The Federal Housing Finance Agency recently signaled the conclusion of the mortgage servicing rights (MSR) financing pilot program for Fannie Mae and Freddie Mac, drawing praise for community bankers who questioned the agency’s authority to enact such a program in the first place.
The MSR pilot began in 2018 to provide financing to non-bank servicers to enable them to help account for a growing percentage of the overall servicing portfolio of the government-sponsored enterprises.
Learn more about the initiative and why community bankers objected to it.