Releases, Statements, Speeches and Testimony



FHFA Issues Proposed Rule on Validation and Approval of Credit Score Models2594312/13/2018 5:00:00 AMNews Release<p> <strong>Washington, D.C. </strong>–<strong> </strong>The Federal Housing Finance Agency (FHFA) is seeking public comment on a proposed rule that would establish standards and criteria for the validation and approval of third-party credit score models used by Fannie Mae and Freddie Mac (the Enterprises). &#160;This proposed rule is required by Section 310 of the Economic Growth, Regulatory Relief, and Consumer Protection Act (Public Law 115-174) enacted in May (the Act).&#160; </p><p>The proposed rule would establish a four-phase process for an Enterprise to validate and approve credit score models&#58; </p><ul style="list-style-type&#58;disc;"><li>Solicitation of applications from credit score model developers</li><li>Review of submitted applications</li><li>Credit score assessment</li><li>Enterprise business assessment </li></ul><p>The Act does not require the Enterprises to use a third-party credit score model.&#160; However, if an Enterprise conditions the purchase of a mortgage loan on a borrower's credit score, that credit score must be produced by a model that has been validated and approved by the Enterprise based on the standards and criteria in the Act and FHFA regulations. </p><p>Before the Act's passage, FHFA had been actively evaluating the potential impact of a <a href="/PolicyProgramsResearch/Policy/Pages/Credit-Scores.aspx"> new credit score model</a>&#160;or models as part of an ongoing Conservatorship Scorecard Initiative.&#160;In July, FHFA <a href="/Media/PublicAffairs/Pages/FHFA-Announces-Decision-to-Stop-Credit-Score-Initiative.aspx">announced</a> it would not make a decision on updating the credit score model used by the Enterprises and instead would shift its focus to implementing the steps required under the Act. </p><p>FHFA invites interested parties to submit comments on the proposed rule via FHFA.gov within 90 days of publication in the Federal Register or via mail to FHFA, Eighth Floor, 400 Seventh Street SW, Washington D.C. 20219.&#160; FHFA will also hold a webinar on Jan. 9 at 1 p.m. EST to explain the proposed rule and answer questions.&#160; Register for the webinar&#160;<a href="http&#58;//ems8.intellor.com/?do=register&amp;t=1&amp;p=810900">here</a>.</p><p> <a href="/SupervisionRegulation/Rules/Pages/Validation-and-Approval-of-Credit-Score-Models.aspx">Link to Proposed Rule</a></p><p> <strong>Link to Fact Sheet&#58; </strong> <a href="/Media/PublicAffairs/PublicAffairsDocuments/Validation-and-Approval-of-Credit-Score-Models-by-the-Enterprises-Fact-Sheet.pdf">Proposed Rule on Validation and Approval of Credit Score Models</a></p>12/13/2018 6:00:43 PMHome / Media / FHFA Issues Proposed Rule on Validation and Approval of Credit Score Models News Release 1033https://www.fhfa.gov/Media/PublicAffairs/Pages/Forms/AllItems.aspxhtmlFalseaspx
FHFA Releases U.S. Mortgage Statistics from the National Mortgage Database2593312/12/2018 5:00:00 AMNews Release<p> <span style="font-family&#58;source sans pro;"><strong>Washington, D.C.</strong> – The Federal Housing Finance Agency (FHFA) today released the first set of national statistics derived from the National Mortgage Database (NMDB®) as a step toward implementing the monthly mortgage market survey public data disclosure required by the Housing and Economic Recovery Act of 2008 (HERA).&#160; FHFA will continue to assess whether additional data may be released that meets the statutory requirements under HERA.</span></p><p> <span style="font-family&#58;source sans pro;">The NMDB contains information for a nationally representative sample of residential mortgages in the U.S.&#160; The select summary statistics from the NMDB describe loan characteristics for various loan groups.&#160; The statistics also describe various loan types, including loan size, borrower credit scores, home values, down payments and other product features.&#160; These statistics provide useful benchmarks for the residential mortgage market. </span></p><p> The data released today supplements FHFA's regular<a href="/DataTools/Downloads/Pages/Monthly-Interest-Rate-Data.aspx"> Monthly Interest Rate Survey</a>&#160;(MIRS), which also provides information on select loans.&#160; The MIRS publications include data on loans more quickly after origination, as the summarized loans are originated in the prior month.&#160; Although the NMDB data statistics require additional time to finalize following origination, the NMDB data statistics are produced using a much larger data sample—and, importantly, a sample that has been randomly selected.&#160; The MIRS data have not been randomly selected.</p><p> <span style="font-family&#58;source sans pro;">Despite the sampling differences, the NMDB and MIRS statistics “overlap&quot; in some of the variables summarized.&#160; This publication and future NMDB data releases will compare trends in select statistics from the various datasets.&#160; The next release of NMDB statistics for the first quarter of 2018 will be in March 2019.</span></p><p> <span style="font-family&#58;source sans pro;">The NMDB, launched in 2012, is a joint effort with FHFA and the Bureau of Consumer Financial Protection (BCFP) and is the first comprehensive repository of detailed mortgage loan information designed to support policymaking and research efforts and to help regulators better understand emerging mortgage and housing market trends.</span></p><p> <span style="font-family&#58;source sans pro;">Link to NMDB statistics for July – December 2017&#58; </span><a href="/DataTools/Downloads/Pages/National-Mortgage-Database-Aggregate-Data.aspx">www.fhfa.gov/nmdbdata</a></p><p> <span style="font-family&#58;source sans pro;"> <img alt="average interest rate on conventional, 30-year, conforming-sized fixed-rate mortgages" src="/Media/PublicAffairs/PublishingImages/Pages/FHFA%20Releases%20U.S.%20Mortgage%20Statistics%20from%20the%20National%20Mortgage%20Database/Average_intrest_rate.png" style="margin&#58;5px;" /> <br> <span style="font-family&#58;source sans pro;"> <font size="3"> <span style="color&#58;black;">The average interest rate on conventional, 30-year, conforming-sized fixed-rate mortgages </span><span style="color&#58;black;">was 4.3 percent in December 2017, up 10 basis points from 4.2 in November 2017.</span></font></span></span></p><p> <span style="font-family&#58;source sans pro;"> <span style="font-family&#58;source sans pro;"> <font size="3"> <span style="color&#58;black;"> <img alt="The average interest rate on conventional, 30-year, conforming-sized fixed-rate mortgages" src="/Media/PublicAffairs/PublishingImages/Pages/FHFA%20Releases%20U.S.%20Mortgage%20Statistics%20from%20the%20National%20Mortgage%20Database/Average_share_conventional.jpg" style="margin&#58;5px;" /> <br> <font face="Georgia"> <font size="3"> <span style="color&#58;black;"> <font face="Georgia"> <font size="3"> <span style="color&#58;black;font-family&#58;source sans pro;">The average share of conventional mortgage loans with loan-to-value ratio greater than 90 percent </span><span style="color&#58;black;"><span style="font-family&#58;source sans pro;">was 26.6 percent in December 2017, down 10 basis points from 26.7 in November 2017.</span><br></span></font></font></span></font></font></span></font></span></span></p>12/12/2018 6:00:58 PMHome / Media / FHFA Releases U.S. Mortgage Statistics from the National Mortgage Database News Release 806https://www.fhfa.gov/Media/PublicAffairs/Pages/Forms/AllItems.aspxhtmlFalseaspx
FHFA Issues 2017 Report to Congress on Guarantee Fees1996312/10/2018 5:00:00 AMNews Release<p> <strong>Washington, D.C.</strong> – The Federal Housing Finance Agency (FHFA) today released its annual report on single-family guarantee fees charged by Fannie Mae and Freddie Mac (the Enterprises).&#160; The Housing and Economic Recovery Act of 2008 requires FHFA to conduct an ongoing study of the guarantee fees charged by the Enterprises and to submit a report to Congress each year.</p><p>Guarantee fees are intended to cover the credit risk and other costs that Fannie Mae and Freddie Mac incur when they acquire single-family loans from lenders.&#160; These include projected credit losses from borrower defaults over the life of the loans, administrative costs, and a return on capital.&#160; The report compares year-over-year 2017 to 2016, and provides data over five years back to 2013. &#160;Significant findings of the report include&#58;</p><ul><li>For all loan products combined, the average single-family guarantee fee in 2017 was unchanged at 56 basis points.&#160; The upfront portion of the guarantee fee, which is based on credit risk, fell one basis point to 15 basis points.&#160; The ongoing portion of the guarantee fee, which is based on the product type, increased one basis point to 41 basis points.</li><li>The average guarantee fee on 30-year fixed rate loans fell by one basis point in 2017 to 59 basis points, while the fee on 15-year fixed rate loans increased by one basis point to 38 basis points.&#160; The fee on ARM loans fell one basis point to 58 basis points.</li><li>In 2017, the Enterprises began using FHFA's Conservatorship Capital Framework (CCF) to calculate the cost of holding capital.&#160; The overall expected profitability of the loan acquisitions was nearly unchanged in 2017 and in-line with the targeted level.&#160; </li></ul> <br> <a href="/AboutUs/Reports/ReportDocuments/GFee-Report_12-10-18.pdf">Link to Report</a>12/10/2018 6:00:38 PMHome / Media / FHFA Issues 2017 Report to Congress on Guarantee Fees News Release The fee on ARM loans fell 835https://www.fhfa.gov/Media/PublicAffairs/Pages/Forms/AllItems.aspxhtmlFalseaspx