Mortgage loans with a Section 502 guarantee are a great deal for first-time homebuyers in rural areas, said Michelle Corridon, deputy director of the Single Family Housing - Guaranteed Loan Division with the U.S. Department of Agricultures’ Rural Development. No downpayment is required on a 30-year fixed-rate, USDA-backed mortgage loan, Corridon noted. Loan closing is fast because closing is fully automated, she added. Approximately 99 percent of USDA lenders are using paperless, automated loan closing, for which they pay a certain fee. Loan-note guarantee is also available online. USDA loans are typically purchase transactions. Of these, 85 percent are first-time homebuyers. There are few refinances, Corridon noted. Approximately 10 percent of purchase loans are for new construction. The product caters to low- and moderate-income households in ...

Ginnie Mae has announced revised rules for issuers seeking approval of changes in their business status due to an adversarial relationship with agencies, mergers, asset transfers or a change in ownership or control. The agency has been receiving many issuer requests and they are getting complicated, according to Ted Tozer, Ginnie Mae president. Issuers must comply with the updated guidance in order to remain an eligible participant in the Ginnie Mae mortgage-backed securities program. The guidance took effect immediately. Previously, issuers were required to notify Ginnie Mae in writing within five days of any material adverse change in their business relationships with Fannie Mae, Freddie Mac, FHA, VA, Rural Development, the Department of Housing and Urban Development’s Office of Public and Indian Housing or any other regulatory agency. Under the revised guidance, the ...

The FHA has revised the required time frame for mortgagees to submit the original promissory note associated with a partial claim and laid out the penalties for noncompliance. The guidance became effective on Sept. 1, 2015. On the same day, The Department of Housing and Urban Development issued letters demanding full reimbursement of all amounts associated with overdue partial-claim documents after Sept. 1. The guidance also reminded lenders of the procedures for preparing and submitting partial-claim documents to HUD’s loan-servicing contractor. Proper recordation and submission of partial-claim documentation will ensure HUD’s interest is protected, according to the guidance. Currently, FHA has a high volume of missing partial-claim documents due to lenders’ failure to follow rules for recording and submitting security instruments. The revised guidance also contains directions for executing partial-claim docs and reconciling ...

HUD Announces New Mortgagee Compliance Manager. The Department of Housing and Urban Development has hired Information System & Networks Corp. (ISN) as its new mortgagee compliance manager. ISN took over from Michaelson, Connor & Boul, which was awarded the first MCM contract in 2010, when HUD reorganized its Management and Marketing (M&M) I and II programs under a new M&M III. As mortgage compliance manager, MCB performed real estate acquisition-to-disposition servicers for HUD, among other things. ISN effectively took over Oct. 1, assuming all pre- and post-conveyance activities including the following: requests for more time to convey; processing of occupied conveyances; approval of reimbursable expenses for preservation and protection, particularly amount in excess of allowable P&P expenses (including Home Equity Conversion Mortgages); and requests to ...

The IG was actually looking into possible down payment assistance violations at another lender and decided to audit loanDepot because of its high volume of loans with those features.

One industry observer who anticipates a big-margin vote indicated he expects the bill will split rank-and-file Democrats from their leadership caucus.

The deal includes a provision allowing Bayview to sell loans out of the MBS one year from now.

Another noticeable shift from 2013 to last year was the further deconsolidation of originators...

An earlier version of the bill that Corker tried to fast-track through the Senate did not include the prohibition on using g-fees to pay for unrelated government spending.

One source, angered by Cordray's comments, said, "No, Mr. Director. Those concerns have eliminated non-QM loans, which come with protection against frivolous lawsuits. That’s why no one except a perfect borrower can get a loan…”