General World News

Agency loan-repurchase strategy sparks pushback

Independent mortgage banks have been coping with a still-surging wave of loan-repurchase requests from Fannie Mae and Freddie Mac that represents yet another threat to lenders’ already stretched balance sheets.

Much of the problem stems from the huge volume of low-rate loans originated in 2020 and 2021 at a time when the industry was continuously working to build capacity to deal with the explosive origination growth. That capacity issue, industry experts contend, resulted in a higher rate of underwriting errors than in more normal times that the agencies, Fannie Mae and Freddie Mac, are still uncovering as part of their ongoing quality-control checks — sometimes months or details ⇒

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