Lenders will be asking the Department of Housing and Urban Development to clarify the eligibility of borrowers with deferred immigration status for an FHA-insured loan. A mortgage industry trade group is currently drafting a letter on “a series of technical FHA handbook recommendations,” including greater clarity on loan applications submitted by borrowers registered under the government’s Deferred Action for Childhood Arrivals (DACA) program. DACA status was offered to children who were brought illegally into the U.S. by their parents or guardians but have been in the country for most of their lives. The program was created by the Obama administration as a way for recipients to work legally in the country while Congress could agree on what to do with them. The program faces uncertainty after President Trump rescinded it in September last year as part of his administration’s zero-tolerance immigration ...
The U.S. Department of Agriculture wants to begin charging lenders a fee on each guaranteed rural-housing home loan beginning Jan. 2, 2019, to fund future information-technology upgrades. In a notice published in the July 13 Federal Register, the agency said it expects to levy a $25 user fee for using the Rural Housing Service’s automated loan-guarantee systems. Comments are due Sept. 11, 2018The fee collection is authorized under the 2016 Housing Opportunity Through Modernization Act as a “technology fee” to improve program delivery and “reduce burden to the public.” The authorized fee can be up to $50 per loan. It will be collected at closing. The Department of Housing and Urban Development has been trying unsuccessfully to obtain authority from Congress to charge a similar fee to modernize its aging information technology. The USDA said it would notify lenders before the ...
The Mortgagee Review Board’s improvement of its processes and use of administrative actions has greatly eased its backlog of lender recertification cases, according to the Department of Housing and Urban Development’s internal watchdog. An audit by HUD’s inspector general found a vastly improved enforcement of MRB mandates and application of penalties to lenders compared to previous findings. An analysis of the board’s FY 2016 activities found, among other things, that 19 lenders with the same violation received the same penalty. The report attributed the change to the board’s decision to assign staff to implement recommendations in the IG’s evaluation report in May 2009. The 2009 audit raised concerns about the speed of the MRB process, the number of cases on which the board rules, and the magnitude of penalties it levies. The MRB rules on cases against FHA lenders where there ...
More than half of FHA-insured loans analyzed for material defects have been mitigated over a 12-month period, according to the Department of Housing and Urban Development’s latest quarterly loan-review analysis. Approximately 31,396 loans were analyzed over four quarters for possible defects, beginning in the third quarter of 2017 and ending the second quarter of 2018. Approximately 59.8 percent of the reviewed loans were initially deemed unacceptable. HUD data showed that most, 54.1 percent, of the loans reviewed have been successfully mitigated. The report provides a quarter-by-quarter snapshot of the FHA’s Loan Review System results. Net defects represent outcomes after lenders have implemented methods and techniques to mitigate or remediate the initial findings. Of the reviewed loans, 24.7 percent were conforming while 15.5 percent were found to be deficient. About 0.2 percent of loans were ...
Angel Oak Companies this week reported record non-QM originations of $512.0 million for the second quarter, giving it an annual run-rate of more than $2 billion – another bullish sign this fledgling sector will post stronger growth rates than conventional and government lenders in the quarters ahead.
First Republic Bank and Flagstar Bank increased their originations of jumbo mortgages during the second quarter of 2018. First Republic funded $3.13 billion in single-family originations during the quarter. Jumbos account for the vast majority of its production. Originations by First Republic were up by 34.3 percent from the previous quarter and up by 2.6 percent from the second quarter of 2017. Jim Herbert, chairman and CEO of First Republic, said the bank was able to boost production even though ...
There’s a sharp divide in the mortgage industry regarding the prospects for originations of non-qualified mortgages. Smaller nonbanks that focus on such products have high hopes for the non-QM sector while larger lenders have low expectations. Justin Mahoney, a senior portfolio manager at SG Capital Partners, a non-QM lender, noted that the nonprime mortgage originations market is the only lending sector that hasn’t recovered since the financial crisis. “It represents a real growth opportunity ...
Lending units affiliated with Angel Oak Companies reported a record $512.0 million in originations of non-qualified mortgages for the second quarter of 2018, putting the nonbank on pace to top $1.0 billion in production this year. Angel Oak’s non-QM production increased by 52.0 percent from the previous quarter and nearly doubled its originations of a year ago. Angel Oak’s various production entities added 104 employees during the second quarter for a total of 527 staff members ...
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