The Inspector General of the Department of Housing and Urban Development called on the FHA to clean up and update its shared database of federal debtors in default, including FHA borrowers, to ensure the information it holds matches data in the FHA’s default and claims systems. An audit by HUD’s IG found that the Credit Alert Verification Reporting System (CAIVRS), which lenders use to screen delinquent federal debtors from obtaining any more government-backed loans, did not contain default, foreclosure and claims information for more than 260,000 borrowers. As a result, ineligible borrowers were able to obtain new federal loans and loan guarantees. The IG estimates...

SunTrust Mortgage will pay $320 million to resolve a criminal investigation and allegations that the bank misled homeowners interested in the Home Affordable Modification Program, the Department of Justice announced late last week. In the first settled case of its kind, SunTrust allegedly misrepresented how long it would take to determine if a borrower was qualified for HAMP and how long the trial period would last. “Specifically, SunTrust made...

An industry that is used to reading about MERS’ court victories was stunned last week after a federal court judge in Pennsylvania found Merscorp Inc. and its electronic mortgage registry system in violation of state recording laws for real estate properties. While the ruling by U.S. District Court Judge J. Curtis Joyner may be appealed, MERS could be held liable for its role as an “agent” for member-lenders involved in property transfers and for alleged unjust enrichment, according to legal experts. The case was brought...

We know of some veteran mortgage bankers who believe the “fix and flip” housing market is getting overheated. One lender told us he fears a severe correction could hit California…

At the very least, MI firms must have $400 million in capital, and $500 million if the company is start-up mortgage insurer.

Marc Savitt, president of the National Association of Independent Housing Professionals, said he is seeing more lenders entering the wholesale channel. Most are nonbanks.

Non-QM origination volume could rise above $400 billion a year if the GSEs are no longer in conservatorship. Of course, Fannie and Freddie are nowhere close to doing that...

Impac anticipates that 90 percent of its non-QM volume will come through the correspondent and broker channels.

Over the past six months, many nonbanks have moved to sell MSRs as a way to remain cash flow positive in a tough origination market.

“Under the proposed amendment, lenders who pursue these deceptive practices may receive a safe harbor for these transactions,” the CSBS said.