End of Pandemic- Related Underwriting Restrictions Near In other news regarding the mortgage powerhouses, there seems to be a slow trend towards pre-COVID underwriting standards for lenders to look forward to in the coming months. A return to pre-COVID credit parameters and the roll- back of debt service reserves signal the approaching end of pandemic-related underwriting restrictions. Still, even with these changes taking place, lenders shouldn’t celebrate too early, as the underwriting updates seem to also usher in less favorable pricing. The two things aren’t directly correlated, of course. Actually, the $70 billion per-GSE volume cap announced earlier this year is the true culprit. The cap, already much lower than that of the previous year, puts some serious limitations on how much volume each of the GSEs can purchase this year. For reference, in 2020, Fannie bought $76 billion and Freddie purchased over $82 billion in multifamily loans.
THE $70B PER- GSE VOLUME CAP I S THE TRUE CULPR IT OF LESS FAVORABLE PR I C I NG .
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