Current and Ongoing FMC Projects
Building on our commitment to protect low-income borrowers and support responsible lenders, FMC has launched initiatives in several areas:
- Helping Homeowners by Tackling Mortgage Servicing Head-on
FMC has been engaged by Ford Foundation to examine ways that improved practices in mortgage servicing can increase the number affordable loan modifications for homeowners with distressed mortgages and reduce foreclosures. FMC is investigating innovative engagements with mortgage servicing, working in consultation with National Stabilization Trust, Self Help Ventures Fund, Boston Community Capital, Mercy Housing, National Consumer Law Center, Enterprise Foundation and other trusted national nonprofit intermediaries and advocates as well as an array of special servicers and other industry leaders.
- Analyzing Manufactured Housing Loan Performance and MH Appraisals
FMC is currently supporting I’M HOME (Innovations in Manufactured Homes) and CFED (Corporation for Enterprise Development) in a project to collect and analyze data on the performance of mortgage loans made to the owners of manufactured housing. The project is designed to better understand manufactured home loan performance so that best practices in manufactured housing lending can be broadly understood and shared. A companion study analyzed problems with appraising MH homes and ways to improve valuation to support greater low income homeownership.
- Supporting Affordable Homeownership through New Affordable Manufactured Home Loan Products
FMC is collaborating with ROC USA (Resident Owned Communities) and the Federation of Community Development Credit Unions to build a new secondary market that will purchase and/or credit enhance affordable single family home loans from homeowners in resident-owned parks and fee simple homeownership. The loans eligible for purchase through this program will be underwritten to standards based on an innovative New Hampshire loan program that has been extremely successful in reaching low-income borrowers and maintaining good loan performance.
- Developing a Robust Pricing Analysis Tool
FMC has created a new and comprehensive pricing analysis tool to certify lenders. The tool analyzes consumers’ characteristics and offers information about all loans they qualified for at the time of origination. With this data FMC can re-qualify borrowers by identifying all the alternative loans they would have been eligible for and make comparisons based off lenders’ profit margins and broker and retail pricing. By comparing the pricing of the alternative loans with the actual loan, FMC’s new system can verify the fairness of the actual loans.
- Creating a Historical Loan Pricing Database
FMC laid the foundation for a national database of wholesale loan pricing data that contains time- and geographically-specific information about mortgage prices for a wide range of loan products. This data can be considerably more precise than average national numbers posted by Freddie Mac.