GSEs open door to buying some mortgages in forbearance

In today’s Daily Download episode, HW+ Managing Editor Brena Nath discusses the Federal Housing Finance Agency’s announcement that Fannie Mae and Freddie Mac will now begin buying some mortgages that are in forbearance. Citing the need to keep the mortgage market “working for current and future homeowners during these challenging times,” the FHFA announced Wednesday that it is allowing the GSEs to buy loans that go into forbearance within the first month.

Under the GSEs’ current policies, Fannie and Freddie do not buy loans in forbearance. But given the unprecedented rise in forbearance due to the coronavirus, today’s action lifts that restriction for a limited period of time and only for mortgages meeting certain eligibility criteria, the FHFA said in a statement.

Following the main story, HousingWire Digital Producer Alcynna Lloyd covers the Senate’s approval of additional funding for the nation’s small-business loan program, the FHFA’s home price index, which indicates an uptick in home prices for the month of February, and the Mortgage Bankers Association’s weekly applications survey, which reported a retreat in mortgage application volume last week

The Daily Download examines the most captivating articles reported by the HousingWire newsroom. Each afternoon, HousingWire provides its readers with a deeper look into the stories that are not only chronicling the biggest announcements within the housing finance industry but are also helping Move Markets Forward. Hosted by the HW team and produced by Alcynna Lloyd.

HousingWire articles covered in this episode:

• Fannie Mae, Freddie Mac will begin buying some mortgages that are in forbearance
• Senate approves additional funding for small-business loan program
• Houses prices gained 5.7% in February, FHFA says
• Mortgage application volume dipped last week, MBA says