The mortgage industry largely supports changes to the loan-level price adjustment (LLPA) matrix but remains divided on priorities, with a full overhaul unlikely amid a potential stock offering of Fannie Mae and Freddie Mac.
Clifford Rossi, academic director of the Smith Enterprise Risk Consortium at the University of Maryland, pushes a merger as solution to avoid a race to the bottom.
In the debate over whether Fannie Mae and Freddie Mac should merge, the Mortgage Bankers Association (MBA) has remained consistent: “We don’t think that would be a good idea,” chief economist Mike Fratantoni said.