FHA & Ginnie Mae

Browse articles from all of our Newsletters related to FHA & Ginnie Mae.

September 23, 2016 - Inside FHA/VA Lending

Around the Industry

HUD Issues Guidance on Fair Housing Act Protections for People with Limited English Skills. The Department of Housing and Urban Development has issued guidance on how the FHAct applies to claims of discrimination by people who either lack or have poor English communication skills. The guidance is significant because more than 25 million people in the United States do not speak, read or write in English very well, said HUD in a statement issued with the guidance. Nearly 9 percent of the U.S. population is limited in English proficiency. The majority of these people speak Spanish, while the rest are comprised of speakers of Chinese, Vietnamese, Korean, and Tagalog (the main dialect spoken by Filipinos). The FHAct prohibits any overt act of discrimination in the rental or ...

September 23, 2016 - Inside FHA/VA Lending

PACE Guidance Not Reassuring, Too Many Uncertainties, Pitfalls

New FHA guidance for dealing with mortgages with a Property Assessed Clean Energy (PACE) obligation went into effect last week but uncertainty lingers and its full impact remains to be seen, according to an industry attorney. The Department of Housing and Urban Development has issued guidance specifically allowing properties encumbered by a PACE lien to be eligible for FHA mortgage financing for both purchase and refinance loans. The department of Veterans Affairs has issued similar guidance. According to Erika Sonstroem, an attorney with the law firm Bradley Arant Boult Cummings, the PACE industry is touting the guidance in its pitches to lenders as posing no risk to mortgage investors. PACE is a program that lends money to homeowners for home-energy savings projects. It is treated much like a tax lien on a property and is included in the ...

September 23, 2016 - Inside FHA/VA Lending

VA Issues Clarifying Guidance for Manufactured, Mobile Properties

VA Home Loan Guaranty has issued clarification regarding title requirements for manufactured or mobile homes conveyed to the Department of Veterans Affairs. Effective immediately, VA is requiring proof of noteholders’ compliance with the agency’s requirements for guaranteed mobile-home financing. Foreclosure title packages that do not include the required documents will be rejected, the agency warned. Under federal law, a manufactured home must be permanently affixed and classified as real property in the state where it is located. VA will not guarantee financing if the property does not meet the criteria. To ensure that a guaranty claim is fully payable and that the holder has the option to convey the manufactured home to VA, servicers must ensure that home loans with a VA guarantee meet federal requirements. Under the clarified VA guidelines, servicers may submit the ...

September 23, 2016 - Inside FHA/VA Lending

VA Shares Pointers to Help Avoid Delays in Processing COE Requests

The Department of Veterans Affairs has made recommendations to VA lenders and borrowers calling in with questions and problems at VA regional centers to avoid long wait times and have their concerns resolved as quickly as possible. In a recent memo to lenders, the VA Loan Guaranty Service is reporting that many of its regional loan centers (RLC) are being swamped with calls due to record increases in VA originations in recent months. While this suggests that more veterans are using their housing loan benefit than ever before, the large volume of calls to VA has caused long hold times for callers and delayed processing of borrower certificates of eligibility (COE). To cut down on the waiting time, the VA urged lenders and borrowers to consider several things before making the call. First, do not call to check on the status of a COE request if there is no urgent need, like an ...

September 23, 2016 - Inside FHA/VA Lending

HUD Poised to Collect Huge FCA Settlement Funds from Lenders

The Department of Housing and Urban Development is set to receive more than $140 million in settlements with three individual lenders in connection with defective loans they originated with FHA insurance. Freedom Mortgage Corp., M&T Bank, and Land Home Financial Services all reached separate agreements this year with the Department of Justice on behalf of the HUD Inspector General to resolve the allegations. On April 15, Freedom agreed to pay $113 million, in response to charges that “it engaged in certain conduct in connection with its origination, underwriting, property appraisal and quality of certain single-family mortgages insured by FHA.” The disputed forward loans were insured by FHA between Jan. 1, 2006, and Dec. 31, 2011, which resulted in claims submitted to HUD on or before June 15, 2015. HUD incurred substantial losses when it paid claims on the ...

September 23, 2016 - Inside FHA/VA Lending

Liquidity, Net Worth Issues Persist But Nothing Ginnie Can’t Manage

Ginnie Mae continues to wrestle with issuers lacking liquidity and net worth although the number of such cases has gone down significantly, thanks to tight oversight, according to the agency’s top counterparty risk officer. Briefing participants at this year’s Ginnie Mae summit in Washington, DC, Zack Skochko, director of counterparty risk, reported that some issuers are still struggling to comply with Ginnie Mae’s liquidity and net worth requirements.A number of small issuers failed their liquidity and net worth audits this year by not maintaining the minimum $1 million cash or 10 basis points of outstanding Ginnie securities required to participate in the agency’s mortgage-backed securities program. Ginnie Mae also requires issuers to meet a minimum net worth of $2.5 million plus 35 bps of the issuer’s total effective single-family obligations The requirements were designed to ensure that the ...

September 23, 2016 - Inside FHA/VA Lending

VA Originations Stayed Strong in 2Q16 as Volume Rose 30 Percent

VA lenders recorded a strong first half for 2016, thanks to a substantial boost in production in the second quarter, agency data show. VA guarantees on purchase and refinance mortgages totaled $83.5 billion for the first six months, as lenders made a strong second-quarter push that brought production up by 29.9 percent. Streamlined refinancing, also known as Interest Rate Reduction Refinance Loans (IRRRLs), comprised a hefty portion of total VA originations – 21.7 percent. VA has been particularly strong in the refinance segment over the last six months, racking up $44.3 billion in total refi volume, far exceeding FHA’s $36.4 billion and private mortgage insurers’ $21.6 billion. (see IFHA/VA Lending, 8/9/16.) Overall, FHA remained the top mortgage insurer in the government-backed lending market with $123.0 billion, compared to VA’s $84.8 billion. Loans with primate MI totaled $102.7 billion ... [ 1 chart ]

September 23, 2016 - Inside FHA/VA Lending

Streamline Refi Segment Causing Problems for VA, Ginnie Investors

The Department of Veterans Affairs is working on a change to its existing streamline refinancing policy to address a problem that is giving VA and Ginnie Mae the fits. Under the VA’s qualified-mortgage rule, a VA borrower must wait six months and show six months’ worth of mortgage payments before they can refinance into an IRRRL (Interest Rate Reduction Refinance Loan) and take advantage of the lower rate. However, it seems not all VA lenders are adhering to the rule and that a good number are refinancing veterans into IRRRLs even before the mandatory seasoning period ends for fear interest rates might rise and the borrower might not benefit from the lower rate. “I’ve redone the numbers in 20 different directions on how much a borrower would save if they had to wait two more months and the rate went up a quarter of a point because they lost those two months ...

September 23, 2016 - IMFnews

Some Issuers Still Failing Ginnie Mae’s Net Worth and Liquidity Requirements, but…

Ginnie expects issuers to actively participate by issuing, servicing or subservicing agency MBS…

September 23, 2016 - IMFnews

Foreign Investors, Others Beef Up Their Investment in Agency MBS

According to Treasury Department reports, overseas investors held $821.3 billion of Fannie, Freddie and Ginnie MBS at the end of June, a 5.0 percent increase from March.

September 20, 2016 - IMFnews

MountainView, Prestwick Roll Out New MSR Auctions

As rates increase, more deals are hitting the market...

September 19, 2016 - IMFnews

Phoenix Flow Deal Could Yield $3 Billion in Product

The identity of the seller was not revealed in the offering circular except to say the company is “well capitalized.”

September 19, 2016 - IMFnews

Ginnie Chief Tozer Lays it on the Line About MSR Values, Liquidity

Senior Vice President of Issuer and Portfolio Management Michael Drayne said recently the revised acknowledgement agreement could be ready by the end of September.

September 14, 2016 - IMFnews

A Key Concern at Ginnie Mae: Nonbanks with Too Much Net Worth Tied Up in MSRs

Too many nonbanks have their net worth tied up in servicing rights. And that’s a problem…

September 14, 2016 - IMFnews

Regions Bank Will Pay Uncle Sam $52.4 Million to Resolve FCA Complaints

To date, FCA/FHA settlements have netted the federal government roughly $5.0 billion.

September 14, 2016 - IMFnews

When it Comes to Refis, VA-Backed Mortgages Lead the Pack – By Far

There is no clear explanation as to why VA rates are lower than the competition, but some industry participants, including Tom Piercy of Incenter Mortgage Advisors, speculate prepayments might be the reason.

September 13, 2016 - IMFnews

Ginnie Mae Issuance Hits A Yearly High in August

Despite shying away from FHA production, Wells Fargo remained a top Ginnie issuer, closing August with $3.83 billion and ranking third overall.

September 12, 2016 - IMFnews

RHS Ready to Cut Upfront Funding and Servicing Fees

Another reason for the cut in fees: rural housing delinquencies and foreclosures are at record lows.

September 9, 2016 - Inside FHA/VA Lending

Around the Industry

Tennessee Lender Agrees to $70 million Settlement to Resolve Alleged FHA Violations. Franklin American Mortgage of Franklin, TN, has agreed to pay the federal government $70 million to resolve allegations of failing to comply with FHA requirements. Specifically, the direct endorsement lender allegedly engaged in improper underwriting of FHA loans between Jan. 1, 2006, and Dec. 31, 2012, which later resulted in submission of claims and substantial losses to the FHA insurance fund. Franklin entered into a settlement agreement with the Department of Justice and the Department of Housing and Urban Development’s Inspector General. As part of the settlement, Franklin acknowledged “it engaged in certain conduct in connection with its origination, underwriting, and quality control of certain single-family residential mortgage loans insured by FHA.” The settlement was neither an admission of ...

September 9, 2016 - Inside FHA/VA Lending

RHS to Cut Upfront Funding and Servicing Fees to Spur Lending

Effective Oct. 1, 2016, the U.S. Department of Agriculture’s Rural Housing Service will reduce the one-time upfront funding fee for single-family housing guaranteed loans to spur rural home-loan financing. The RHS will cut the funding fee from the current rate of 2.75 percent of the loan amount to 1.0 percent. The agency notified lenders of the change last June. In addition, the fee for servicing USDA-guaranteed loans will decrease to 0.35 percent from 0.50 percent. That comes to about $30 per month per $100,000 in loan balance. The servicing fee is paid in 12 equal installments and rolled into the monthly mortgage payments. The RHS has raised both fees a number of times during the past several years to maintain the section 502 Single Family Housing program, which does not require borrowers to make any downpayment, and to avoid congressional appropriation. Last year, the RHS raised its upfront funding fee for a purchase loan, from 2.00 percent to 2.75 percent. Another reason the RHS cited for the fee reduction is that rural housing delinquencies and foreclosures are at historic lows.

September 9, 2016 - Inside FHA/VA Lending

USDA Issues Guidance on Short Sale, REO Property Purchases

The U.S. Department of Agriculture has issued guidance regarding voluntary short sales as well as the sale of real estate-owned properties in certain states. RD allows voluntary short sales by borrowers as well as the sale of REO properties at a discount, particularly to nonprofits and public entities providing transitional housing to reduce homelessness. For short sale acquisitions, the RD Customer Service Center (CSC) approves short sales for centralized states, according to the new guidance. Voluntary sales by borrowers to organizations may also qualify for non-program (NP) assumption financing. NP loan-assumption terms can be up to 30 years, the guidance stated. On the other hand, decentralized states are responsible for voluntary short sales and disposition of REO properties within their respective inventories, the guidance clarified. Qualified nonprofits and other entities that purchase REO properties for ...

September 9, 2016 - Inside FHA/VA Lending

FHA Seeks Comment on Proposed Update of 203(k) Consultant Fees

The FHA is seeking comment on proposals for revising the schedule of fees an agency-approved consultant may charge on a Section 203(k) property repair and rehabilitation mortgage. The agency wants public comment on whether fees charged by FHA 203(k) consultants should be based on the total cost of repairs, as they are currently, or on other metrics. Consultants charge varying fees on a standard 203(k) mortgage and a limited 203(k) mortgage. The standard FHA repair/rehab mortgage is designed for remodeling, rehabilitation and repairs that involve structural or more complex work that will cost more than $5,000. The limited 203(k) home loan is only for minor remodeling and non-structural repairs. An FHA-approved consultant is required for all standard 203(k) mortgages but not necessarily for a limited 203(k) home loan. FHA-approved 203(k) consultants who are placed on ...

September 9, 2016 - Inside FHA/VA Lending

IG Audit Finds Weak Spots in HUD Mortgage Data, Claims Systems

An internal compliance audit has uncovered weaknesses in the FHA’s information systems that could expose the agency to hacking. The Department of Housing and Urban Development’s Inspector General recently issued an audit report indicating that FHA’s Single Family Insurance System (SFIS) and Single Family Insurance Claims Subsystem could be in danger of security breaches. However, the report withheld details of the audit, saying the findings were not for public disclosure. The report explained that the audit was part of the internal-control assessments required for the FY 2015 financial statement audit under the Chief Financial Officer’s Act of 1996. The audit’s objective was to provide an assessment of SFIS control compliance with HUD’s information-technology policies and federal IT system security and financial management requirements. The SFIS contains information on FHA borrowers, including ...

September 9, 2016 - Inside FHA/VA Lending

CA Lender Exposed MMIF to Higher Risk, Ordered to Indemnify HUD

A California FHA lender could face monetary penalties totaling $242,828 for deficient mortgage underwriting and exposing the FHA insurance fund to increased risk of loss and fraud. A Department of Housing and Urban Development inspector general’s audit of Sun West Mortgage Co. of Cerritos, CA, also alleged unauthorized use of foreign staff in another country to “pre-underwrite” FHA loans. The audit was triggered by a complaint the IG Office received in November last year alleging that Sun West, an approved FHA lender since 1980, was not underwriting FHA loans properly. In addition, the complaint alleged that Sun West was having the loans pre-underwritten by a company in another country, in violation of HUD rules. Neither the company nor the country was identified in the audit report. The complaint further alleged that employees at Sun West shared user identification numbers for ...

September 9, 2016 - Inside FHA/VA Lending

USDA Securitization Rose in 2Q16, Rural Purchase Loans Dominate

Issuers delivered $8.1 billion of rural mortgage loans with a U.S. Department of Agriculture guarantee into Ginnie Mae pools during the first six months of 2016, according to an analysis of Ginnie data. Securitized USDA mortgages accounted for 1.3 percent percent of total MBS issued by Ginnie Mae during the period and comprised 2.5 percent of total loans originated during the six-month period. USDA-backed loan deliveries to Ginnie Mae in the second quarter rose 9.8 percent from the previous period. Year-over-year, issuance of MBS backed by rural loans fell 3.8 percent. USDA-backed mortgages require no downpayment. Over the first six months, the average credit score for rural borrowers was 688.1 and the average debt-to-income ratio was 34.9 percent. An estimated 93.2 percent of USDA loans originated during the period were purchase mortgages, 1.0 percent were refinances and the ... [ 2 charts ]

September 9, 2016 - Inside FHA/VA Lending

FHA/VA: Financing of Choice for Purchase Borrowers in 13 States

Homebuyers in two housing markets encompassing 13 states relied more on FHA and VA than other types financing, according to a new industry study of new single-family homes started in 2015. A study by the National Association of Home Builders found, among other things, that government-backed purchase lending and other forms of non-conventional mortgage financing remained elevated in 2015. For example, homebuyers in the South Atlantic and West South Central regions favored FHA and VA loans over other types of home-purchase financing. States in the South Atlantic region include Delaware, Florida, Georgia, Maryland, North Carolina, South Carolina, Virginia, and West Virginia. Washington, DC, is also in this region. West South Central states are comprised of Arkansas, Louisiana, Oklahoma and Texas. Together, the two regions accounted for more than 26 percent and 21 percent of the ...

September 9, 2016 - Inside FHA/VA Lending

Ginnie Mae MBS Issuance Up in August as Upward Trend Continues

Ginnie Mae issued $46.5 billion of single-family mortgage-backed securities in August, up slightly from July, according to an analysis of Ginnie data. Single-family MBS monthly issuance in August was the highest monthly volume so far this year. Total issuance also was up 12.3 percent from the same month last year., Strong purchase and refinance originations in the second quarter helped push production in the third quarter. Although purchase loans with private mortgage insurance outpaced gains in FHA and VA loans in the second quarter, deliveries to Ginnie so far appear to indicate a strong third quarter. Meanwhile, VA volume has been fueled largely by refinance activity over the past few years and does not appear to be letting up. PennyMac and Freedom Mortgage battled for first place with $4.35 billion and $4.34 billion, respectively, in MBS issuance in August. Despite cutting back on its ... [1 chart]

September 9, 2016 - Inside FHA/VA Lending

VA Note Rate Lower than FHA, Private MIs; VA Refis Dominate

VA refinance mortgages accounted for the biggest share of total insured refis during the first six months of 2016, according to an Inside FHA/VA Lending analysis of agency refi data. On a monthly basis, VA refi totals exceeded refis with FHA and private mortgage insurance, peaking at $9.3 billion (58.1 percent of total VA originations) in April. Over the six-month period, the refi share of VA loans securitized by Ginnie Mae averaged 52.3 percent, compared to 29.6 percent for FHA and 21.0 percent for private MI loans securitized by Fannie Mae and Freddie Mac. In terms of total volume, however, FHA held a commanding lead, $123.0 billion, over private MIs ($102.7 billion) and VA ($84.8 billion). Interestingly, the average interest rate on VA refi loans, 3.6 percent, over the six-month period was lower than FHA’s and private MIs’ note rates of 3.9 percent and 4.0 percent, respectively. There is no clear ... [1 chart]

September 9, 2016 - IMFnews

What We’re Hearing: A Shortage of Mortgage Underwriters? / In Demand: Top Mortgage Dogs / Record Originations at Some Shops – Thanks to Brexit / A $600 Billion Quarter? / Impac Returns to the Well / Who Might MBA’s Dave Stevens Vote For? (Follow the Money)

Meanwhile, one mortgage executive told us that earlier in the year Impac approached his shop about a sale. This executive, who did not want his company identified, turned Impac down…

September 9, 2016 - IMFnews

Agency MBS Issuance Up Again in August – Six Straight Months of Increases

Fannie, Freddie and Ginnie issued a combined $138.25 billion of single-family MBS in August, their strongest aggregate monthly output since July 2013.

September 8, 2016 - IMFnews

Short Takes: Time to Bottom Fish in MSRs? / PennyMac and BofA Increase Deal Ceiling / Trade Groups Complain to the CFPB / More Ocwen Legal Headaches

More legal headaches for Ocwen? Looks that way...

September 6, 2016 - IMFnews

Incenter Mortgage Advisors Completes Trade of $8.87B Ginnie MSR Package

IMA’s Piercy noted that deals can get done – as long as the seller is realistic about pricing.

September 2, 2016 - IMFnews

HUD Offers $1.7 Billion of NPLs; Auction Marks First ‘Set-Aside’ for Non-Profit Bidders

HUD has been criticized by consumer advocates who feel the agency's NPL auctions have unfairly benefitted private equity firms and hedge funds at the expense of troubled borrowers.

September 2, 2016 - IMFnews

HUD Updates Single-Family Property Disposition Regulations

The codified changes include limiting the provision of settlement-cost assistance to owner-occupants.

September 1, 2016 - IMFnews

NFHA Piles on Foreclosure-Related Accusations Against BofA. Zika Allegations Too. BofA Disputes the Charges

The consumer advocate charges that BofA is exacerbating the risk of spreading the Zika virus in South Florida…

August 30, 2016 - IMFnews

The Six-Month Tally: FHA Production Up 8.4 Percent, VA by Almost 13 Percent

It was the highest three-month total for government-insured lending on record, although private mortgage insurance did more business in the second quarter than either FHA or VA…

August 29, 2016 - IMFnews

MBA Issues Warning on Lenders Getting Involved in Downpayment Assistance Programs

The FHA and the Inspector General of HUD currently are at odds over permissible sources of single-family downpayment assistance offered through housing finance agencies.

August 26, 2016 - Inside FHA/VA Lending

Around the Industry

Mortgage Company President Charged with Defrauding Ginnie Mae. Robert Pena, president and founder of the now-defunct Mortgage Security Inc., was charged in federal district court in Boston for allegedly bilking Ginnie Mae out of nearly $3 million. MSI was an approved participant in the Ginnie Mae mortgage-backed securities program, pooling eligible single-family mortgages and selling the securitized products to investors. The firm also serviced the underlying loans. In 2011, Pena allegedly began diverting borrower payments and huge loan-payoff amounts into secret accounts, which he used to fund personal and business activities. Likewise, he is said to have funneled borrowers’ escrow funds and mortgage-insurance premiums into other personal accounts. In total, Pena pocketed $3 million due Ginnie Mae, which had to pay investors whose investments it had guaranteed, according to the ...

August 26, 2016 - Inside FHA/VA Lending

Homeowners Allege Discrimination In Distressed-Loan Sales Program

African-American homeowners in New York City are seeking certification of a class action alleging that the government’s distressed-loan sale program discriminates against black homeowners. The suit alleges that black FHA homeowners in default are disproportionately affected by the Department of Housing and Urban Development’s note sale program and the subsequent “predatory” mortgage servicing. HUD Secretary Julian Castro, FHA Commissioner Ed Golding, Caliber Home Loans and U.S. Bank Trust were named defendants in the lawsuit filed in the U.S. District Court for the Eastern District of New York. The defendants’ business practices allegedly violated the plaintiffs’ due-process rights as well as the Fair Housing Act. Under the note sale program, delinquent FHA mortgages are pooled and auctioned off to the highest bidder. According to the plaintiffs, the bidders are usually private-equity firms or ...

August 26, 2016 - Inside FHA/VA Lending

Agency Updates Single-Family Property Disposition Regulations

The Department of Housing and Urban Development has issued a final rule aimed at improving its single-family property disposition program and minimizing losses to the FHA Mutual Mortgage Insurance Fund. The rule consolidates and reorganizes agency regulations pertaining to asset disposition to better reflect industry standards and enable HUD to get the greatest value for its real estate-owned properties. The goal of the asset disposition program is to shrink HUD’s REO inventory and at the same time reduce MMIF losses. The final rule mostly mirrors the proposed rule HUD published for comment in October last year. The department said it has made no substantive changes to the proposed draft. The codified changes include limiting the provision of settlement-cost assistance to owner-occupants. The final rule eliminates HUD’s obligation to pay the broker’s sales commission and clarifies that settlement-cost assistance is only available to owner-occupant purchasers and not investor purchasers. In addition, the ...

August 26, 2016 - Inside FHA/VA Lending

Wait Time for Evaluating, Deploying Home-Retention Options Reduced

The FHA has announced new streamlined procedures to help delinquent homeowners avoid foreclosure and stay in their homes. The agency is revising loss-mitigation procedures servicers use when evaluating and choosing the best home-retention options for delinquent borrowers by reducing waiting time for results. The new streamlined procedures are designed to enhance servicers’ ability to evaluate foreclosure-avoidance alternatives, especially for the FHA-Home Affordable Modification Program (FHA-HAMP). Specifically, FHA will require servicers to convert successful three-month trial modifications into permanent modifications within 60 days instead of the average four to six months. Borrowers who have three missed mortgage payments would be able to opt for a partial claim to bring their arrearages current versus the previous four-month minimum. In addition, the FHA will eliminate the ...

August 26, 2016 - Inside FHA/VA Lending

HUD-IG Hammers Title II Lender for Poor Implementation of FHA HAMP

An FHA Title II lender in Atlanta is in trouble with the Department of Housing and Urban Development’s inspector general for not implementing FHA’s Home Affordable Modification Program (HAMP) in accordance with HUD’s requirements. As a result, HUD paid more than $1.1 million for 138 loans that were not eligible for modification under the FHA-HAMP. The lender, Georgia Housing and Finance Authority, could be facing $1.42 million in indemnifications and reimbursements because of its actions. The state housing finance agency provides low- and moderate-income people safe and affordable rental housing, and acquires and maintains housing for homeownership. Proceeds from the sale of mortgage revenue bonds, as well as federal and state allocations, fund its housing programs. GHFA also uses bond proceeds to purchase mortgages, which are serviced by mortgage affiliate. The cash flow from the ..

August 26, 2016 - Inside FHA/VA Lending

Groups Ask FHA, VA to Set Aside PACE Guide, Allow Comment Period

Major industry trade groups are asking FHA and VA to suspend proposed guidelines for energy-improvement loans and give stakeholders an opportunity to comment. In a joint letter, 11 trade groups warned that the proposed agency guidelines regarding Property Assessed Clean Energy (PACE) loans raises serious concerns that must be resolved before implementation of any PACE guidance. Prior to the issuance of the new guidelines, both FHA and VA prohibited the financing or refinancing if there was a lien other than the FHA-insured or VA-guaranteed mortgages. PACE programs are available in 19 states but most are in California. They provide financing for home improvements and clean-energy upgrades that would result in more efficient use of water and electricity, and ultimately savings for homeowners. The PACE obligation is repaid through a property-tax assessment, which takes a ...

August 26, 2016 - Inside FHA/VA Lending

FCC Issues TCPA ‘Exemption’ Rule, Lawyers Baffled by Rule’s Language

The Federal Communications Commission has issued a baffling final rule restricting the way servicers can collect on or service student loans, mortgages and other debts owed to the federal government. Specifically, the rule implements a key provision in the Bipartisan Budget Act of 2015 amending the Telephone Consumer Protection Act to exclude robocalls from the TCPA consent requirement if they are made solely to collect a debt owed to or guaranteed by the federal government. The TCPA generally requires a caller to obtain “prior express consent” from the call recipient before making a telemarketing call or an auto-dial call to the recipient’s landline or cell phone. However, the mortgage industry raised concerns that TCPA’s consent requirement could create potential liability for important servicing calls that could help homeowners save their homes, which prompted Congress to pass the Budget Act amendment. Last month, the FCC specifically excluded the federal government from the TCPA’s consumer protections by ruling that the government is not a “person” subject to the TCPA. Here is where the FCC rule gets confusing. commission is authorized to adopt rules to “restrict or limit the number and duration” of any wireless calls to collect debt owed to the federal government.”

August 26, 2016 - Inside FHA/VA Lending

HUD Urged to Pursue $21.5 Million In Uncollected Partial Claims

A new audit report from the Department of Housing and Urban Development’s inspector general recommended that the agency continue its efforts to collect millions of dollars in partial claims that came due during fiscal year 2015. According to a HUD IG report, the department left uncollected approximately 1,361 partial claims, worth about $21.5 million. The IG discovered the oversight during an audit of HUD’s partial claim collections. The IG reviewed a statistical sample of 135 of 10,561 partial claims associated with FHA loans that terminated in FY 2015. “HUD had not collected 36 of the claims that should have been collected,” the report stated. “We used this result to project that a total of 1,361 partial claims were not collected.” The claims were never returned to the FHA mortgage insurance fund, as required by agency rules, to strengthen FHA solvency, the report said. A partial claim is a loss ...

August 26, 2016 - Inside FHA/VA Lending

Lenders Need to Seek Legal Advice Before Using FHA’s DPA Programs

The Mortgage Bankers Association strongly urged the Department of Housing and Urban Development and the FHA to issue authoritative guidelines for lenders participating in state and local housing finance programs that rely on premium pricing to fund downpayment assistance. In a recent letter to members, the MBA recommended that FHA lenders “tread carefully” and seek legal advice until HUD provides more definitive guidance on downpayment assistance and premium pricing. Lenders should consider carefully whether and when to participate in DPA programs from housing finance agencies that rely on premium-pricing mechanisms, the letter said. The MBA said it would continue to press HUD for clarification on this contentious issue. The FHA and HUD’s inspector general are currently at odds over permissible sources of single-family downpayment assistance offered through housing finance agencies. Although the ...

August 26, 2016 - Inside FHA/VA Lending

Purchase Lending Fires Up FHA in First Half, Refis Push VA Volume

FHA saw a modest rise in originations midway through 2016 compared to the same period last year, but VA did a lot better with a double-digit increase in loan production, according to an analysis of Ginnie Mae data. Lenders delivered $123.0 billion of FHA-insured loans to Ginnie pools during the first half of 2016, up 8.4 percent from the previous year. FHA’s midyear production was driven by a surge in purchase-mortgage lending in the second quarter, which also pushed volume higher for VA as well as conventional-conforming mortgages. Government-backed lending rose 32.3 percent from the first quarter to approximately $131.0 billion in second-quarter originations, according to Inside Mortgage Finance, an affiliate publication of Inside FHA/VA Lending. It was the highest three-month total for government-insured lending on record, although private mortgage insurance did more business in the ... [2 charts]

August 22, 2016 - IMFnews

Short Takes: Will Ocwen Come Roaring Back? / A 29 Percent Decline in MSR Contracts / Finally, A Stock Deal / HUD Left Money on the Table / A New Director for Altisource

Is Ocwen's share price extremely undervalued?

August 22, 2016 - IMFnews

Fannie Reclaims (Some of the) Share it Lost in First-Time Homebuyer Market

By itself, the FHA insured 37.1 percent of first-timer business in the first half of 2016…

August 19, 2016 - IMFnews

Phoenix Selling Flow MSR Package that Could Yield $4.8 Billion

Meanwhile, MountainView Servicing Group is selling a $1.9 billion Fannie Mae/Freddie Mac bulk MSR portfolio…


After the November elections, how long will it take for a new Congress and White House to pass GSE reform legislation?

I’m confident a bill will be passed the first year.
2 to 3 years. GSE reform is complicated.
Sadly it won’t happen in a Clinton or Trump first term.
Not in my lifetime.

vote to see results
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