Eighteen Republicans gave Carol Galante the benefit of the doubt by helping to confirm her nomination as FHA Commissioner on a 69-24 vote after she promised a series of changes for the beleaguered FHA program. Galante, who had been serving as acting FHA commissioner, garnered enough Republican support to surpass the 60 votes needed to secure Senate approval of her nomination in late December. President Obama nominated her in June 2011 to replace FHA Commissioner David Stevens. In December 2011, the Senate Committee on Banking, Housing and Urban Affairs approved...

Bank of America and Fannie Mae this week announced a multibillion dollar settlement of their longstanding dispute over outstanding and potential repurchase claims from the government-sponsored enterprise dating back through much of the last decade. The “comprehensive resolution” covers current and future repurchase obligations related to loans with an outstanding balance of $297 billion, as of Nov. 30, 2012, that were originated by Countrywide Financial and Bank of America and sold to Fannie from Jan. 1, 2000, through Dec. 31, 2008. BofA will make...

The Consumer Financial Protection Bureau this week spread a huge safety net under the agency mortgage market, ruling that loans deemed suitable for Fannie Mae, Freddie Mac, the FHA and the Veterans Administration will be “qualified mortgages” that provide strong protection against litigation for mortgage lenders. The CFPB’s long-awaited ability-to-repay final rule provides a safe harbor for loans that meet its QM definition and also are not considered “higher-priced mortgages” under an older Truth in Lending Act regulation promulgated by the Federal Reserve back in 2008. That rule classifies first mortgages as higher-priced if the annual percentage rate exceeds the average offered rate for comparable loans by 1.5 percentage points or more. Generally, the CFPB final rule defines...

Fannie Mae and Freddie Mac in 2012 combined for the third biggest year ever in single-family mortgage-backed securities issuance, according to a new Inside Mortgage Finance market analysis and ranking. Together, the two government-sponsored enterprises pumped out a whopping $1.266 trillion in new single-family MBS last year, a 48.2 percent increase over their total production back in 2011. It marked the biggest annual output by the two GSEs since they set the all-time record of $1.912 trillion back in 2003. Last year’s total came up just short of the second biggest annual issuance on record – $1.270 trillion – set in 2002. Heavy refinance activity was...[Includes three data charts]

Principal reduction is on the rise. Sixty-six percent of Home Affordable Modification Program mods made by banks on mortgages in their own portfolios included principal reduction in the third quarter, according to the Office of the Comptroller of the Currency.This compares with 57.7 percent for the second quarter of 2012.Overall, there were 136,316 new loan mods made during the third quarter, with servicers reducing interest rates in 77.2 percent of cases. Term extensions were used in ...

A foreclosure in a neighborhood causes the price of nearby homes to drop, not because of property neglect or abandonment, but because it increases the housing supply, a new Federal Reserve Board study concludes. Consistent with the finding that a foreclosed home simply increases inventory, new listings of foreclosed homes and non-foreclosed homes each lower home-sale prices by 1.0 percent within 0.1 miles of the listing, according to the study.

Technology advances have helped most credit unions improve productivity in their mortgage origination processes, but there are significant differences among institutions and the industry as a whole could do a better job in managing the pipeline, according to an analysis by Mortgage Cadence. “While some credit unions post remarkably high productivity and correspondingly low costs to close, there is significant room for improvement,” said Mortgage Cadence, which offers an integrated loan origination system.

Fannie, Freddie ReformThe Mortgage Bankers Association has formed a special working group tasked with divining an approach to implement comprehensive reform of the GSEs, Fannie Mae and Freddie Mac. Rolled out in late December, MBA’s 17-member GSE Single Family Task Force will re-examine and add to the association’s 2009 proposal on the future of the secondary mortgage market, according to Task Force Chairman Tim Dale, executive vice president of mortgage lending at BB&T.Dale said the key focus of the task force will be on “transition.”

Most consumers have a favorable view of debt protection services for their mortgage and credit card debt obligations, despite the occasional news report of abuses in the sector, according to a new study from officials at the Federal Reserve, based on data from the Consumer Credit Industry Association.“Consumer attitudes among purchasers have not changed from the high levels of favorable views of users in the past,” said the study, which was authored by Thomas Durkin and Gregory Elliehausen...

Mortgage banking profitability soared to record levels in the third quarter, but some industry analysts say the boom may begin to taper off in 2013.The surge in mortgage banking income during 2012 came from increased secondary marketing gains as the spread between primary market rates and yields on agency mortgage-backed securities widened to historic levels.