Mortgage Buybacks

Browse articles from all of our Newsletters related to Mortgage Buybacks.

April 17, 2015 - Inside FHA/VA Lending

First Tennessee, DOJ Reach Interim Agreement on FHA-Related Claims

First Horizon National Corp. has announced an agreement in principle with the federal government to settle potential claims related to the underwriting and origination of FHA-insured mortgages during the run-up to the financial crisis. Disclosed in a regulatory filing, the agreement between First Tennessee Bank and the Department of Justice and the Department of Housing and Urban Development covers FHA loans originated from 2006 through 2008, which have gone to claim ...


April 10, 2015 - Inside The GSEs

GSEs Release QC Measures Intended to Reduce Repurchases

Fannie Mae and Freddie Mac released quality control measures to their customers last week that they said will increase transparency and help lenders reduce the amount of problematic loans. Both GSEs are more open to repurchase alternatives and have witnessed a decrease in the number of deficient loans. “Mortgages today are certainly of the highest quality as validated by our QC reviews,” Freddie noted in the letter. Since 2013, the defect rate of a random sampling of performing loans has been 1.4 percent, its lowest, even as the level of QC files increased. Fannie said that the quality of originations has improved, resulting in fewer loans being deemed ineligible by the GSE. As of the end of 2014, 0.33 percent of the single-family loans....


April 10, 2015 - Inside Mortgage Trends

GSEs Stress Ways Lenders Can Prevent Buybacks

Repurchase requests on new production are few and far between, according to the government-sponsored enterprises. Fannie Mae and Freddie Mac both recently issued reviews of their quality control processes, noting that lenders have plenty of tools to help ensure loan quality and avoid buybacks. Carlos Perez, a senior vice president and chief credit officer for single-family business at Fannie, said that as of the end of 2014, 0.33 percent of the single-family ...


April 10, 2015 - Inside Mortgage Trends

Bank Mortgage Repurchases Spiked in 4Q14

Banks and thrifts reported a 10.3 percent increase in mortgage repurchases and indemnifications during the fourth quarter of 2014 compared with the previous quarter, according to an Inside Mortgage Trends analysis of call-report data. Despite the late-year uptick, 2014 still ranked as the most benign for the industry since banks began reporting repurchases in 2008. Institutions repurchased or made indemnifications totaling just $4.25 billion ... [Includes one data chart]


April 3, 2015 - Inside MBS & ABS

Fannie Working With Bank of America on Different Fronts But New MBS Isn’t Part of It, At Least Not Yet

At least three years have passed since Bank of America stopped selling new purchase-money loans into Fannie Mae securities, a drought that has benefitted at least one party: Freddie Mac. According to new figures compiled by Inside MBS & ABS, in the first quarter of 2015 BofA sold $9.57 billion of mortgages into Freddie securities, beating out Wells Fargo ($8.194 billion), which traditionally has ranked first in sales to both government-sponsored enterprises. Then again, there is...


March 27, 2015 - Inside The GSEs

GSE Buyback Activity Focused On Newer, Performing Loans

Fannie Mae and Freddie Mac continue to turn their focus in loan-quality reviews to more freshly originated mortgages, the vast majority of which are current. A new Inside The GSEs analysis of disclosures made by the GSEs to the Securities and Exchange Commission shows that most of the lender repurchases made in 2014 continued to be associated with older, pre-crisis loans. But the biggest volume of pending and unresolved buyback demands were tied to loans securitized in 2013 and 2014. Sellers repurchased or provided indemnification on some $4.046 billion of mortgages during 2014, the disclosures reveal. They were split roughly evenly between Freddie ($2.031 billion) and Fannie ($2.014 billion)...[includes exclusive chart]


March 20, 2015 - Inside FHA/VA Lending

Around the Industry

Loan Modification Trial Payment Plans for Forward Mortgages. The Department of Housing and Urban Development has announced requirements for trial plan duration, required signatures, and reporting for trial payment-plan agreements, and the conditions under which FHA deems a TPP to have failed.Lenders must implement the requirements in Mortgagee Letter 2015-07 for all TPPs offered to borrowers on or after June 1, 2015. FHA Publishes Additional Sections of HUD Single-Family Policy Handbook. The FHA has published additional sections for the SF Handbook, including the following: Doing Business with FHA – Lenders and Mortgagees Doing Business with FHA – Other participants in FHA Transactions – Appraisers; Quality Control, Oversight and Compliance – Lenders and Mortgagees; Quality Control Oversight, and Compliance – Other Participants in FHA Transactions – Appraisers ...


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The Supreme Court recently decided that mortgage loan officers are entitled to overtime pay. How has this affected your shop?

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