Testimony from four government agencies regarding a proposed government-sponsored enterprise regulation overhaul has sent the mortgage market into a tailspin, with the Fannie Mae 10-year benchmark widening to its highest level ever recorded.
While much of the hoopla in the market was in reference to the testimony of Gary Gensler, undersecretary of the Department of Treasury for domestic markets, the testimonies of three other prominent players in the market generally went overlooked.
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FICO announced it will maintain its mortgage industry price for credit scores through tri-merge resellers at $10 for members of its Preferred Program.
The Treasury official's comments increased the price of the government-sponsored enterprises' stock even though he indicated there would be no near-term reform.
Persistently high mortgage rates will shrink securitization volume by dampening home sales and pushing more buyers toward all-cash purchases.
Fannie, Freddie and Ginnie loan eligibility now rests on AUS findings, with scores kept for pricing. KBW cut UWM's price target to $1.50 as it launches a $400M rights offering.
While the three largest lenders now offer VantageScore, Bank of America Securities says two agency pulls boosts consumers scores, no matter which model.
