Michael Levitis, principal of the Mission Settlement Agency (a debt-settlement company), was slapped with a nine-year prison sentence and ordered to pay $2.2 million in restitution and a fine of $15,000 after pleading guilty to several charges brought in response to the CFPB’s first publicly announced criminal referral to the U.S. Department of Justice last year. Levitis pled guilty to one count of conspiracy to commit mail fraud and wire fraud, and another count of conspiracy to commit wire fraud. He has been ordered to surrender for service of his sentence on Feb. 23, 2015, at an institution to be determined by the state Bureau of Prisons. Upon release from imprisonment, Levitis will be on supervised release for a term ...
Freddie’s program, which is called “Home Possible Advantage,” requires a minimum credit score of 660 for purchase loans, and 680 for "no cash-out" refis. This is only for manually underwritten loans.
The provision, expected to raise $30 million for FHA quality assurance efforts, would allow the Department of Housing and Urban Development to charge a fee of no more than 4 basis points.
The FHA has extended a temporary waiver of insurance requirements to allow certain condominium projects or developments that otherwise would not qualify for mortgage insurance to remain eligible. Temporarily waiving provisions pertaining to master/blanket hazard, flood, liability and other insurance requirements will help ensure the availability of affordable housing units, including condos, to people who cannot afford to purchase a home or could not qualify for a mortgage loan, the agency said.The temporary waiver was issued on Nov. 27, 2013, and now has been extended to Aug. 31, 2016. It allows individual-unit owners to obtain and maintain their own insurance coverage on their condo unit.The waiver also requires condo projects to maintain a master/blanket insurance policy for hazard, flood and liability risks and any other insurance that may be ...
Final PMIERS Rule Expected in 1Q15. The Federal Housing Finance Agency has revised its timeline for publishing a final version of the Private Mortgage Insurance Eligibility Requirements, which Fannie Mae and Freddie Mac proposed in July at the direction of the FHFA. The PMIERS will establish capital and other requirements for private mortgage insurers. In a statement, industry trade group U.S. Mortgage Insurers said it has received word from the agency that the final PMIERS would not be published until at least late in the first quarter of 2015. The FHFA initially indicated that a final rule would be issued by yearend 2014. The USMI reiterated its support for an updated PMIERS. Mortgage Executives Concerned About G-Fee Increase. A survey of mortgage executives at this year’s Mortgage Bankers Association annual conference found 53 percent saying that ...
The delinquency rate for FHA-insured single-family mortgages increased slightly from June through September, with a slight uptick in the percentage of loans 30 to 60 days past due, according to an Inside FHA Lending analysis of agency servicing data. As of Sept. 30, FHA delinquencies across the board rose to 13.57 percent from 13.31 percent at midyear due to a slight pickup in 30- to 60-day delinquencies over the three-month period. The share of loans 30- to 60-days delinquent stood at 6.55 percent as of Sept. 30, up from 6.17 percent on June 30. Serious delinquencies dropped slightly to 7.02 percent from 7.14 percent over the same period as the FHA’s inventory of legacy loans continued to clean out and the more recent vintages continued to perform well. The overall foreclosure rate for FHA-insured loans fell to 2.15 percent from 2.30 percent, reflecting the ... [1 chart]
Unless contravened by another federal or state statute or jurisdiction, FHA lenders must use the agency’s adjusted fair market value (AFMV) for all foreclosure sales and post-foreclosure sales associated with defaulted FHA loans, according to the FHA. The FHA said it issued guidance because more lenders are using FHA procedures regarding claims without conveyance of title. Before applying the AFMV, lenders must ensure that th loan’s FHA insurance is still active and that the loan is not subject to indemnification. Both items may be verified by checking Neighborhood Watch. Working with the borrower, the lender must make sure that all possible applicable home-retention and loss-mitigation options have been considered and explored before moving to an AFMV alternative. In addition, the lender must determine that the borrower’s case does not meet the criteria for a pre-foreclosure sale or deed-in-lieu of foreclosure. Mortgagees may not proceed with any foreclosure sale until ...
A provision on lender-placed insurance in the servicing segment of the FHA’s draft Single Family Housing Policy Handbook appears to contradict the agency’s previously stated position on LPI, according to the American Bankers Association. The ABA urged the FHA to retain the current policy regarding a lender’s discretion in requiring hazard and flood insurance for loans the agency insures. In a comment letter, the ABA expressed concern about the FHA’s new proposed standard for LPI, which could limit the amount of LPI coverage a lender or servicer could impose on a borrower to the outstanding balance of the loan. It would apply broadly to hazard insurance, including flood insurance. There are several problems with this approach, the ABA said. The group noted that Congress had established a standard which requires any home construction in a special flood hazard area (SFHA) to obtain “at least” ...
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