The new federal stress test exception on uninsured straight switches has been one of the most confusing regulatory changes in recent memory. Following its November 21 launch, lenders and mortgage pros were left wondering everything from whether mortgage finance companies were allowed to use the exemption to whether it applied

In a win for lenders and consumers alike, the government is amending the mortgage insurance rules to eliminate its mortgage stress test on low-ratio (a.k.a. "bulk insured") mortgages that switch from a federally regulated lender to any other lender at renewal. The move, which is effective

For a while there, it seemed about as likely as finding a unicorn in a haystack, but now it's confirmed. Mortgage finance companies (MFCs) can accept uninsured straight switches qualified at the contract rate. One of the nation's largest MFCs, First National, announced the move on

There's speculation in lending circles that Monday's Fall Economic Statement might include one or more mortgage policy updates. Lenders have been hoping for two specific default insurance tweaks: