Publicly traded REITs like Redwood Trust would fill the void if Fannie Mae and Freddie Mac lower loan limits next year. But they will be competing against portfolio lenders.

It appears the House of Representatives is giving up on GSE reform this year. However, the Senate could move forward, even though passage is considered a long shot, at best.

A compare ratio north of 150 percent will land a lender on HUD’s watch list. A ratio greater than 200 percent could result in disciplinary action and potential loss of FHA approval.

The Department of Veterans Affairs has announced it will accept electronic signatures in closing home loans with a VA guaranty. The VA said lenders are not required to use electronic signatures in VA loans but if they choose to, they must comply with the Federal Electronic Signatures in Global and National Commerce Act, or the E-Sign Act. The measure was signed into law in June 2000. The E-Sign Act establishes the baseline rules for Internet commerce, including nondiscrimination between handwritten and electronic signatures. The law also requires that electronic records be ...

Many of the lenders with high default rates are smaller companies while those with larger portfolios tend to perform better than the national average, according to Inside FHA Lending’s analysis of compare ratios on two-year FHA loan portfolios. The compare ratio is the percentage of a lender’s default and claim rate compared to the national average. It is shown as a numerical value, which HUD uses to determine lender performance. A compare ratio of over 150 percent will land a lender on HUD’s watch list and a ratio greater than 200 percent could result ... [1 chart]

The Department of Housing and Urban Development has charged Fifth Third Bank and a mortgage broker with discrimination for allegedly requiring medical proof from a couple with disabilities who were seeking FHA refinancing. Fifth Third Bank, Fifth Third Mortgage Co. and Cranbrook Mortgage Corp. were accused of violating the Fair Housing Act, which makes it illegal for creditors to deny or discriminate against borrowers based on disability, race, color, religion, national origin, gender or family status, including imposing different application or criteria on protected classes. The married couple, whose names HUD withheld, receive ...

A direct-endorsement (DE) lender in Arizona is on the hook for 789 FHA-insured loans with unallowable “gifts,” placing the Mutual Mortgage Insurance Fund at greater risk and causing the FHA to incur losses. Phoenix-based The Lending Company, Inc. (TLC) allegedly entered into agreements with two nonprofit groups, Family Housing Resources and Affordable Housing Partners, using gift programs that did not comply with FHA requirements, according to the Department of Housing and Urban Development’s Office of the Inspector General. The IG audit also found that TLC originated and underwrote FHA loans and did not ...

The Department of Housing and Urban Development has issued guidance establishing general procedures for mortgages and foreclosures on tribal lands. The Model Tribal Mortgage Lending Code is designed to meet the needs of mortgage loan guaranty, insurance and direct loan programs of the FHA, the Home Loan Guaranty program of the Department of Veterans Affairs, and the Rural Housing Program of the Department of Agriculture. Each of the federal agencies offers various mortgage-loan programs for Native Americans who wish to live on tribal trust lands or within a tribal area. The Housing and Community Development Act of 1992 created ...

The Department of Housing and Urban Development is phasing out the Saver and Standard loan products under the Home Equity Conversion Mortgage program in favor of a new reverse mortgage that limits the amount of money a borrower can draw at closing to 60 percent of the value of the home. The fixed and adjustable HECM Standard and Saver options will still be available until Sept. 29, said HUD. The revised principal limit, pricing and disbursement policies for the new HECM product will become effective on Sept. 30. The revised HECM guidance also ...

At the end of FY 2013, Congress will be looking at the results of two, separate actuarial audits of the FHA Mutual Mortgage Insurance Fund that may or may not agree with each other’s findings. Nonetheless, the FHA contends it needs a second actuarial opinion on the FY 2013 audit to ensure that the review of the financial condition of the MMI Fund is robust, thorough, consistent, accurate and transparent. “The FHA recognizes the value of having ‘fresh eyes’ on our insurance fund – new perspectives and different analytical models will give us a more ...