New York has enacted legislation redefining a reverse mortgage as a “home loan.” With the new law, statutory 90-day pre-foreclosure notices and certificates of merit would be required for all reverse-mortgage foreclosures in the Empire State. New York’s foreclosure settlement conference law has incorporated the new definition by reference, removing any doubt that such meetings are required in most reverse-mortgage cases, said industry attorneys. Gov. Andrew Cuomo, D, signed the amendment into law on April 12, 2018, though it is deemed to have been in full force and effect as of April 20, 2017. However, the pre-foreclosure notice requirement for reverse mortgages has an effective date of May 12, 2018. For actions commenced after May 12, the new state law requires lenders, servicers or assignees to provide a pre-foreclosure notice at least 90 days before initiating legal action against the borrower at the ...
VA Announces Changes to Processing Site Condos in Michigan. The Department of Veterans Affairs has announced new guidance requiring lenders to process site condominium loans in Michigan in a manner similar to a single-family detached home. The VA made clear that the change covers only Michigan. All other geographical areas are excluded. A “site condominium” is a single-family dwelling that is totally detached from any other structure, such as shared garages or any other attached buildings, and encumbered by a declaration of condominium covenants or condo form of ownership. Historically, many development projects in Michigan have offered single-family detached housing as site condominiums as a way to provide housing through a faster and more efficient development process. As condo developments, site developments are subject to VA’s condominium approval and processing ...
Fannie Mae and Freddie Mac issued a record $4.53 billion of new credit-risk transfer debt notes during the first quarter of 2018, according to an Inside MBS & ABS analysis. [Includes one data chart.]
Fannie Mae and Freddie Mac don’t act like two companies in their 10th year of government conservatorship, waiting for federal policymakers to figure out what to do with them.
The tailored Dodd-Frank reform bill signed into law by President Trump this month should be a boon to investors in Ginnie Mae securities because it will reduce loan churning, but there could be some bumps along the road until all the details are ironed out.
The Structured Finance Industry Group continues to work on getting MBS and ABS classified as “high quality liquid assets.” The industry group has renewed hope for the ongoing effort due to the recent passage of regulatory relief in Congress.
In what is largely an intellectual exercise, Federal Housing Finance Agency Director Mel Watt said last week that the agency will propose a new risk-based capital rule for Fannie Mae and Freddie Mac even though it won’t apply while they’re in conservatorship.
A subsidiary of Singapore-based Temasek Holdings is set to issue an ABS backed by cash flows from private-equity funds. The deal, which will include tranches in Singapore dollars and U.S. dollars, received preliminary A- ratings.
A Washington state appeals court recently upheld a lower court decision to dismiss non-agency MBS claims filed by the Federal Home Loan Bank of Seattle against RBS Securities, Inc.
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