In a new letter to CFPB Director Richard Cordray, the ICBA and 41 state affiliates say they want a “reasonable transition period of nine to 12 months."
Under the new guidance, lenders must report to FHA all findings of fraud and material misrepresentations concerning the origination, underwriting or servicing of a loan that the lender is unable to mitigate or resolve.
Ocwen Financial, the nation’s top-ranked subprime servicer, was the only firm among the major servicers that increased its subprime servicing portfolio (excluding subservicing) in the third quarter of 2013.
Although non-agency MBS issuance has been a dicey proposition since rates spiked in late spring, residential lenders continue to eye the sector, liking the long-term outlook for jumbo securities. Two nonbanks taking a close look at the jumbo MBS market include Freedom Mortgage and W.J. Bradley Mortgage Capital, both established names in the agency MBS arena. In an interview with Inside MBS & ABS, Freedom Mortgage CEO and founder Stanley Middleman said...
Recapitalization of RMIC Will Pave the Way for a Return to MI Market. Old Republic International (ORI) is planning to recapitalize its mortgage guaranty subsidiary, RMIC Companies, Inc., which could resume underwriting in early 2014. Old Republic plans to contribute up to $50 million of new capital and raise additional funds, which would allow RMIC and its subsidiaries to fully support existing policies, pay off deferred claim obligations, exit state supervision, and resume underwriting new business early next year. The cash infusion would require ...
Ginnie Mae issuers reported a 14.0 percent drop in mortgage-backed securities issuances in the third quarter from the previous quarter as refinance activity declined further and home-purchase lending slowed during the period, according to an Inside FHA Lending analysis of Ginnie Mae data. Despite the quarter-over-quarter drop, Ginnie production rose 11.2 percent in the first nine months of 2013. Volume over this period totaled $313.8 million, of which 60.3 percent were FHA loans, 33.9 percent were VA, and 5.2 percent were rural housing loans. Ginnie MBS issuance dropped gradually ... [2 charts]
Ginnie Mae is deploying four new applications as part of the agency’s effort to modernize its securitization platform. Current paper-based processes are being converted to electronic submissions and the new applications will be deployed during the fourth quarter of 2013. Issuers and document custodians will be able to use the new applications via the Ginnie Mae Enterprise Portal when they become available. These business applications include requests for pool numbers, request for commitment authority, submission of master agreements; and requests for transfer of issuer responsibility (pool transfer). Users will need an ...
The Department of Housing and Urban Development has updated the timelines and methods servicers must follow for communicating with borrowers in default. Mortgagee Letter 2013-39 also addresses policies for engaging borrowers early in their delinquencies, specialized collection techniques for early-payment defaults or re-default, and FHA’s expectation for servicers to have written processes and procedures to follow for every stage of delinquency up to collection. Communicating early with borrowers who are late in their mortgage payments is essential in ensuring that delinquency is properly addressed, the agency said. HUD’s latest guidance provides a “collection-communication timeline,” which is a series of sequential steps a servicer can follow in dealing with a delinquent borrower. These steps would help the servicer assess a borrower’s circumstances, intentions and financial condition as well as determine an appropriate response.
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