Industry groups are ramping up efforts to extend conforming loan limits currently available in high-cost markets that are set to expire at the end of the month, focusing their lobbying efforts on appropriations legislation in the House. The National Association of Realtors and the National Association of Home Builders are dou-bling their efforts to persuade Congress to extend current limits for Fannie Mae, Freddie Mac and the FHA, which top out at $729,750 for single-family units in the lower 48. Barring legislative action, the top loan limit will drop to $625,500 on Oct. 1. In addition to the lower ceiling, loan limits in most high-cost markets will...

Regulators should take stronger actions to ensure that homeowners in need of loan modification are treated fairly and that servicers increase their efforts to implement newer Making Home Affordable (MHA) programs, according to a new Government Accountability Office report. The GAO said that while the Department of the Treasury has taken a number of steps to implement its previous recommendations to improve the program, it has not yet taken steps to improve servicer oversight, among other recommendations made by the watchdog agency. Treasury began publishing quarterly assessments of servicer performance under the Home Affordable Modification Program and...

With additional rulemaking still expected from the Consumer Financial Protection Bureau to flesh out some loan originator compensation provisions of the Dodd-Frank Act, state regulators are getting ready to release their own examination guidelines related to mortgage originator compensation for non-depository institutions, based on the Federal Reserve’s rule issued earlier this year. The Conference of State Bank Supervisors and the American Association of Residential Mort-gage Regulators have been working together since May drafting guidelines for implementation of the...

The housing meltdown revealed a lot of unsafe lending practices, but some advocates say the mortgage industry may be ignoring successful strategies for expanding homeownership by restricting new lending to only those with squeaky-clean credit. “The lesson of the financial crisis can’t be that homeownership is bad, or only for a small group,” said Judith Jacobson, the deputy director and general counsel for the Massachusetts Housing Partnership during a panel discussion hosted by progressive nonprofit Center for American Progress this week. Jacobson and others described programs developed in Massachusetts and North Carolina that...

Government mortgage programs don’t just dominate the mortgage origination business, they are also sitting on a huge inventory of real estate owned properties that are clogging the housing market recovery and adding to government budget problems. That spurred the Department of Housing and Urban Development, the Federal Housing Finance Agency and the Treasury last month to look for public input on ways to minimize losses for taxpayers and increase private investment in housing, including property sales and joint ventures. The National Association of Realtors said the best way to deal with the large REO inventory is to...(includes data chart)

In order to provide a benchmark that helps the private sector price mortgage credit, policy makers need to make an effort to replicate the standardization and uniformity currently provided by agency mortgage-backed securities, the managing director of Barclays Capital told lawmakers last week.

The volume of home loans repurchased by commercial banks jumped significantly in the second quarter of 2011, but activity so far this year is still much lower than in 2010. Commercial banks reported a total of $5.84 billion in mortgage buybacks and indemnifications during the second quarter, according to a new ranking and analysis of call report data by Inside Mortgage Trends. That was up a hefty 52.4 percent from the $3.83 billion in repurchases and indemnifications reported for the first three months of the year. As of the halfway mark in 2011, banks had repurchased a total of $9.66 billion in mortgages, less than half of... [Includes one data chart]

During the past three years, the GSEs have steadily increased their commercial mortgage-backed security issuance, assuming a role of dominance that private investment banks once held, concluded a recent report by Standard & Poor’s Ratings Services.

Fannie Mae and Freddie Mac loan modification and overall loss mitigation activity declined again in the second quarter, driven by decreases in completed loan mods and forbearance plans and continuing a downward trend begun a year ago, a new analysis of data from the Federal Housing Finance Agency by Inside The GSEs finds. Total loss mitigation activity – total home retention efforts and foreclosure alternatives combined – slipped 1.5 percent in the second quarter of the year to 246,879 and was down 34.3 percent from year ago levels. Our analysis was based on the FHFA’s Second Quarter 2011 Foreclosure Prevention & Refinance Report.

Mortgage lenders and servicers with large portfolios of seriously delinquent home loans have turned to “liquidating trust” structures as a financing alternative – with good results, according to credit rating agency DBRS. So far, the performance of six nonperforming loan securitizations with 14 outstanding tranches rated by DBRS has been stable and largely within expectations at the time of rating, said Quincy Tang, the rating agency’s senior vice president of structured finance. As of Sept. 6, all rated classes of one transaction (Residential Loan Trust 2008-2) have been paid in full, said Tang. The Class A notes in...