Industry groups are urging Congress and the FHA to consider incorporating risk-sharing into the agency’s business model while appearing leery of other proposals, such as risk-based pricing and reduced FHA coverage. Testifying at a hearing before the House Financial Services Subcommittee on Housing and Insurance, the Mortgage Bankers Association and the National Association of Realtors said that while they do not support risk-sharing between FHA and private mortgage insurers, it is an option that is worth exploring in the context of FHA reform. There was...
Fannie Mae, Freddie Mac and the Federal Home Loan Banks should devise contingency plans to address the potential meltdown of their various business partners, according to the Federal Housing Finance Agency. The FHFA last week issued an advisory bulletin directing the government-sponsored enterprises to each come up with plans for managing their counterparty risk exposures. “The analysis to identify a high-risk or high-volume counterparty should include an assessment of whether the deterioration in the condition of the counterparty or an elimination or reduction in exposure could result in a material loss or significant disruption to operations,” explained the FHFA’s bulletin. The guidelines describe...
Consumer advocates are calling on the Obama administration to extend the Home Affordable Modification Program beyond the end of this year. While HAMP is far from meeting performance goals set by the administration, consumer advocates claim the program is favorable to proprietary loan modifications completed by servicers. “Extending the HAMP program for several years – or, at a minimum, for one year – would greatly assist the housing market in general and neighborhoods most affected by high foreclosure rates in particular by helping more homeowners avoid foreclosure,” 36 consumer groups, including the Center for Responsible Lending and the National Consumer Law Center, said in a recent letter to Jacob Lew, secretary of the Treasury Department. In January 2012, the Obama administration announced...
Two-thirds of the nearly 2,000 real estate agents that responded to a Campbell Communications and Inside Mortgage Finance survey want mortgage closings in 30 days or less.
Wells Fargo has unloaded most of - but not all - of its remaining servicing rights tied to reverse mortgages. However, the bank says it is still "committed" to seniors through home equity loans.
The upcoming White House meeting on mortgage and housing issues may not address loan standards at all. Wells confirms plan to hire MSR 'project manager.'
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