PMI Mortgage Insurance Co. has launched its MODEL servicer program; the Dodd-Frank Wall Street Reform and Consumer Protection Act is an epic financial services law of unprecedented scale; American voters strongly support pro-housing politicians; MORE...
New federal restrictions on mortgage broker compensation will likely add momentum to the shift away from wholesale mortgage production programs and ultimately dampen MBS prepayment speeds, according to an analysis by Barclays Capital. Most major primary market lenders have been moving away from the broker market since the housing sector began to crumble in 2007. According to Inside Mortgage Finance, an affiliated newslet-ter, the broker share of new mortgage originations peaked in 2005 at 31.3 percent of primary market lending. Between 2005 and 2007, brokers accounted...
Serious delinquency rates on subprime mortgages improved in the first quarter of 2011 for a fifth consecutive quarter. However, analysts warn that the sector faces increased risks due to scrutiny from federal regulators and Congress. Meanwhile, subprime originations remain all but nonexistent, causing the amount of subprime mortgages outstanding to fall to an estimated $605.0 billion in the first quarter of 2011, according to Inside Nonconforming Markets. In 2005, an estimated $625.0 billion in subprime mortgages were originated, with another...[includes one data chart]
The Treasury Department withheld payments to Home Affordable Modification servicers for the first time last week. The delay in incentive payments to three major servicers was due to poor handling of non-agency mortgages. Bank of America, JPMorgan Chase Bank and Wells Fargo Bank will not receive HAMP incentive payments until the Treasury determines that the servicers have made improvements. Ocwen Loan Servicing was also determined to be “in need of substantial improvement” but the servicer received a pass because of issues related to...[includes one data chart]
The Department of Housing and Urban Development is in conciliation talks with 22 FHA-approved mortgage lenders about “credit overlay” practices that resulted in a denial of credit to FHA-qualified borrowers. Agreements between HUD and the lenders may be announced within the next few weeks, said a HUD spokesperson, who declined to comment further because the issue is still in mediation. Discussion between HUD and the lenders have been ongoing since the National Community Reinvestment Coalition, an association of more than 600 community-based organizations, filed individual complaints against the 22 lenders late last year for alleged ...
The Department of Housing and Urban Development has quietly announced preparations for the termination of FHA HOPE for Homeowners, a program that promised more than it could deliver. In a mortgagee letter, HUD laid out instructions on how to process cases during the program’s phase-out period. Launched in September 2008 to assist homeowners at risk of foreclosure, the H4H program will end on Sept. 30, 2011. July 29 is the last day to obtain a new H4H case number for lenders seeking to refinance borrowers into H4H loans after this date, while July 16 is the deadline ...
A proposed rule that would allow lenders in the federal Farm Credit System to participate in the FHA mortgage insurance programs is being closely scrutinized at the Department of Housing and Urban Development. The measure is one of several regulatory actions taken by HUD in response to President Obama’s directive in January calling for a government-wide review of rules and regulations. The review is aimed at weeding out rules that are outdated, unnecessary, excessively burdensome, and redundant or in conflict with other federal rules. Twenty rules, including the proposed FHA approval for FCS lenders, are now being streamlined or rewritten to ease the regulatory burdens of small businesses and spur economic growth. The proposed changes build ...
The Department of Housing and Urban Development is finalizing proposed guidelines streamlining reporting requirements for small FHA-approved lenders. Under the proposed guidelines, federally supervised, FHA-approved lenders with under $500 million in total assets would have alternative requirements for reporting their financial condition. FHA lenders are currently required to submit audited financial statements as a condition for FHA lender approval or renewal. In lieu of an audited financial statement, the proposed rule would require smaller supervised lenders to submit a copy of the unaudited regulatory report they provide ...
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