Regulations

Browse articles from all of our Newsletters related to Regulations.

May 22, 2015 - Inside The GSEs

FHLB Proposed Membership Rule Still Faces Uncertainty

The Federal Housing Finance Agency continues to mull over the decision on whether to ban captive insurance firms owned by real estate investment trusts from the system. The agency received 1,300 comment letters on the controversial proposal and Mel Watt, FHFA’s director, was vague last week on when a final decision would be made. “FHFA is continuing to evaluate the comments we received and we will come to a resolution as quickly as we can prudently do so,” he said during the Federal Home Loan Banks Directors Conference in Washington. Last year, Watt raised safety and soundness concerns about captive insurers borrowing and joining the FHLB system. Some regulators are concerned that REITs and other financial...


May 22, 2015 - Inside The GSEs

FInal FHFA Seller/Servicer Regs Unchanged on Financials

The Federal Housing Finance Agency this week unveiled final eligibility rules for nonbank servicers, codifying minimum capital and liquidity ratios for the industry along with a host of standards that owners of servicing rights must meet. All the requirements take effect December 31 of this year. In particular, the mandates, on the surface, might look burdensome to smaller shops that aren’t used to extensive audit requirements pressed upon them by Fannie Mae and Freddie Mac. The surveillance and “best practices” guidelines cover a host of areas, including such things as servicing transfers, and how the servicer (or servicing agent) manages its call center. Smaller shops, to some extent, are thrown a bone in the final rules.


May 22, 2015 - Inside The GSEs

GOP Reg Relief Bill Passes, GSE Provisions Include PSPA, More...

The Senate Banking, Housing and Urban Affairs Committee this week passed the Financial Regulatory Improvement Act of 2015 by a 12 to 10 margin along party lines. The measure, introduced by committee Chairman Richard Shelby, R-AL, includes a number of GSE provisions. Title VII of the bill prohibits the use of increases in Fannie Mae and Freddie Mac guaranty fees to offset outlays or reductions in revenues for “any purpose other than enterprise business functions or housing finance reform as passed by the Congress in the future.” The bill was approved by the Senate Banking, Housing and Urban Affairs Committee. Another provision would prohibit the U.S. Treasury from selling or...


May 22, 2015 - IMFnews

What We’re Hearing: FHA Readies a Bromide? / Another FHA Lender May Sue HUD / Kudos for Quicken’s Bill Emerson / A Big M&A Deal Brewing? / At Least FBR’s Paul Miller is Optimistic

We understand that at least one other prominent FHA lender is contemplating filing a lawsuit against the government as well...


May 22, 2015 - Inside MBS & ABS

Senate Committee Passes GOP Regulatory Relief Bill, GSE Capital Requirements Amendment Withdrawn

The Senate Banking, Housing and Urban Affairs Committee approved a Republican regulatory relief bill on a strictly partisan vote late this week, with all of the mortgage-finance provisions previously reported intact. Sen. Pat Toomey, R-PA, momentarily offered Fannie Mae and Freddie Mac a “get out of jail free” card, in the form of an amendment addressing capital requirements for the two government-sponsored enterprises, then withdrew it, presumably for use at a future point in time. “This is...


May 22, 2015 - Inside MBS & ABS

Single-Security Is Years in the Distance as CSS Focuses On ‘Getting It Right,’ Bringing All Parties to the Table

Officials involved in the development of the common securitization platform and the single, interchangeable MBS for Fannie Mae and Freddie Mac have vowed not to publicize any timetable for the project. And despite several attempts to get an answer during a panel session at this week’s secondary market conference sponsored by the Mortgage Bankers Association, they stuck to their plan. They went out of their way to stress that they haven’t forgotten about potential non-agency users sometime down the road. But that’s...


May 22, 2015 - IMFnews

FHFA Pulls Down the Cone of Silence on Single-Security Timeline

Is a single GSE security years in the distance? It's hard to say. The FHFA won't offer a timeline.


May 21, 2015 - Inside Mortgage Finance

Class Certification Denied in Bank’s Fair-Lending Suit; Groups Sue Fannie for Bad REO Practices

In a ruling that may impact future fair-lending class actions, a federal district court judge in Manhattan has denied class certification in a lawsuit brought by the American Civil Liberties Union and National Consumer Law Center against global investment bank Morgan Stanley. Filed in October 2012, the suit was brought on behalf of African American borrowers in Detroit who obtained subprime loans from New Century Mortgage, a now-defunct originator that sold the loans to secondary-market purchasers, including Morgan Stanley, which then securitized them. New Century originated...


May 21, 2015 - Inside Mortgage Finance

Lenders Prevail in Novel Lawsuits Involving Loss Mitigation, Allegations of Predatory Lending

Separate lawsuits against major banks were dismissed last week, providing some insight on how lenders and servicers can defend against claims brought by consumer advocates under the False Claims Act and allegations of redlining and reverse redlining. In 2013, Advocates for Basic Legal Equality alleged that U.S. Bank’s servicing practices violated the FCA. U.S. District Court Judge Jack Zouhary dismissed the lawsuit, noting that the claims were barred by the “public disclosure doctrine.” Larry Platt, a partner at the law firm of K&L Gates, said...


May 21, 2015 - Inside Mortgage Finance

Dems’ Alternate Reg Relief Bill Would Confer QM Status on Portfolio Loans Only for Small Lenders

The noise over regulatory relief legislation is getting louder. Over the past week, Republicans in the Senate issued a clarification of sorts about their draft legislation, Democrats came up with a narrower alternative and the industry weighed in as the Senate Banking, Housing and Urban Affairs Committee prepared for a markup scheduled for late this week. A noteworthy provision in the Democrats’ proposal would extend qualified-mortgage status for loans originated and held in portfolio – but only if the depository institution has less than $10 billion in assets. The GOP bill would extend this safe harbor to all banks, thrifts and credit unions. The Democratic proposal would bar...


May 21, 2015 - Inside Mortgage Finance

Analysts See Stronger Market in 2015, But Little Change In Fundamental Problems Facing the Mortgage Industry

Housing is showing some traction, but heavy regulation and enforcement continue to weigh on the mortgage market, according to analysts at this week’s secondary-market conference sponsored by the Mortgage Bankers Association in New York. Charles Gabriel, president of Capital Alpha Advisors, said there are some green shoots in the mortgage market, including signs of more home sales. But he characterized it as “a mature market that is suboptimized.” Lenders have paid massive penalties in lawsuits, he added, and there is no sign that they will expand the credit box. “U.S. Bank was asked...


May 21, 2015 - IMFnews

Short Takes: Finally, Lawsky Tells Us When He’s Leaving / Meet the New NYDFS Boss, Same as the Old Boss? / Erbey Still Loves Ocwen, At Least Its Stock / Shelby Bill Passes, but... / Impac’s Non-QM Volumes Meager But Growing

Who might replace Lawsky? How about: Rohit Chopra, assistant director and student loan ombudsman for another agency that’s highly popular with mortgage executives: the CFPB.


May 21, 2015 - IMFnews

Final FHFA Servicer-Eligibility Rules Will Impact Smaller Shops More

According to analyst Paul Miller of FBR Capital Markets, the standards are meant to “impact small, nonpublic, nondepository institutions that have operated on the periphery of the sector.”


May 21, 2015 - IMFnews

Analysts See Stronger Mortgage Market in 2015, but Not Much Expansion in the Credit Box

“U.S. Bank was asked why it wasn’t expanding in the mortgage business,” Gabriel said during a panel discussion. “Their answer was: ‘Did you see what happened to Bank of America?’”


May 20, 2015 - IMFnews

Short Takes: Final Capital Standards from the FHFA Arrive / Nationstar Not Worrying / Leveraging Employees (Overseas Too) / Loan Officer Demand Red Hot? / Auction.com Branches Out

Among those nonbanks not losing too much sleep over the FHFA proposal is Nationstar Mortgage.


May 20, 2015 - IMFnews

Congress Ponders Streamlining, Merging Rural Housing Service into FHA

“The process of dealing with RHS is a nightmare,” said Rep. Blaine Luetkemeyer, R-MO, vice chairman of the committee.


May 20, 2015 - IMFnews

FHFA IG Worries About Nonbank Risk (Again), Cyber Attacks, More

In response to its anxiety, the Inspector General plans a series of audits that will study the risks posed by an increasing volume of nonbank loan sales.


May 20, 2015 - IMFnews

TRID to Heighten Odds of Losses in U.S. RMBS, Moody’s Says

Mortgages with uncured TRID violations will have higher losses if they default, owing to the potential for increased legal costs and damages, said Moody's.


May 20, 2015 - IMFnews

CFPB May Review Lender-Paid Mortgage Insurance

One source said the CFPB is even reaching out to former MI officials to assist it in its review.


May 19, 2015 - IMFnews

Wells, Ocwen, Others Agree to Register and Maintain Vacant Properties in New York

Under existing New York law, mortgage companies aren’t required to maintain vacant properties until they receive a judgment of foreclosure...


May 19, 2015 - IMFnews

The Latest Word From the CFPB’s Cordray on TRID: August 1, No ‘Soft’ Enforcement?

The CFPB also disputed the notion that the Aug. 1 effective date comes at a bad time on the closing calendar...


May 18, 2015 - Inside the CFPB

Briefs: Also Noteworthy

CFPB May Review Lender-Paid MI. Pricing on lender-paid mortgage insurance policies has come down over the past several months, apparently spurring the CFPB to take a look at what’s going on behind the curtain. Citing industry officials who claim to have knowledge of the situation, Inside Mortgage Finance, an affiliated publication, reported late last week that the powerful consumer regulator may focus on whether there is some kind of quid pro quo going on between lenders and mortgage insurers. In particular, the CFPB is interested in the discounting of LPMI in exchange for a lender sending more of its MI business to an insurer and whether such a practice violates the Real Estate Settlement Procedures Act, the newsletter reported. In ...


May 18, 2015 - Inside the CFPB

Briefs: More and More TRID

CFPB Updates Mortgage Origination Examination Procedures to Reflect TRID. The CFPB has put out an updated version of its Supervision and Examination Manual’s Mortgage Origination examination procedures. The latest iteration features guidance on how its compliance examiners will examine loan disclosures and the terms of closed-end residential mortgages that are subject to the pending integrated disclosure rule under the Truth in Lending Act and the Real Estate Settlement Procedures Act. Of the manual’s eight modules, the updated TRID examination procedures are reflected in module #4. “Examiners should obtain and review a sample of complete loan files to assess the entity’s compliance,” states the new section of the manual. “If consumer complaints regarding mortgage origination and closing indicate potential violations of ...


May 18, 2015 - Inside the CFPB

Debt Collection Industry Turning In Quite a Varied Performance

The top three operations in the debt collection business all saw their consumer complaint numbers fall both quarter over quarter and year over year, according to a new analysis by Inside the CFPB. Fourth-ranked Enhanced Recovery Co. was the only one of the top five to see increases in both timeframes, and they were doozies: a 96.5 percent jump QoQ and a huge spike of 184.1 percent YoY. Citibank, the only financial institution in the top tier, was uneven, with complaints up a small 6.3 percent QoQ, but down a substantial 28.5 percent YoY. This dynamic seemed in full play for the entire industry, with many firms doing well, some doing poorly [with an exclusive chart] ...


May 18, 2015 - Inside the CFPB

Sprint, Verizon Agree to $158M Settlement Over ‘Cramming’

The CFPB recently announced it brought an enforcement action against Sprint and Verizon, alleging illegal “cramming” of hundreds of millions of dollars in unauthorized third party charges on customers’ mobile phone accounts. Under the terms of proposed consent orders, which are pending court approval, the pair will provide $120 million in consumer refunds, as well as pay $38 million in federal and state fines. The problem stemmed from the alleged failure on the part of Sprint and Verizon to properly monitor their outsourced processing of payments to third party vendors for digital purchases. “The lack of oversight by Sprint and Verizon allowed the vendors to have nearly unfettered access to consumers’ wireless accounts,” said the CFPB. “The billing systems for ...


May 18, 2015 - Inside the CFPB

CFPB Begins Investigating Student Loan Servicing Practices

The CFPB has launched a public inquiry into student loan servicing practices that create repayment challenges, hurdles for distressed borrowers, and economic incentives that may affect the quality of service. The bureau said it has observed that many borrowers are experiencing significant student debt stress. “Consumers have complained about billing problems associated with payment posting, prepayments and partial payments,” it said. The CFPB has also heard from distressed borrowers that student loan servicers aren’t being very useful in helping them avoid defaults and delinquencies. “Distressed borrowers complain that they are given the runaround when they ask for help, they have a hard time getting straight answers from servicing staff, and that the staff is untrained or unequipped to deal with ...


May 18, 2015 - Inside the CFPB

CFPB Sues Nationwide Biweekly, Alleging Promises of False Savings

The CFPB sued Ohio-based Nationwide Biweekly Administration, Loan Payment Administration, and their owner, Daniel Lipsky, in federal district court last week, accusing them of misrepresenting the interest savings consumers will achieve through a biweekly mortgage payment program called the “Interest Minimizer” and misleading consumers about the cost of the program. Under the program, consumers who enroll send Nationwide half their monthly mortgage payment every two weeks, effectively making one additional monthly payment per year. According to the bureau, Nationwide charges consumers a setup fee of up to $995 to enroll in the program and charges consumers between $84 and $101 in payment processing fees each year they remain enrolled. According to the bureau’s complaint, the defendants made misrepresentations about the ...


May 18, 2015 - Inside the CFPB

Shelby Regulatory Relief Bill Includes ATR Fix for Portfolio Loans

Sen. Richard Shelby, R-AL, chairman of the Senate Banking, Housing and Urban Affairs Committee, released the text of his pending regulatory relief bill last week. Among a handful of CFPB-related provisions is one that would grant qualified mortgage status under the bureau’s ability-to-repay rule for residential loans held in portfolio. However, as per the draft Financial Regulatory Improvement Act of 2015, certain conditions would have to apply. To begin with, the lender/creditor would have to hold the loan in portfolio from its inception, or any acquirer of the loan must continue to hold it in portfolio. Additionally, the mortgage cannot have been acquired through securitization, nor can it have certain forbidden features, like negative amortization, interest-only provisions, or a loan ...


May 18, 2015 - Inside the CFPB

Most Title Industry Pros Will be Ready for TRID on Time: ALTA

Contrary to other segments of the mortgage industry, a huge majority of title professionals will be ready to play ball when the CFPB’s TILA/RESPA integrated disclosure rule goes live Aug. 1, 2015, according to a survey conducted by the American Land Title Association. “Ninety-two percent of our survey respondents indicated their company will be prepared to implement the new forms and comply with the CFPB’s regulation,” said Michelle Korsmo, ALTA’s chief executive officer. “The land title insurance industry has been a leader in preparing the real estate industry for the new disclosures and that is reflected in the preparedness of our members.” However, perhaps not so surprisingly, collaboration with lenders and real estate agents, and potential closing delays top the ...


May 18, 2015 - Inside the CFPB

Industry Uncertain About TRID Compliance Capabilities: ABA

Most of the mortgage industry cannot reliably confirm whether it will be ready to fully comply with the CFPB’s pending integrated disclosure rule, according to a new member survey by the American Bankers Association. Based on approximately 800 responses from bankers nationwide, “Our survey reveals that an overwhelming 74 percent of banks are using a vendor or consultants to assist with TRID implementation,” Bob Davis, head of mortgage markets at the ABA, said in a letter to CFPB Director Richard Cordray. Community banks in particular are highly dependent on the ability of vendors to deliver technology-related services that are critical to bank compliance efforts, according to Davis. “Interestingly, though, bankers from large institutions were over-represented in the survey, which implies ...


May 18, 2015 - Inside the CFPB

MBA Asks For More Guidance on Changes to the Closing Disclosure

The Mortgage Bankers Association continues to forward to the CFPB questions and requests for clarifications on a number of issues related to the bureau’s integrated disclosure rule that have yet to be adequately addressed, such as changes to the Closing Disclosure (CD) after scheduled closing. “There are limited options under the rule, in the event a lender has provided a closing disclosure and closing is delayed for unforeseen circumstances outside the lender’s and/or the borrower’s control,” said the MBA in correspondence to the bureau. Similarly, there may be borrower and seller changes to the purchase terms. “Under the current rule and commentary, the lender apparently has no ability to provide a revised Loan Estimate (LE) or CD and re-compute the ...


May 18, 2015 - Inside the CFPB

Cordray Angers Realtors Over Concerns About Closing Delays

CFPB Director Richard Cordray tried to reassure attendees at the National Association of Realtors’ trade expo last week that the impact of the bureau’s pending integrated disclosure rule isn’t going to be as dramatic as many fear – particularly the concern that the three-day disclosure requirement is going to delay loan closings. “The timing of the closing date is not going to change based on any problems you discover with the home on the final walk-through, even matters that may change some of the sales terms or require seller’s credits,” Cordray said. On the contrary, the bureau “listened carefully to your concerns” and limited the reasons for closing delays to only three narrow sets of circumstances. They are: any increases to ...


May 18, 2015 - Inside the CFPB

Cordray Sticks to His Guns, Won’t Yield on TRID Enforcement

CFPB Director Richard Cordray continues to appear steadfast in his refusal to accommodate the mortgage industry by providing some sort of soft enforcement period for the new integrated disclosure rule, which is set to kick in Aug. 1, 2015. In a recent letter to Rep. Blaine Luetkemeyer, R-MO, one of the members of Congress who has been pressing the director for some kind of an enforcement grace period, Cordray was too discreet to come right out and say “no” to members of Congress. Instead, he told the congressman that the bureau shares his desire for “a smooth and successful implementation of the integrated disclosure rule, and we continue to work closely with all stakeholders to support that goal.” Cordray then ...


May 18, 2015 - Inside the CFPB

Bipartisan Pressure Mounts For TRID ‘Hold-Harmless’ Period

If one of the sponsors of the Dodd-Frank Act supports giving mortgage lenders an enforcement break when the CFPB’s integrated disclosure rule kicks in later this year, you know something serious is afoot. Such is indeed the case. Rep. Brad Sherman, D-CA, one of the original backers of Dodd-Frank, has crossed the partisan aisle in the House Financial Services Committee to join Rep. Steve Pearce, R-NM, in introducing H.R. 2213. Their bill would grant lenders a temporary safe harbor from enforcement of the rule integrating the required mortgage disclosures under the Truth in Lending Act and the Real Estate Settlement Procedures Act. More specifically, H.R. 2213 would protect lenders from private lawsuits and regulatory enforcement actions through Dec. 31, 2015, ...


May 18, 2015 - IMFnews

Short Takes: How High Can Ellie Mae’s Stock Go? / And the Flipping Continues / Lending to Flippers, a Profitable Business / GOP Says No to HUD Again / A Virginia M&A Deal

Several hard money lenders are involved in financing flippers, charging interest rates that are several percentage points above the going Fannie Mae/Freddie Mac rate.


May 18, 2015 - IMFnews

Ocwen Works to Address Operational Uncertainty By Adjusting Financing Agreements

Among other actions, Ocwen entered into an agreement in April to receive up to $125.0 million of backup financing for new loan originations...


May 18, 2015 - IMFnews

SEC Opens Inquiry on Use of Collection Agents at Ocwen and Other Firms

Existence of the probe was mentioned in the same paragraph about the NY SEC investigating Ocwen’s business dealings with affiliate companies such as Altisource...


May 15, 2015 - Inside FHA/VA Lending

Around the Industry

House GOP’s Proposed Budget Rejects IT Administrative Fee, HTF. House Republicans withheld funding for a proposed administrative fee, which the FHA planned to invest in technology to improve quality assurance and reduce paid-claims losses. The Department of Housing and Urban Development first requested authority to collect the fee in the President’s FY 2015 budget request but was turned down. It appears House Republicans are on track again to reject the proposed fee in the FY 2016 appropriations bill, said HUD Secretary Juan Castro. Castro lambasted the House Republicans’ proposed budget cuts, saying they would hinder HUD from carrying out its mission and from investing in communities that most need help. The GOP bill also rescinds funding to the proposed Housing Trust Fund, which allocates a small percentage of Fannie Mae and Freddie Mac profits to ...


May 15, 2015 - Inside FHA/VA Lending

Borrowers Suffer in the Long Run as Servicers Try to Avoid FHA Penalties

Mortgage originators are foregoing lending to borrowers who are more likely to become delinquent to avoid strict and unrealistic FHA timelines and cost limits, according to an Urban Institute study. Results of the study, which was issued in December, were again highlighted during a recent Housing Finance Policy Center seminar on servicing at the Urban Institute in Washington, DC. Citing the study she wrote, Laurie Goodman, director of the HFPC, said regulatory uncertainty and a broken servicer-compensation model were partly responsible for tight credit. The high cost of servicing non-performing mortgages and regulatory uncertainty regarding the treatment of delinquent borrowers have made lenders apprehensive about making loans that have even a slight chance of defaulting, she said. Long foreclosure delays in judicial states, burdensome foreclosure guidelines and apparently ...


May 15, 2015 - Inside FHA/VA Lending

HUD System Failed to Identify Ineligible FHA-HAMP Partial Claims

An internal audit of the FHA/Home Affordable Modification Program’s partial-claim option uncovered flaws that cost taxpayers millions of dollars in ineligible claims. According to a recent report by the Department of Housing and Urban Development’s Office of the Inspector General, HUD’s claim-payment controls were inadequate. As a result, the agency paid more than $22 million in unsupported claims and $103,925 in ineligible claims, the report concluded. Auditors said HUD did not design and implement strong safeguards to detect and prevent improper claims. Because of the flaws, the system allowed payment of more than one claim with a modification or FHA-HAMP option in a 24-month period, the report said. In addition, auditors found duplicate claims, partial claims in excess of 30 percent of the unpaid principal balance at initial default, and non-HAMP partial claims after HUD ...


May 15, 2015 - Inside FHA/VA Lending

RHS Final Rule for Certified Loan Application Packagers, Brokers

The Department of Agriculture’s Rural Housing Service has issued a final rule creating a certified loan-application packaging process for the agency single-family loan guaranteed housing program. Published in the April 29 Federal Register, the rule also establishes standards for packagers of loan applications, who are independent from RHS but play a key role in providing Section 502 rural home loan programs to potential homeowners. The final rule will take effect on July 28, 2015. Specifically, the rule addresses the weaknesses in RHS’ loan-application process and integrates the lessons learned from a loan-packaging pilot launched in 2010. The packager gathers and submits the information needed for RHS to determine whether a loan applicant is eligible for ...


May 15, 2015 - Inside FHA/VA Lending

Mortgages Rank High Among Top Servicemember, Vet Complaints

Making mortgage payments is the most common type of mortgage complaint active servicemembers, veterans or their dependents report to the Consumer Financial Protection Bureau. A recent CFPB report on the top complaints received from military members and their families show that 24 percent were mortgage-related, second to debt collection, which accounted for the highest percentage of complaints received, 39 percent. An estimated 53 percent of servicemember complaints involved mortgage servicing related to loan modifications, collections and foreclosures. The report did not identify any specific loan, although it covered both conventional and government-backed mortgages. Complaints against servicers were mostly about failure to remove or amend derogatory credit reports accrued by servicemembers during the trial period, even though the servicemembers have successfully ...


May 15, 2015 - Inside FHA/VA Lending

Ocwen Reveals Fair-Value Charge To GNMA MSRs Due to MIP Cut

Mortgage servicer Ocwen Financial, the target of a state enforcement action for allegedly mishandling distressed borrowers, said it would delay its regulatory 10-Q filing because of an impairment charge on Ginnie Mae servicing rights. The impairment was caused by a 50 basis point cut in the FHA’s annual mortgage insurance premium, which took effect in January, the servicer said. Although it had expected a $34.4 million profit in the first quarter of 2015, Ocwen took a $17.8 million impairment charge, which included monitoring costs, “strategic advisor expenses,” and fair-value adjustments. FHA lowered the annual MIP to enable more borrowers to obtain an FHA-insured single-family mortgage loan with a 3.5 percent downpayment. Ocwen would likely lose money if it sold off its government-backed MSRs, according to one servicing advisor. Last fall, Ocwen tried to sell its ...


May 15, 2015 - Inside FHA/VA Lending

FHA Delinquency Rate Drops in 1Q, VA Delinquencies, Foreclosures Up

The FHA overall delinquency rate for single-family mortgages fell by 63 basis points to 9.10 percent on a seasonally adjusted basis in the first quarter of 2015 from the previous quarter, while VA loans recorded the only increase across all loan types over the same period, according to the Mortgage Bankers Association. Overall, mortgage delinquencies and foreclosures continued to fall in the first quarter and are now at their lowest levels since 2007, according to the MBA’s quarterly delinquency-rate survey. On a seasonally adjusted basis, the overall delinquency rate fell 14 bps to 5.54 percent from the fourth quarter of 2014, and 57 bps from one year ago, the MBA said. The serious delinquency rate – the share of mortgages that are 90 days or more past due or in foreclosure – likewise fell 28 basis points to 4.24 percent from the previous quarter and down ...


May 15, 2015 - Inside FHA/VA Lending

VA, FHA Purchase Applications Up, Refi Loan Applications Decline

The VA share of total loan applications (purchase and refinancing) for the week ending May 8, remained unchanged at 11.9 percent while FHA’s share fell to 13.8 percent from 14.0 percent the week prior, according to the Mortgage Bankers Association’s latest weekly survey of applications. VA purchase loan applications were up a smidgen, 0.2 percent, for the week while FHA purchase applications were up slightly higher, 0.6 percent. Refi applications at both agencies, however, were down for the week – 11.5 percent for FHA and 5.1 percent for VA. Meanwhile, the Rural Housing Service’s share of total applications rose to 0.9 percent as of May 8, from 0.8 percent the week prior. While there was no change in RHS’ share of refi loan applications during the week, its purchase loan applications was up 8.6 percent, a hefty increase for an agency that accounts for only a ...


May 15, 2015 - Inside FHA/VA Lending

Robust Refi Activity Propel VA Past Private Mortgage Insurers in 1Q

The Veterans Administration’s home loan guaranty program has racked up some serious refinance numbers in recent months, causing primary mortgage insurers to lose some market share during the first quarter of 2015, according to an Inside Mortgage Finance analysis of guarantor activity. Streamline refinance loans accounted for 59.0 percent of VA loans securitized by Ginnie Mae during the first three months, compared to just 32.8 percent of private MI loans securitized by Fannie Mae and Freddie Mac over the same period. In addition, the VA had the highest average loan size among insured mortgages in the first quarter, approximately 7.2 percent larger than the average loan with private MI. Private mortgage insurers provided coverage on $45.2 billion of mint conventional mortgages during the first quarter, down 5.3 percent from the fourth quarter of last year. VA and FHA originations also increased over the same period by 6.0 percent and 5.5 percent, respectively. FHA forward originations surged ... [1 chart ]


May 15, 2015 - Inside FHA/VA Lending

Premium Reduction Helped Fuel 1Q Jump in FHA Loan Production

Price reduction and improving economic factors helped push FHA volume up in the first quarter of 2015, according to an Inside FHA/VA Lending analysis of agency data. Production of forward single-family mortgages insured by FHA increased by 12.3 percent in the first quarter to $39.5 billion from $35.2 billion in the prior quarter, powered by a sharp uptick in refinances. FHA’s total refi business jumped from $2.29 billion in endorsements in February, a month of record snowstorms in the Northeast, to $8.15 billion in March. Total FHA forward-mortgage business rose by 83.8 percent from February, data showed. FHA streamline refis rose a whopping 144.1 percent quarter-over-quarter while conventional-to-FHA refis jumped 29.2 percent over the same period. Falling purchase loan volume, which was the reason for the overall decline in FHA originations last year, spilled over into ... [2 charts]


May 15, 2015 - IMFnews

What We’re Hearing: What’s Next for Nationstar, Walter, Ocwen? / A Broken High-Touch Model? / Oh No: Ocwen Takes the Corporate Jet Away! / Texas Bank Warehouses Impac / FHFA Does Not Want the FHLBs to be an Issuer Through the CSP / More TRID Anxiety

More trouble for Ocwen: the corporate jet has been yanked!


May 15, 2015 - Inside MBS & ABS

Critics Slam Dodd-Frank and the Failure to Reform Housing Finance System, Predict More Failure

Republicans in the House of Representatives continued their efforts to chip away at the Dodd-Frank Act during a hearing this week by rolling out critics who said the act not only was a poor and ineffective response to the 2008 financial crisis, but also created a host of new problems and could be contributing to the next debacle. Rep. Sean Duffy, R-WI, chairman of the House Financial Services Oversight and Investigations Subcommittee, said a major assumption underlying Dodd-Frank – that the primary cause of the financial crisis was misbehavior by securities market participants – was false. “Main Street lenders are being...


May 14, 2015 - IMFnews

FHFA Ticks Off Capitol Hill by Proposing Higher Pay for GSE Chiefs

Watt said GSE pay should be brought more in line with comparable private sector jobs, but no higher than what CEOs in the 25th percentile of the market make, which is roughly $7.26 million a year.


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