Wuh gine on and welcome to the Metz Market Minute for the Chrisman Commentary.
Updates: Some good news to start our week. We saw rates fall to 6.23%, down 7BPS from last week and our third straight week moving in the right direction. We saw pending sales bump up and mortgage applications up almost 8%, with purchases up 10%.
The big news started with a joint news release from FHFA and HUD announcing their plans in the credit space.
HUD Ahead: Secretary Scott Turner announced HUD will be moving forward with both VantageScore and FICO 10T. He gave no exact timeline, but suggested it would be over the next few months.
FHFA & FICO: Mr. Pulte announced that they would be moving forward immediately with Vantage, and that they had already completed 10 million dollars worth of loans using the Vantage product and Freddie. FICO 10T will follow down the road.
Fannie & Freddie Follow: Fannie and Freddie both released news updates and seller guides confirming. There's not much in the way of details yet, other than "reach out to your rep if you're interested." No LLPA updates, no guidelines or guidance. There's either 20 or 21 or 23 lenders that are in the initial pilot group, but even they supposedly don't know they're accepted in it yet. The only two confirmed are those that were named in Pulte's release, Penny Mac and Rocket.
FICO's New New Pricing: FICO announced that they'll release their 10T for $1 with a $65 closed loan fee. For a tri-merge and with 70% of applications being joint, that would still be almost $280 in bundled FICO costs for a closed loan.
That's the market in a minute, have a great week.