Community-based mortgage lenders have asked the Obama administration to include a provision in the FY 2015 budget lowering FHA annual premiums to allow the agency to fully meet its mission of providing affordable mortgage credit while shoring up the FHA Mutual Mortgage Insurance Fund. In a recent letter to the Office of Management and the Budget, the Community Home Lenders Association called for a reduction in the annual FHA premium on purchase loans from the current 1.35 percent to 0.75 percent. The CHLA further recommended a 0.5 percent reduction of the annual premium for all borrowers when the FHA reaches its 2.0 percent net worth standard. At the same time, the CHLA also recommended lowering down to 0.5 percent the premium paid by homeowners who have completed HUD-sanctioned pre-purchase homeownership counseling. The group also called for an increase in the upfront FHA premium to as high as ...
Ginnie Mae has expressed concern about a new FHA policy accepting electronic signatures on most mortgage documents and will seek input and feedback from issuers. In a memo to participants this week, the agency said electronic documents "present unique challenges to implementation." In a Jan. 30 mortgagee letter, the FHA announced that it would begin accepting electronic signatures on most loan docs, including loan disclosures and loan servicing/loss mitigation documents. The FHA said it will accept electronic signatures only on "authorized" docs but delayed their use on notes until Dec. 31, 2014. This delay reflects considerations that are necessary in connection with electronic notes (eNote) and electronic mortgages (eMortgages), said Ginnie Mae. An electronic signature is a signature that is applied or affixed to a document by electronic means. Scanned images of paper docs that bear a physical or "wet" signature are not ...
The Civil Division of the U.S. Attorney's Office for the Eastern District of New York is investigating Bank of America's compliance with the requirements of the FHA's Lender Direct Endorsement program. BofA disclosed the investigation in its recent filing with the Securities and Exchange Commission but withheld details. Department of Justice investigations of FHA-related fraud are based typically upon an alleged violation of the Financial Institutions Reform, Recovery, and Enforcement Act of 1989 (FIRREA) and/or the False Claims Act (FCA). Civil monetary penalties under FIRREA could go as high as $1.1 million per violation while treble damages are potentially available for FCA claims. Both laws have a 10-year statute of limitation. As a direct endorsement lender, BofA is authorized to originate, underwrite and certify loans for mortgage insurance without further reviews by the FHA or the Department of Housing and Urban Development. If the loan defaults, the holder of the loan may ...
Slowing refinance activity and higher mortgage insurance premiums took a toll on FHA loan production in the fourth quarter of 2013, according to Inside FHA Lending's analysis of FHA data. Overall FHA endorsements fell 24.3 percent from the third quarter as the year ended with $210.0 billion. This was down 9.6 percent from total FHA loans originated in 2012. The year-s top five FHA lenders -- Wells Fargo, Quicken Loans, JPMorgan Chase, Freedom Mortgage and Bank of America -- combined for21.9 percent, or $46.0 billion, of total originations, down ... [includes one chart]
An increase in the purchase-mortgage share in new jumbo mortgage-backed securities will benefit investors in the deals, according to Moody's Investors Service. However, the loans are more difficult for lenders to originate than refinance mortgages, and it remains to be seen if investor demand will be high enough to prompt issuance of jumbo MBS. The share of refis in jumbo MBS declined as interest rates rose in 2013. Moody's said the trend is expected to continue this year and noted that ...
What does the seller of the MSRs think about what's going on with the DFS? A spokesman for the nation's largest lender and servicer told IMFnews: "Wells Fargo has not been a party to any discussions with the New York Department of Financial Services regarding Ocwen."
Some mortgage brokers see the switch to a mini-correspondent as their only way to stay in business due to provisions in rules from the Consumer Financial Protection Bureau.
The ATR survey was sent to 53 mortgage-originating entities, mostly mortgage bankers with some independent mortgage brokers and other originators. No credit unions or savings and loans responded.
The retail share of new residential originations declined slightly, to 60 percent, in the fourth quarter after climbing steadily during the first nine months of the year.
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