MBA Statement on FHFA Updates on Loan Repurchases, Appraisals, and Pricing

WASHINGTON, D.C. (October 28, 2024) — MBA’s President and CEO Bob Broeksmit, CMB, issued the following statement on today’s Federal Housing Finance Agency (FHFA) announcements on loan repurchases, appraisals, and pricing at MBA’s 2024 Annual Convention and Expo:

“MBA has been a leading industry voice in seeking effective alternatives to loan repurchase requests and appreciates the ongoing, constructive engagement with FHFA, Fannie Mae, and Freddie Mac over the past few years. Expanding Freddie Mac’s pilot program is another important step toward encouraging high-quality underwriting and eliminating performing loan repurchases.

“We also support the expansion of appraisal waivers, which will lower costs for moderate-income first-time buyers.

“A 60-day advance notice for some guarantee-fee increases is a response to our concerns and is a welcome development that will allow lenders to better manage their pricing strategies and loan pipelines. We have long called for increased pricing transparency and believe more conversations are needed to better balance who bears the risks of pricing volatility between the primary market and the GSEs.

“MBA thanks Deputy Director Tagoe for addressing our members on these important issues as well as indicating more is to come on property insurance costs and availability.”