The Federal Home Loan Banks’ Mortgage Partnership Finance program and Redwood Trust announced a number of changes this week to the MPF Direct product. Beginning Aug. 31, the loan limit will increase to $2.5 million and hybrid adjustable-rate mortgages will be eligible for delivery. The MPF Direct program was launched in 2014, with a loan limit of $729,750, the high-cost loan limit for the government-sponsored enterprises at the time. In the third quarter of 2015, the loan limit for the product was increased to $1.5 million. The loan limit for cash-out refinances is $750,000. “We continue...
With the possibility of investors transferring non-agency servicing rights away from Ocwen Financial, Altisource Portfolio Solution has put an emphasis on providing services to other companies.
Wells Fargo handled 20.2 percent of the $841.42 million in agency mortgages outstanding at the end of the second quarter of 2016 that had interest rates between 4.510 percent and 5.000 percent.
“Most real estate agents say high loan-to-value ratio mortgages are readily available, especially for homebuyers with good credit,” said Tom Popik, research director for Campbell Surveys.
The FHA this week clarified its policy on insuring mortgages with PACE (Property Assessed Clean Energy) senior tax liens to make it easier for borrowers to obtain FHA financing for such mortgages, but the mortgage and real estate industries continue to have concerns. The new guidelines address state programs where the PACE obligation is treated like a property tax with priority over an FHA lien. The program provides financing for home-energy improvements and water conservation, and is repaid through an assessment added to the property’s tax bill. The guidelines are designed...
Smaller banks and nonbanks are rallying behind legislation recently introduced to relieve community mortgage lenders from some of the scrutiny placed on larger banks. Rep. Roger Williams, R-TX, authored H.R. 5907, the Community Mortgage Lenders Regulatory Act of 2016, and emphasized that community mortgage lenders engaged in traditional mortgage lending were not responsible for the recent mortgage crisis. Scott Olson, director of the Community Home Lenders Association, told...
A recent ruling by the Washington State Supreme Court goes against servicers’ practice of changing the lock on a property before a foreclosure. While such practices are generally allowed under mortgage contracts and have been approved by other states, the Washington state court ruling is favorable to 3,600 borrowers in a class-action lawsuit and could cause further issues for servicers. Laura Jordan v. Nationstar Mortgage centered on Nationstar’s actions after the borrower defaulted on her mortgage. A vendor acting on behalf of Nationstar inspected the property, deemed it to be vacant and changed the lock on the front door. The vendor also left a lockbox on the door with the key to the new lock and the borrower was provided access to the key. Jordan represents...
The U.S. Senate last week passed legislation easing FHA rules on condominium financing even as condo reform rules are undergoing clearance at the Office of Management and Budget. H.R. 3700, the Housing Opportunity Through Modernization Act of 2016, was approved by unanimous consent. The bill passed in the House of Representatives by a vote of 427-0 back in February. Industry observers say the bill would essentially codify long-anticipated guidelines the Department of Housing and Urban Development has drafted. Among other things, the bill requires...
The Government Accountability Office said regulatory uncertainty and other barriers may inhibit the use of private flood insurance. The Flood Insurance Market Parity and Modernization Act, H.R. 2901, which passed the House unanimously in April, expands flood insurance options by including private flood insurance. The bill also lifts certain federal restrictions placed on insurance companies and gives states more flexibility to license and regulate private flood insurance. The GAO reported...
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