In the past, when refinancing booms ended, it was inevitable that some lenders would “expand” their underwriting standards to maintain production volume, sometimes with mixed results. But that didn’t occur in the downturns following a series of refi waves since the housing bust of 2008.
Fannie Mae and Freddie Mac this week introduced another new, simplified loan modification program designed to help troubled borrowers avoid foreclosure and stay in their homes at a time when loss mitigation activity by the two government-sponsored enterprises appears to be losing steam. (Includes one data chart)
The Federal Housing Finance Agency this week sought comment on a proposal that would bar servicers from participating in lender-placed insurance through reinsurance or from receiving any commission or fee for placing or maintaining such type of insurance on mortgages.
Most Freddie Mac servicers are not complying with reporting requirements that seek to catch servicing fraud and regulatory violations, a mandate that falls under the Federal Housing Finance Agency’s Servicing Alignment Initiative, according to a new audit. The FHFA Inspector General separately slammed the regulator for failing to “thoroughly oversee” how the two government-sponsored enterprises monitor their seller/servicers’ compliance with contractual agreements.
Bank and thrift holdings of first-lien mortgages increased in 2012 even as major banks sold sig-nificant amounts of troubled loans. The growth was driven by Wells Fargo and a number of mid-sized banks, holding certain conforming loans in portfolio along with non-agency originations.
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