The settlement agreement stemmed from a complaint filed by the Department of Housing and Urban Development against First Citizens Bank and Trust Co. in 2011 after an analysis of 2010 Home Mortgage Disclosure Act data.

Some 4.0 million mortgage borrowers had negative equity at the end of the first quarter of 2016, down 21.5 percent from the first quarter of 2015.

The deal is the first post-crisis nonprime MBS to receive a credit rating and it will be the largest post-crisis nonprime MBS issued to date.

New home-equity lending activity fell during the first quarter of 2016, but the market started the year well ahead of the pace in early 2015, according to a new Inside Mortgage Finance ranking and analysis. New home-equity originations on home-equity lines of credit and closed-end second mortgages fell by 6.3 percent from the fourth quarter to an estimated $45.0 billion. However, that was up 18.4 percent from the first quarter of last year. The first-quarter drop in home-equity lending mirrored...[Includes three data tables]

Merger-and-acquisition activity in the mortgage sector has been relatively mild so far this year, but suddenly the table has turned with a handful of deals announced over the past two weeks and some lenders publicly stating their intentions as buyers. And one thing seems certain: It appears that all of the acquisitions will be accomplished through “asset” purchases as opposed to the acquisition of stock, be it private shares or otherwise. Early this week, Guild Mortgage, San Diego, inked...

Government-sponsored enterprise Fannie Mae recently issued some additional guidance to its mortgage lender partners about self-reporting deficiencies in complying with the Consumer Financial Protection Bureau’s integrated disclosure rule known as TRID. In a new selling-guide announcement, Fannie said, “Lenders are not obligated to self-report any matters related to possible TRID non-compliance, regardless of the number of loans involved, except in two limited circumstances where a repurchase demand is an authorized remedy.” The first circumstance is...

Portfolio lenders would get an expanded safe harbor from litigation under the qualified mortgage standard in the Consumer Financial Protection Bureau’s ability-to-repay rule under a proposed Republican replacement of the controversial Dodd-Frank Act. “Our plan ... provides critically needed mortgage relief with reforms that let community banks back into the mortgage business and ensure qualified borrowers can purchase a home while preserving prudent underwriting standards,” said House Financial Services Committee Chairman Jeb Hensarling, R-TX, in a speech at the Economic Club of New York on Tuesday morning. “Changes include an ability-to-repay safe harbor for loans held on portfolio, ensuring the availability of mortgage credit for manufactured homes, fixing the way points and fees are calculated, and exempting small servicers from escrow requirements.” The proposal, the Financial CHOICE (Creating Hope and Opportunity for Investors, Consumers and Entrepreneurs) Act, includes...

Home prices in many areas have fully recovered from the declines seen during the financial crisis, according to a variety of home price indices. While prices above levels seen before the financial crisis could cause alarms about another housing bubble, Sean Becketti, chief economist at Freddie Mac, is seeking to ease concerns. Last week, Freddie economists published an in-depth analysis of home price trends and median household income. They said the house price-to-income ratio appears to be the clearest indicator of the long-run sustainability of house prices. And even the PTI ratios that are relatively high in specific areas don’t necessarily indicate that there’s another housing bubble. “Based on this approach, we’re...

A growing number of mortgage-industry groups, housing interests and Democrats on Capitol Hill are urging the Federal Housing Finance Agency to allow Fannie Mae and Freddie Mac to begin to restore their capital bases, while others urge the FHFA to leave the matter to Congress. The Mortgage Bankers Association joined with four other groups this week in urging the FHFA to maintain the current state of conservatorship for the two government-sponsored enterprises and let Congress tackle broad mortgage-finance reform. “Absent reform, we run the risk of continuing to kick the can down the road without ensuring ongoing access to mortgage credit for millions of future homeowners,” the groups said. Joining the MBA were...

A bill making its way through the New York state legislature has prompted concerns among servicers and the Mortgage Bankers Association, who warn that the bill’s requirements regarding abandoned properties would increase costs and legal risks for servicers. A.6932-A, the Abandoned Property Neighborhood Relief Act, was recently approved by New York’s Assembly on a 116-22 vote. The bill would require servicers to periodically inspect properties tied to delinquent mortgages, report vacant properties to a state registry and provide authorities with tools to prompt servicers to maintain abandoned properties, among other provisions. “There is...