Consultant Rick Roque: “There are many ways to structure a ‘transition’ bonus, and most bonuses are only partially paid up front with the rest based on closings over a period of time.”
Fitch said it was able to gain comfort with less than a 100 percent sample size due to its on-site operational assessment of Flagstar’s procedures and controls…
Issuance of new single-family Ginnie Mae mortgage-backed securities fell sharply in the first quarter of 2018, according to a new Inside FHA/VA Lending ranking and analysis. The agency issued $92.58 billion in MBS backed by forward mortgages during the first three months of 2018. That was down 14.8 percent from the previous three-month period and represented the lowest quarterly total since early 2015. The 1Q figure is based on truncated loan amounts reported in Ginnie’s loan-level MBS disclosures. Reports with unrounded single-family loan amounts show a total of $95.75 billion in first-quarter MBS issuance, including FHA reverse mortgages. The loan-level data reveal that production fell 6.9 percent from February to March, when just $28.21 billion of Ginnie single-family securities were issued. That was the lowest monthly volume since February 2015. Both the FHA and VA programs saw significant ... [Charts]
To Fix FHA, Provide Certainty, Says MBA President. It would be inappropriate for FHA to return to pre-recession levels of insuring loans that led to many of its problems, but lenders are wary of taking up the slack, said David Stevens, president and CEO of the Mortgage Bankers Association. Speaking during a forum hosted by the National Fair Housing Alliance, Stevens echoed concerns of fellow panelists that FHA does not work as well as it should. An advocate for removal of the Home Equity Conversion Mortgage portfolio from the Mutual Mortgage Insurance Fund, Stevens said doing so would strengthen the fund and provide a more accurate picture o FHA’s forward book of business. It could also lead to the consideration of a mortgage insurance premium reduction he said. But as FHA struggles with issues hampering its ability to provide access to credit, lenders are hesitating to fill the gap because of the ...
The U.S. Department of Agriculture has announced proposed changes to the maps the Rural Housing Service uses to determine whether certain areas are eligible for its single-family and multifamily housing programs. RHS reviews the areas it covers every five years to determine which ones would be eligible for USDA home-loan guarantees. The proposed maps are based on RHS’s 2017-2018 review of data collected from the U.S. Bureau of Census 2015 American Community Survey. The ACS provides information about changes in the U.S. population, housing and workforce. The current RHS maps are based on RHS’s 2012-2013 review of the 2010 U.S. Census. The proposed maps will become effective on June 4, 2018. Properties located in areas that have been reclassified from rural to non-rural on the maps’ effective date may qualify for RHS’ housing programs if they meet certain conditions. First, the ...
A Department of Housing and Urban Development requirement for a face-to-face meeting has become quite a compliance challenge for lenders seeking mortgage foreclosure, according to legal experts. In Dan-Harry v. PNC Bank, a federal court in Rhode Island concluded that a borrower may bring a claim for damages and other remedies against a lender for failure to conduct a pre-foreclosure face-to-face meeting with the borrower – a requirement for breach of an FHA-insured mortgage. In an analysis of the court’s ruling, attorneys at the Chicago law firm Hinshaw & Culbertson said the decision is significant because the HUD regulation provides no private right of action. In addition, Rhode Island law does not recognize a cause of action for breach of good faith and reasonable diligence in foreclosure, they noted. Nevertheless, the legal experts pointed out that Rhode Island federal courts effectively ...
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