One big positive for lenders: the mortgage industry could see a reduction in new rule-making from HUD and perhaps a reversal of certain regulations promulgated during the Obama administration.
The change – whose likelihood was first reported by Inside Mortgage Finance last Thursday – affects new loans with a closing/disbursement date of Jan. 27, 2017.
VA Extends Making Home Affordable Program. The Department of Veterans Affairs has extended the Making Home Affordable program to Oct. 1, 2017. The program was set to expire on Jan. 1, 2017. USDA Approves NewFed Mortgage to originate Section 52 Guaranteed Rural Housing Loans. The U.S. Department of Agriculture has approved NewFed Mortgage Corp., a multi-state residential mortgage lender, to originate USDA loans. Based in Danvers, MA, retailer NewFed offers FHA, VA, USDA, conventional and jumbo mortgage products. Reviews Genworth Financial’s Proposed Sale to Chinese Conglomerate. Fannie Mae has approved Arch Capital’s acquisition of ...
United Shore Financial Services of Troy, MI, has agreed to pay $48 million to resolve allegations of FHA-related fraud, adding to the more than $7 billion in settlements and judgments the Department of Justice has collected since 2009. United Shore, parent company of United Wholesale Mortgage and Shore Mortgage, was accused of improperly originating mortgages and falsely certifying compliance with FHA requirements. Originated between Jan. 1, 2006, and Dec. 31, 2011, the loans eventually turned bad, resulting in significant losses to the FHA insurance fund. The complaint did not specify the number and total amount of the bad loans United Shore originated or the size of FHA’s losses on those loans. United Shore was charged with violation of the False Claims Act, becoming the latest financial institution to join a growing list of FHA lenders that have opted to settle, rather than litigate, ...
With industry and lawmakers focused on the confirmation hearing next week of President-elect Donald Trump’s nominee to head the Department of Housing and Urban Development, speculation as to who might become Dr. Ben Carson’s top deputy and FHA commissioner has apparently eased. After weeks of speculation, the list for HUD deputy secretary is down to three rumored contenders: Brian Montgomery, former assistant secretary and FHA commissioner; Pam Patenaude, president of the J. Ronald Terwilliger Foundation for Housing America’s Families; and Rick Lazio, a former congressman from New York and a housing finance attorney. Like Montgomery, Patenaude has experience at HUD, serving as assistant deputy secretary for field policy and management. She has extensive experience in housing as an executive vice president at Urban Land Institute and director of housing policy with the ...
The lack of experience in housing and mortgage financing matters could become a sticking point with Dr. Ben Carson, President-elect Donald Trump’s nominee for Housing and Urban Development secretary, during his Senate confirmation hearing on Jan. 12, according to stakeholders. “Democrats, in particular, will want to know his credentials and positions on various housing and enforcement issues,” said an industry observer. “There is doubt whether Carson can address such questions positively and specifically. ‘Living for a while in public housing’ is not a qualification to run HUD or oversee FHA for that matter.” However, Trump’s selection of Carson and other conservatives for cabinet positions signals his intent to govern from the right – a complete reversal from the eight years under President Obama. Notwithstanding his lack of housing expertise, Carson is on the path to promote and ...
The initial material defect rate for FHA-insured loans targeted for a quarterly post-endorsement review increased to 53 percent in the third quarter from 50 percent in the previous quarter, according to test results. Published in the FHA’s quarterly Lender Insight, the results were from post-endorsement technical reviews conducted between July 1, 2016, and Sept. 30, 2016, on 5,973 FHA loans. The initial material defect rate appears to be trending upward since June 2016, when it had stayed flat at 47 percent over the previous eight quarters. The latest loan sample was comprised of 75 percent purchase loans, 10 percent streamline refinances, 7 percent rate-and-term refis, and 8 percent Home Equity Conversion Mortgage loans. Of the targeted loans, 23 percent met FHA requirements but an equal percentage were found to be “deficient,” while 12 percent were deemed “unacceptable” due to ...
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