Effective Oct. 1, 2016, the U.S. Department of Agriculture’s Rural Housing Service will reduce the one-time upfront funding fee for single-family housing guaranteed loans to spur rural home-loan financing. The RHS will cut the funding fee from the current rate of 2.75 percent of the loan amount to 1.0 percent. The agency notified lenders of the change last June. In addition, the fee for servicing USDA-guaranteed loans will decrease to 0.35 percent from 0.50 percent. That comes to about $30 per month per $100,000 in loan balance. The servicing fee is paid in 12 equal installments and rolled into the monthly mortgage payments. The RHS has raised both fees a number of times during the past several years to maintain the section 502 Single Family Housing program, which does not require borrowers to make any downpayment, and to avoid congressional appropriation. Last year, the RHS raised its upfront funding fee for a purchase loan, from 2.00 percent to 2.75 percent. Another reason the RHS cited for the fee reduction is that rural housing delinquencies and foreclosures are at historic lows.
Candidate Clinton noted: “But when community banks and credit unions offer mortgages, they’re looking to invest in their neighborhoods and communities to help them grow and prosper…”
Meanwhile, one mortgage executive told us that earlier in the year Impac approached his shop about a sale. This executive, who did not want his company identified, turned Impac down…
Wells Fargo was hit with fines totaling $185.0 million this week for secretly opening unauthorized accounts for customers at the bank. Regulators said the bank’s incentives for cross-selling financial products pushed employees at Wells to open unwanted deposit and credit card accounts for customers of the bank. The fines were imposed by the Consumer Financial Protection Bureau ($100.0 million, the largest penalty ever imposed by the CFPB), the city and county of Los Angeles ...
Angel Oak Mortgage Solutions has significantly increased its nonprime wholesale lending this year, according to an offering document for the $132.65 million nonprime mortgage-backed security recently issued by Angel Oak Capital Advisors. AOMS originated $222.25 million in nonprime wholesale originations in the first half of this year, nearlyl matching its $224.16 million total for all of last year. But retail production at Angel Oak Home Loans has declined ...
A number of non-agency lenders are looking to originate mortgages for investment properties using a debt-to-income ratio based on income from the property rather than the borrower’s income, according to Moody’s Investors Service. “Using property DTI underwriting on loans secured by single investment properties introduces risks stemming from the lack of visibility on a borrower’s other debt obligations relative to a steady source of income that lenders can ...
Homebuyers in two housing markets encompassing 13 states relied more on FHA and VA than other types financing, according to a new industry study of new single-family homes started in 2015. A study by the National Association of Home Builders found, among other things, that government-backed purchase lending and other forms of non-conventional mortgage financing remained elevated in 2015. For example, homebuyers in the South Atlantic and West South Central regions favored FHA and VA loans over other types of home-purchase financing. States in the South Atlantic region include Delaware, Florida, Georgia, Maryland, North Carolina, South Carolina, Virginia, and West Virginia. Washington, DC, is also in this region. West South Central states are comprised of Arkansas, Louisiana, Oklahoma and Texas. Together, the two regions accounted for more than 26 percent and 21 percent of the ...
RSS