Treasury controls the senior preferred stock of the GSEs. The junior preferred and common continues to trade in the over-the-counter market and through private transactions. The latter two classes of stock are considered speculative in nature.
The FHA’s 203(k) Property, Repair and Rehabilitation program saw a significant increase in activity in the third quarter of 2016, both relative to the previous quarter and from the same period a year ago. Origination of FHA-insured fixer-upper loans jumped 16.2 percent from the previous quarter, bringing the nine-month production total to $2.4 billion. On a year-over-year basis, volume rose 6.9 percent. The top five FHA 203(k) lenders saw a 52.5 percent increase in originations in the third quarter, totaling $202.1 million. Year-over-year, production by the same group was off by 13.1 percent. Purchase loans accounted for $2.2 billion of 203(k) mortgages originated by lenders over the nine-month period while refinance rehab loans accounted for $237.9 million. Billion-dollar weather and climate disasters may have contributed to the surge in 203(k) business. As of September 2016, 12 weather and ... [Chart]
The Congressional Budget Office is looking for ways to reduce the budget impact of government-backed mortgage programs and recommends that Fannie Mae and Freddie Mac increase their guarantee fees and/or significantly lower their loan limits. But the CBO admits those changes would result in raising the cost to borrowers and could potentially restrain the housing market. Under CBO scorekeeping, MBS guarantees provided by the two government-sponsored enterprises from 2017 to 2026 will cost the government $12 billion. Reducing subsidies also would help renew private sector participation in the secondary market, the CBO said. It proposes...
Corrections to 2017 Nationwide Forward Mortgage Limits. The FHA found some errors in the previously announced 2017 nationwide loan limits for forward loans.The error in Mortgagee Letter 2016-20 pertains to an incorrect limit ceiling for Alaska, Hawaii, Guam? and the U.S. Virgin islands, which are identified as “special exception areas” due to higher construction costs in these areas.FHA will issue another mortgagee letter announcing the correction in special exemption areas in the future. The agency further noted corrections to the List of Increased Loan Limits CY16 to CY17 chart, which has been updated to reflect the correct loan limits for 2017. FHA is urging lenders to discard any previous versions. Requirements for Notification, Evaluation and Reduction of Lead-Based Paint Hazards in VA Properties. The Department of Veterans Affairs has updated guidance governing lead-based paint and/or hazards caused by lead-based paint in federally-owned housing under private management. The guidance updates and implements changes that have occurred since the rescission of the last guidance in 2004. Use of E-Signatures in VA-Guaranteed Home Loans Extended for Two More Years. The VA has extended the use of electronic signatures in ...
Housing counselors participating in the Department of Housing and Urban Development’s various programs must be certified to offer counseling services to consumers, according to a final rule issued this week by the agency. In order to become certified, housing counselors must pass a standardized written examination and work for a HUD-approved housing counseling agency (HCA). Applicants must demonstrate proficiency in six areas of housing counseling: financial management, property maintenance, responsibilities of homeownership and tenancy, fair housing laws and requirements, housing affordability, and avoidance of mortgage delinquency, eviction and default. Despite its recent release, the final rule will take full effect three years following the announcement of the certification exam. HUD will offer intensive training and study resources in English and Spanish to ...
The nomination of Dr. Ben Carson to head the Department of Housing and Urban Development has garnered mixed responses from stakeholders, making the choice of key subordinates more crucial to a successful tenure. Stakeholders are willing to give Carson, a pediatric neurosurgeon, a chance despite his inexperience in civil service and in running a federal agency. They say, however, that Carson’s success as President-elect Donald Trump’s housing chief will likely depend on the people who are going to be named as his assistant secretary for housing, FHA commissioner, and Ginnie Mae president. “The key positions need to be filled by people with deep industry experience and understanding of the primary and secondary mortgage markets and housing overall,” said an industry observer. So far, only Carson has been named for an executive position at HUD. The positions of ...
A recent ruling by Florida’s Fifth Court of Appeal, if finalized, will affect any FHA foreclosure case that references the Department of Housing and Urban Development’s mandatory face-to-face interview with borrowers, according to industry attorneys. In Palma v. JPMorgan Chase Bank, Nat’l Ass’n, et al., the state appellate court found that HUD’s face-to-face interview requirement is “a condition precedent to foreclosure” for Florida mortgages that specifically incorporate the HUD regulation. Prior to the decision, no Florida appellate court has held that HUD’s requirement constitutes a condition precedent to foreclosure, according to attorneys with the Richmond, VA, law firm McGuireWoods. “Although this decision is not yet final and rehearing is likely, it has far-reaching impacts on the conditions and evidence required for foreclosure trials throughout Florida and is the ...
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