Congress explicitly exempted FHA and Department of Veterans Affairs loans from the definition of “qualified residential mortgage” in the Dodd-Frank Wall Street Reform and Consumer Protection Act. While those government loans will not be subject to the risk-retention requirements for mortgage securitizations, the proposed QRM safe harbor for... [Includes one graph]

The package of government-sponsored enterprise reform legislation introduced into the House Financial Services Committee last week dominated headlines, but sources on Capitol Hill said forthcoming legislation will also aim to tighten FHA underwriting in some manner, continuing to protect the program’s...

Originations of FHA-insured mortgages declined in early 2011, and February’s total was the lowest in nearly three years. Overall mortgage market lending dropped in the fourth quarter last year, and the industry is in the throes of reforming the system while trying to urge back the private sector. The $15.0 billion in... [Includes one data chart and one graph]

All FHA-insured mortgages made after April 18 will face higher annual premiums, the latest fee structure change in a series of adjustments over the past year. Early indications from Department of Housing and Urban Development data show that the measures have begun to accomplish both of the agency’s goals – to shore up...

Risk-retention requirements proposed by federal regulators last week strongly favor the government-sponsored enterprises over non-agency securitization, according to industry analysts. The pristine mortgages in Redwood Trust’s recent jumbo securitization would not completely meet the standards and the vast majority of... [Includes one graph]

Real-estate investment trusts that focus on the nonconforming market are positioned to capitalize on risk-retention requirements proposed last week by federal regulators. But banks with large balance sheets may be less able to access non-agency securitization, according to industry analysts. The qualified residential mortgage proposal is likely to...

The decline in high-cost conforming loan limits set to occur later this year will affect a small fraction of the more than 300,000 counties in the U.S., according to an analysis released last week by the Federal Housing Finance Agency. However, concerns remain that the non-agency sector will not adequately serve...

Non-agency mortgage-backed securities investors do not have enough confidence to allow for accelerated reform of the government-sponsored enterprises, according to Michael Berman, chairman of the Mortgage Bankers Association. “The key is the private markets have spoken that they don’t have confidence,” Berman said last week in...

Hoping to capitalize on the growing market for special servicing, Walter Investment Management announced last week that it plans to acquire Green Tree Credit Solutions. Walter said it will purchase the special servicer for $1.065 billion and Walter will have to drop its status as a real-estate investment trust. Green Tree currently services...

The Home Affordable Modification Program continues to be criticized for the pace of activity, but one segment of the market has embraced HAMP: servicers with loans in portfolio. While HAMP accounted for 27.0 percent of all mods completed by major banks and thrifts in the fourth quarter of 2010, HAMP accounted for 50.2 percent of...