Jumbo mortgage originations held up better than the overall market in early 2011, but more of the strength in the sector came from agency programs, according to a new Inside Mortgage Finance ranking and analysis. Mortgage lenders originated an estimated $51.2 billion of new loans that exceeded the bench-mark $417,000 conforming loan limit during the first quarter of 2011. That was down 7.8 percent from the fourth quarter of last year, a much better showing than the 35.0 percent downturn in total mortgage originations during the same period. In fact, loans exceeding $417,000 accounted for...[includes two data charts]

The Congressional Budget Office is recommending changes in how the government accounts for programs that dominate the residential mortgage market, which could make the FHA program less at-tractive, politically, and shape the post-Fannie/Freddie market. In a pair of recent reports, the CBO said the government should adopt fair-value accounting for assessing the cost of the FHA, Fannie Mae and Freddie Mac in the federal budget. Congress currently uses special rules mandated by the Federal Credit Reform Act of 1990 in creating annual budgets for the FHA, while the government-sponsored enterprises are...

Federal banking regulators extended the comment period for their controversial risk-retention proposal to Aug.1 after meeting with the American Bankers Association, the Mortgage Bankers Association, the National Association of Realtors and consumer groups last Thursday. The proposed rule generally would require sponsors of asset-backed securities to hold on to a minimum 5 percent of the credit risk of the assets underlying their securities. Among the most controversial aspects of the proposal is its...

Weichert Financial/Mortgage Access Corp., an agency/jumbo mortgage lender in 43 states, reached a settlement with the banking regulators of 10 states after a multi-state examination found numerous compliance and internal control deficiencies, including the use of an “interstate lending desk” to facilitate the origination or completion of mortgage applications by originators that were not licensed in the appropriate jurisdictions. “The multi-state mortgage examination program was initiated to enhance consumer protection, foster a culture of compliance within the industry, and hold...

The Department of Housing and Urban Development is cracking down on discriminatory practices against expectant mothers as it announced charges filed against a private mortgage insurance company and a major lender as well as a $750,000 settlement agreement with another lender for similar offenses. During a news conference last week, HUD officials laid out the department’s charges against Mortgage Guaranty Insurance Corp., PNC Mortgage and others for allegedly discriminating against pregnant loan applicants in violation of the Fair Housing Act. The FHAct prohibits...

Consumer and civil rights groups are up in arms over the Office of the Comptroller of the Currency’s recent interpretation of preemption under the Dodd-Frank Act, which would allow the OCC to generally retain its existing preemption regulations. The uproar stemmed from a letter the OCC sent to certain members of Congress on May 12 lay-ing out the agency’s views of its preemption powers under the new preemption provisions of Title X of the Dodd-Frank Act. Those views have been embodied in a proposed OCC rulemaking implementing several DFA provisions, including...

The Home Affordable Refinance Program generated 8.2 percent less business during the first quarter of 2011 than in the previous three-month period, according to new government data. Although overall HARP activity slowed in early 2011, there was a measurable increase in refinances of performing Fannie Mae and Freddie Mac loans that had current loan-to-value ratios exceed-ing 105 percent. But such loans accounted for only 1.7 percent of total refi activity by the two govern-ment-sponsored enterprises. HARP transactions accounted for...[includes one data chart]

The Office of the Comptroller of the Currency has issued a proposed rule that features some important changes to national bank preemption and the agency’s visitorial authority in the wake of the Dodd-Frank Wall Street Reform and Consumer Protection Act. But industry legal experts say it’s too soon to tell what kind of effect the rule might have on the mortgage lending market or whether it may prompt charter movement among financial institutions...

In an unusual convergence, consumer advocacy groups have joined with mortgage lending and real estate interests to warn federal regulators about a host of negative consequences with their interagency proposed rulemaking to implement the risk retention and “qualified residential mortgage” provisions of the Dodd-Frank Wall Street Reform and Consumer Protection Act...

Mortgage lenders have a number of questions about the two new prototype disclosure forms circulated for public comment recently by the Consumer Financial Protection Bureau, but none of the issues appears to be a deal-breaker...