Browse articles from all of our Newsletters related to Regulations.

August 29, 2016 - IMFnews

Short Takes: Just Because You’re Kicked Off the NYSE, That Doesn’t Mean… / Buying an MB for Diversification Purposes / A 10 Percent Broker Market Share and Holding / Clayton and Angel Oak / Nationstar is Hiring!

The nation's fourth largest servicer, Nationstar Mortgage, will hold a job fair on Sept. 12 at the Maude Cobb Convention Center in Longview, TX.

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

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 26, 2016 - IMFnews

What We’re Hearing: Caliber and PHH, an Update / Not a Good Thing: Having Too Much of Your Net Worth Tied up in MSRs / Banks and Brokers: No Longer in Love / Will a Retail Subprime Lender Emerge and Go National? / IU Chief Loses GSE Case

Angel Oak, by the way, is licensed to lend in 30 states. It hopes to be in 40 within the next year, said company official John Hsu…

August 26, 2016 - IMFnews

Ocwen Agrees to Pay WA Almost $1 Million to Settle Charges that it Used Unlicensed Offshore Affiliates to Perform Servicing Functions

Ocwen services roughly 60,000 loans in Washington state.

August 26, 2016 - Inside MBS & ABS

Law Firms Publish Joint Paper on CMBS Risk-Retention; First Compliant Deal Closes

In a somewhat uncommon occurrence, four law firms published a position paper late last week aimed at helping industry participants comply with pending risk-retention requirements for new commercial MBS. The paper was written by attorneys at Cadwalader, Wickersham & Taft; Dechert; Orrick, Herrington & Sutcliffe; and Sidley Austin. “The paper was authored...

August 26, 2016 - IMFnews

GSEs Introduce a New Loan Dispute Appeal Process…

Fannie Mae and Freddie Mac introduced the IDR program back in February as the final piece to the representation-and-warranties framework.

August 25, 2016 - IMFnews

Short Takes: Stonegate Mortgage a Buyer of Other Firms? / The Other Stonegate Buys a Florida Bank / The Kings of the Channels / A New Permanent CEO for Clayton / Former FHFA Director DeMarco Sets the Record Straight

From what we understand, Stonegate Bank is not very active in residential lending, but Insignia is…

August 25, 2016 - Inside Mortgage Finance

Appraisal Issues Increasingly Causing Delays of Purchase Mortgages in Busy Home-Buying Season

A shortage of appraisers and rising mortgage activity has prompted appraisal issues to account for more delayed closings, according to the latest Campbell/Inside Mortgage Finance HousingPulse Tracking Survey. For home sales closed in July after experiencing a delay, appraisal-related issues accounted for the delay 14.1 percent of the time, based on a three-month moving average. That was up from a 12.4 percent share the previous month and nearly double the 7.2 percent share in January. “Closing times are...

August 25, 2016 - Inside Mortgage Finance

FCC Declines to Exclude Servicer Calls to Delinquent Borrowers from TCPA’s ‘Prior Consent’ Requirement

The Federal Communications Commission has refused an industry request to exempt mortgage servicing calls from prohibitions against the use of “robocalls,” or automated dialing and calling systems, to contact delinquent borrowers on their cell phones. In a long-awaited final rule limiting the way servicers can collect on student loans, mortgages and other debts owed to the federal government, the FCC said it would not make a decision on whether the statutory exemption from the Telephone Consumer Protection Act’s “prior express consent” requirements applies to Fannie Mae and Freddie Mac loans or their servicers. The TCPA and FCC regulations require...

August 25, 2016 - Inside Mortgage Finance

Steady as She Goes in Subservicing Market but Sector Could be Poised for Growth as Firms Go ‘Capital Lite’

The nation’s subservicers increased their base of contracts to $1.615 trillion in the second quarter, a modest 1.6 percent gain from the prior period, but a handsome 17.0 percent improvement from the same period a year earlier, according to survey figures compiled by Inside Mortgage Finance. Overall, these third-party processing vendors – who split the monthly fee with the actual owner of the servicing strip – control 15.9 percent of all residential mortgage debt in the nation. A year ago the reading was 14.0 percent. And it’s...[Includes one data table]

August 25, 2016 - IMFnews

FHFA Readies Successor Program to HARP. Name to Follow

FHFA estimates there are roughly 300,000 homeowners potentially eligible to refinance through HARP.

August 25, 2016 - IMFnews

TRID Impact on Purchase-Mortgage Process Receives Widely Differing Assessments from Real Estate Agents

One real estate agent did not mince words: "TRID is a nuisance and should be done away with immediately if not sooner. Shut the Consumer Financial Protection Bureau.”

August 24, 2016 - IMFnews

Trade Groups with Nonbank Members Ask the CFPB: How About Us?

Not only are CHLA and CMLA unhappy with the lack of representation, they want the CFPB to form a “Community Mortgage Banking Advisory Council...”

August 24, 2016 - IMFnews

CFPB Considering Registration System for Nonbanks, Mortgage Firms Included

A CFPB nonbank registration system might be used to collect financial and operational data and information on a lender’s organizational structure…

August 23, 2016 - IMFnews

Short Takes: A 25 Percent Chance Uncle Sam Will Lose the GSE Lawsuits / Risk-Sharing Depletes Shareholder Value / Former Fannie CEO Mudd Settles with SEC / Mudd’s Second Act Didn’t Last Long / A New Hire for Closing Corp.

KBW believes all the GSE risk-sharing deals will “put further pressure” on the long-term value of the stocks of Fannie and Freddie…

August 23, 2016 - IMFnews

CMC Warns About FDCPA, Fears Servicing Costs Will Rise Even More

The CMC – which represents several large commercial banks – calls the FDCPA an “antiquated and poorly drafted" statute...

August 23, 2016 - IMFnews

New GSE Application Allows for Cell Phone Numbers, Email Address, More. Industry Applauds

Regarding the omission of cell phone numbers and email addresses, one Florida-based mortgage executive said, “It drove us crazy – of all things not to have in this day and age.”

August 22, 2016 - Inside the CFPB

Other News in Brief

The Federal Deposit Insurance Corp. last week released on its website updated technical assistance videos on the CFPB’s Ability-to-Repay/qualified mortgage rule. “The updated videos provide financial institution management, compliance officers and staff with resources for a better understanding of the current requirements of the ATR and QM rule,” it said. ... CFPB Director Richard Cordray last week responded to two members of the Senate Banking, Housing and Urban Affairs Committee who had recently pressed him to consider exempting small community banks and credit unions from as much of its rulemaking as possible...

August 22, 2016 - Inside the CFPB

CFPB Delayed in Providing PIV for Access to its Networks, OIG Finds

The CFPB is strengthening its identity and access management program and access controls for select systems, but is behind the curve when it comes to supporting the use of personal identity verification (PIV) technology, according to the latest Office of Inspector General review of the bureau’s information security management practices. “[W]hile the CFPB uses multifactor, token-based authentication for remote access to the agency’s network, it has not implemented PIV cards for logical access to the agency’s network and systems,” the OIG report stated. CFPB officials told the OIG that the bureau is making progress in implementing PIV. “However, implementation has been delayed due to the prioritization of competing initiatives and the timing of the agency’s transition from the U.S. Department ...

August 22, 2016 - Inside the CFPB

Student Loan Borrowers Run Into Problems With IRD Plans: CFPB

Student loan borrowers are encountering difficulties when they try to file an application for income-driven repayment (IDR) plans, according to the CFPB’s midyear update on student loan complaints, which was released late last week. Since 2009, the vast majority of borrowers with federal student loans have a right under federal law to set their monthly student loan payments based on their income. For borrowers who are unemployed or earn low wages, these IDR plans provide for a “payment” as low as $0 per month. “Many borrowers depend on student loan servicers to inform them about the availability of IDR options and for processing borrowers’ enrollment in these plans,” said the bureau. “This report observes that borrowers encounter obstacles when submitting ...

August 22, 2016 - Inside the CFPB

Debt Collection Outline Suggests CFPB Intends to Cast a Wide Net

While much of the lending industry was captivated and consumed with TRID 2.0 and mortgage servicing amendments two weeks ago, the CFPB used the occasion of a public field hearing to preview its pending debt collection rule by circulating an outline of proposals under consideration in the run-up to conducting a small business review panel. The proposals the bureau is mulling over would increase protections pertaining to third-party debt collectors and others covered by the Fair Debt Collection Practices Act, including many debt buyers. “As part of its overhaul of the debt collection marketplace, the CFPB plans to address consumer protection issues involving first-party debt collectors and creditors on a separate track,” the agency said. More specifically, among the new ...

August 22, 2016 - Inside the CFPB

CFPB Considering Registration System for Nonbank Institutions

The CFPB is considering whether to propose a rule that would require registration of nonbank financial institutions, according to a Request for Information (RFI) the bureau posted on the Federal Business Opportunity website recently. As part of this process, the bureau is considering whether to procure a comprehensive and interactive online web-based registration system. “Such a system would allow nonbank financial institutions supervised or regulated by the CFPB to apply for, amend, update, or renew a registration online using a single set of uniform applications and would allow the CFPB to process these registration applications and amendments through automated workflows,” according to the RFI. Such a potential registration system might also be used to collect financial and operational data as ...

August 22, 2016 - Inside the CFPB

Does TRID Definition of Application Trigger HMDA Reporting? Maybe

One mortgage lender recently inquired of Michael Goldhirsh, director of legal and regulatory compliance for the Lenders Compliance Group, as to whether the definition of “application” in the CFPB’s TILA/RESPA Integrated Disclosure rule (TRID) triggers or otherwise affects reporting under the Home Mortgage Disclosure Act. In a recent blog posting, he replied: “The short answer is that receipt of some or all of the six pieces of TRID application information does not necessarily trigger an application for purposes of HMDA reporting.” Goldhirsh went on to explain that Regulation C defines an application for HMDA reporting purposes as an oral or written request for a home purchase loan, a home improvement loan, or a refinancing that is made in accordance with ...

August 22, 2016 - Inside the CFPB

New Requirements in NY Pose Challenges for Servicers

New legal requirements enacted in the state of New York in the wake of the financial crisis pose particular compliance challenges for mortgage servicers, according to a new report by analysts at S&P Global Ratings. The S&P team recently reviewed a series of laws the state legislature passed in June that attempts to address several issues related to “zombie” foreclosures, which refers to the phenomenon of a servicer initiating foreclosure on a vacant property but not going so far as to actually take title. Urban community activists complain such properties languish unsold for a prolonged period of time, contributing to neighborhood blight in communities least able to handle it – hence, state lawmakers decided to act. One resulting requirement “imposes conditions ...

August 22, 2016 - Inside the CFPB

Most Small Lenders Felt Rushed by CFPB’s SBREFA Process, GAO Finds

Most of the small-entity participants in the review processes run by the CFPB before it came out with four major mortgage rules felt they were hurried by the process and unsatisfied with the final results, the Government Accountability Office said in a recent report. The GAO took a look at the experience of the 69 Small Business Regulatory Enforcement Fairness Act (SBREFA) panel participants involved in evaluating the likely effects of the CFPB’s TILA/RESPA Integrated Disclosure rule (TRID), the mortgage servicing regulation, its loan originator compensation rule, and the Home Mortgage Disclosure Act regulation. Of the 57 small-entity representatives GAO interviewed, “two-thirds stated not enough time was allotted to discuss at least one of the topics on the panel agenda ...

August 22, 2016 - Inside the CFPB

FCC Limits ‘Robocalls’ on Mortgage Loans, Student Loan, Other Debt

The Federal Communications Commission recently promulgated final rules that restrict how companies can attempt to collect on delinquent agency mortgages, federal student loans and other debts owed to the federal government, including through the use of so-called robocalls. The new rules limit the number of robocalls to wireless numbers, including text messages, to three per month. The new rules also only allow robocalls concerning debts that are delinquent or at imminent risk of default, unless there is prior express consent otherwise. The new rules require that, absent consent, callers only call the individual who owes the debt, not his or her family or friends. This includes limiting the number of robocalls allowed to reassigned numbers. The new rules reiterate that ...

August 22, 2016 - Inside the CFPB

Non-QM Lending Stuck in Funk, Investor Demand Improves a Bit

A National Association of Realtors survey of mortgage originators during the second quarter of the year found that lending outside the parameters of the qualified mortgage standard remains in the doldrums, even though there appeared to be a slight improvement in demand from investors for such loans. Survey participants were asked to provide the percentage share of their production for safe-harbor QM loans, rebuttal-presumption QM loans, and non-QM loans. Respondents indicated that a whopping 93.2 percent of production was in the safe-harbor QM space during 2Q16, up from 89.9 percent in 1Q16. That gain came at the expense of the other two categories. Production of rebuttable-presumption QMs fell from 9.9 percent in the first quarter of the year to 6.7 percent ...

August 22, 2016 - Inside the CFPB

Life Under TRID: Delays Ease, Costs Rise, Smaller Loans Less Desirable

The CFPB’s TILA/RESPA Integrated Disclosure Rule continues to have mixed results, at least from the perspective of the nation’s mortgage originator community. According to the recently released results of a survey by the National Association of Realtors of mortgage originators during the second quarter of 2016, delays attributed to TRID eased between the first and second quarters of the year, as did lenders’ reluctance to offer pre-approval letters, while cancellations ticked up. Originators were asked, since April 1, what share of their company’s mortgage transactions had been delayed or cancelled due to a TRID-related issue versus non-TRID issues. Mortgages delayed due to TRID ticked barely down, from 1.8 percent in 1Q16 to 1.7 percent in 2Q16. In the fourth quarter ...

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

Tennessee Bank FB Financial Files for IPO, Looks to Increase Mortgage Business

FB also services roughly $4.02 billion in residential loans…

August 18, 2016 - Inside Mortgage Finance

Most Small Entities Felt Rushed by CFPB’s SBREFA Process, Unsatisfied With Final Mortgage Rules

Most of the participants in the review processes instituted by the Consumer Financial Protection Bureau prior to issuing four major mortgage-related rules felt rushed by the process and unsatisfied with the final results, according to a report from the Government Accountability Office. GAO reported on the experience of panel participants involved in analyzing the likely effects of the CFPB’s TILA/RESPA Integrated Disclosure rule (TRID), the mortgage servicing regulation, its loan ...

August 18, 2016 - Inside Mortgage Finance

With Falling Market Share, Analysts Doubt if FHA Would Do Another MIP Cut; Factors Other than Share Influence Agency

Despite the FHA loss of market share to the private mortgage insurance business in the second quarter of 2016, stakeholders continue to believe that an FHA premium reduction is not likely to occur any time soon. Analysts with Keefe Bruyette & Woods said that, while investor concern about an FHA price cut remains elevated, the likelihood of a cut “is not very high” and the impact would be limited since the FHA is likely to cut rates only by about 30 basis points before hitting the ...

August 18, 2016 - IMFnews

It’s Not Going to Happen Anytime Soon: A Cut in FHA Premiums

The private MI share of new primary insurance rose 6.0 percentage points to 37.8 percent during the second quarter, while the FHA share fell 5.4 percentage points to 34.4 percent…

August 17, 2016 - IMFnews

HUD IG Not Done with Scrutiny of Downpayment Assistance Program

The IG suggested that state HFA downpayment assistance programs are no different than the seller-funded DPA arrangements that led to huge losses for the FHA…

August 16, 2016 - IMFnews

Short Takes: Another MI M&A Deal in the Works? / Tony Renzi’s Stock Award / Fannie Reviewed Board Seat for CEO / Don Works for Free / Regions Works Out HUD Settlement

Keep in mind there are just seven MI firms writing new policies today so there are antitrust implications regarding two large players merging...

August 12, 2016 - Inside FHA/VA Lending

HUD Offices Disagree on How to Process Settlement Collections

A dispute over which office within the Department of Housing and Urban Development is responsible for tracking and recording certain collections from civil fraud settlements is wreaking havoc on HUD’s accounting of collections and recoveries. In its semiannual report to Congress, HUD’s Office of the Inspector General said it might have to elevate the matter to the HUD deputy secretary for a decision as to which office is responsible for each action. The dispute ...

August 12, 2016 - Inside FHA/VA Lending

Lapses in Communicating Loss Mit Options Result in HUD Violations

An FHA servicer’s failure to communicate in a timely manner with delinquent borrowers for potential loss mitigation options exposed troubled homeowners to the risk of losing their home, according to results of an audit by the Department of Housing and Urban Development’s inspector general. The delay also may have resulted in a violation of federal and state bankruptcy laws, the inspector general’s report noted. The audit looked into Selene Finance’s servicing of FHA loans and ...

August 12, 2016 - Inside FHA/VA Lending

HUD IG Takes Up Premium Pricing Concerns with House Panel

The Department of Housing and Urban Development’s inspector general has taken its dispute with HUD over downpayment assistance to Congress, accusing FHA of steering borrowers to DPA programs with an illegal funding scheme. In a recent letter to House Financial Services Committee Chairman Jeb Hensarling, R-TX, HUD Inspector General David Montoya said premium pricing uncovered during an audit of an Arizona-based FHA lender violates federal law regarding ...

August 12, 2016 - Inside MBS & ABS

MBS and ABS Participants Push for Changes to Funding Ratio Requirements Proposed by Federal Bank Regulators

Federal banking regulators should make a number of adjustments to proposed net stable funding ratio requirements, according to the Structured Finance Industry Group and other industry participants. The Federal Deposit Insurance Corp., the Federal Reserve and the Office of the Comptroller of the Currency issued the NSFR proposed rule in April, following standards set by the Basel Committee on Banking Supervision. Comments on the proposed rule were due late last week. The NSFR addresses...

August 12, 2016 - Inside MBS & ABS

Fannie Releases Modified Loan Historical Data to Support New MBS Program that May Become Significant Asset Class

Fannie Mae’s new securitization program for modified single-family mortgages could generate as much as $24 billion in issuance, according to an analysis by Bank of America Merrill Lynch. The program will create “an asset class meriting investor focus,” BAML noted. Fannie recently released...

August 12, 2016 - IMFnews

Short Takes: VA 2Q Loan Volume at $48 Billion / Hedge Funds See Bargains in Servicing Rights? / Bill Erbey Continues to Sell Shares / Michigan Mutual’s New Hire

Some investors believe servicing prices now look enticing.


The yield on the benchmark 10-year Treasury fell to all-time low of 1.34% recently. How much better will originations be at your shop in the second half compared to 1H, if at all?

Better by 1% to 10%.


Better by 11% to 25%.


Off the charts better. Applications are great now.


Worse than 1H, but not by much.


A lot worse. But not sure on the damage.


Housing Pulse