2018. This applies to purchase and limited cashout refinance transactions. For LTVs over 95 percent on purchase transactions, at least one borrower must be a first-time homebuyer. Refinance transactions will require the existing loan be Fannie Mae-owned, similar to the requirements of the HomeReady product.

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Predictions for Housing in 2018

Posted by Lori Rezac on Jan 23, 2018 11:41:32 AM

As we head into a new year, a look back at 2017 shows us that it is incredibly difficult to predicate the housing market. The experts predicted that 2017 would see rising interest rates, moderate price growth, and an increase in new construction. What happened was nearly the opposite. We continued to struggle with a lack of inventory causing prices to increase, and mortgage rates stayed low through the year. With the impact of the new tax bill still being determined, predicting 2018 will be especially difficult.

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Changes To Expect With The New Single Security

Posted by Lori Rezac on Nov 13, 2017 2:39:18 PM

The single security will be implemented in the 2nd quarter of 2019, according to the Federal Housing Finance Authority (FHFA), but many are unaware of how this impacts them. Freddie Mac has released a document, Single Security: What Does It Mean for Freddie Mac Seller/Servicers, that assists with this need for additional information.  But first, let’s learn a little more about this initiative.

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MBA Comes Out In Support of SAFE Transitional License Act

Posted by Lori Rezac on Aug 23, 2017 1:38:17 PM

The MBA released a statement this week in response to the introduction of the SAFE Transitional License Act in the Senate. This bill would allow registered loan originators to be granted temporary authority for 120 days to originate mortgage loans when transitioning between federally insured institutions, as well as between states.

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Competition Among Credit Score Models Being Considered

Posted by Lori Rezac on Aug 7, 2017 12:13:24 PM

There has been quite a bit of talk lately regarding different credit score models and if the mortgage lending industry should allow more than just the traditional FICO.  In the past, many have questioned the accuracy of the FICO, partially due to the complexity of the calculation.  A bill has been introduced in the Senate to address these concerns, called the “Credit Score Competition Act”. 

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