Small community bankers told CFPB officials many of their colleagues are wary of making mortgages that fall outside the parameters of the qualified mortgage definition or are exiting the mortgage business entirely. Addressing two top regulators from the CFPB during the tail end of a session at the American Bankers Association’s government relations conference in Washington, DC, last week, one community banker from Oklahoma reported survey findings that one third of respondents in the state are no longer offering residential mortgages.

No purchase price on the sale of Allonhill assets to Stewart was ever disclosed. According to the bankruptcy filing, the sale price cannot be revealed for at least 12 months after the sale and will require approvals from both parties.

Whatever happened to the sale of Cole Taylor Mortgage, which has been in the works for nine months or so? Good question. When we asked one source close to the deal, his response was this: “Think of the Energizer Bunny but with fairly old batteries.

Although some jumbo market participants have called for a reduction to GSE loan limits, most of the mortgage industry – and members of Congress – prefer the current levels.

Inside FHFA Lending also found another interesting trend: The top 50 HECM lenders are dominated by nonbanks, some of which are relatively new to the space.

Lowering Fannie Mae and Freddie Mac loan limits is one of the easiest levers the federal government could pull to increase non-agency participation in the mortgage market but most market participants favor keeping them at their current levels. In December, the Federal Housing Finance Agency announced that it was considering reducing the loan “purchase limits” for the government-sponsored enterprises. Under the plan, the GSEs could not purchase loans exceeding ...

Old Republic Cancels Recapitalization Plan for its Mortgage Guaranty Subsidiaries. Old Republic International Corp. has withdrawn plans to secure capital market funding for its beleaguered consumer credit indemnity and mortgage guaranty subsidiaries for lack of investor interest. Both business segments are housed within the Republic Financial Indemnity Group and have been in a run-off mode since 2008 and 2011, respectively. ORI Chairman/CEO Al Zucaro said holding company funds would be used to shore up the regulatory capital of the mortgage guaranty subsidiaries. The completion of the recapitalization plan hinged on regulatory approvals in North Carolina, Florida and Vermont, as well as from the government-sponsored enterprises and the Federal Housing Finance Agency. ORI said that with all the complications, it could not be certain of getting the necessary approvals. A primary investor concern is that new capital would be used to pay for RMIC’s legacy problems, and investors want their money to ...

A mortgagee that no longer wishes to participate in FHA programs must submit a letter requesting voluntary withdrawal of its FHA approval, signed by a senior executive of the company, according to guidance published in the March 2014 issue of FHA’s Lender Insight. Lenders may not simply let their FHA approval expire by failing to complete FHA’s required annual recertification process, the guidance warned. “Failing to recertify will result in a referral to the Mortgagee Review Board for administrative action,” it said. The board’s withdrawal of a lender’s FHA approval could have an adverse impact on the lender should it reapply for FHA approval in the future. A lender requesting voluntary withdrawal of FHA approval is subject to a review before the agency signs off on the request. The request would be denied if the lender has an MRB administrative action pending against it or if it is behind on its mortgage insurance premium payments. A lender whose FHA approval has been withdrawn may ...

Approved lenders should review thoroughly all information before submitting their mortgage insurance certificates (MIC) to FHA because there have been too many mistakes over the past year, the agency warned. In the latest issue of Lender Insight, the FHA said lender requests to correct information on MICs have been more frequent than expected. Of the MIC corrections the FHA has reviewed, 81.5 percent stemmed from the agency’s Lender Insurance program. An MIC is a document issued by the Department of Housing and Urban Development as proof that FHA has insured a mortgage loan, and that a contract of mortgage insurance exists between the lender and HUD/FHA that incorporates agency regulations. A loan is considered as having no FHA insurance if it does not receive an MIC, regardless of how it is closed. The FHA made clear that it is the lender’s responsibility to ensure that information ...