The Department of Agriculture’s Rural Housing Service has issued a final rule creating a certified loan-application packaging process for the agency single-family loan guaranteed housing program.Published in the April 29 Federal Register, the rule also establishes standards for packagers of loan applications, who are independent from RHS but play a key role in providing Section 502 rural home loan programs to potential homeowners. The final rule will take effect on July 28, 2015. Specifically, the rule addresses the weaknesses in RHS’ loan-application process and integrates the lessons learned from a loan-packaging pilot launched in 2010. The packager gathers and submits the information needed for RHS to determine whether a loan applicant is eligible for ...

Mortgage originators are foregoing lending to borrowers who are more likely to become delinquent to avoid strict and unrealistic FHA timelines and cost limits, according to an Urban Institute study. Results of the study, which was issued in December, were again highlighted during a recent Housing Finance Policy Center seminar on servicing at the Urban Institute in Washington, DC. Citing the study she wrote, Laurie Goodman, director of the HFPC, said regulatory uncertainty and a broken servicer-compensation model were partly responsible for tight credit. The high cost of servicing non-performing mortgages and regulatory uncertainty regarding the treatment of delinquent borrowers have made lenders apprehensive about making loans that have even a slight chance of defaulting, she said. Long foreclosure delays in judicial states, burdensome foreclosure guidelines and apparently ...

Ellington believes that one of the biggest opportunities for the company will be products geared toward self-employed borrowers.

Although the FHA has been losing ground for several years to the private MIs, the program saw a surge in refis in March...

To date, the FHFA has received 1,300 comment letters on the proposed ban on captive insurance firms.

The volume of new mortgage originations with primary mortgage-insurance coverage held steady during the first quarter of 2015, but there was a noticeable shift toward the government MI programs, according to a new Inside Mortgage Finance analysis and ranking. Private mortgage insurers wrote coverage on $45.24 billion of new conventional originations during the first quarter, a 5.3 percent decline from the fourth quarter of last year. But FHA and Veterans Administration loan originations were up over the same period, by 5.5 percent and 6.0 percent, respectively. Based on Ginnie Mae securitization data, the volume of new rural-housing loans insured by the Department of Agriculture fell...[Includes three data charts]

Underwriting standards, not a lack of income or significant student loan debt, have held back originations of mortgages to first-time homebuyers in recent years, according to industry analysts. As lenders gradually loosen their underwriting standards, originations of mortgages for first-time homebuyers are expected to increase in the coming years. In a recent brief, analysts at Capital Economics stressed that there doesn’t appear to have been a fundamental shift in homeownership aspirations, even though housing is currently slightly over-valued compared with renting. “There is...

In a recent 10-K filing Ocwen disclosed that on April 30, 2015 it announced agreements with the GSEs to sell portfolios of non-performing loan servicing rights.

Watt said GSE pay should be brought more in line with comparable private sector jobs, but no higher than what CEOs in the 25th percentile of the market make, which is roughly $7.26 million a year.

Financial consultant Paul Hindman, however, is concerned about such bonuses...