The FY 2015 proposed budget is estimating a positive capital reserve of $7.8 billion for the FHA Mutual Mortgage Insurance Fund by the end of fiscal year 2014, meaning the fund will not require a mandatory appropriation from the Department of the Treasury this year, according to federal housing regulators. Last year, the president’s budget projected a $943 million Treasury subsidy to the FHA in order to meet statutory budgetary requirements but ended up requesting $1.7 billion by the end of fiscal year on Sept. 30. The latest independent actuarial audit found that the MMIF’s net worth has improved $15 billion from the previous year’s estimates, growing from negative $16.3 billion to negative $1.3 billion. In addition, the fund’s capital reserve ratio improved from negative 1.44 percent to negative 0.11 percent. The MMIF is now expected to ...
Ginnie Mae will begin scrutinizing issuers which, for reasons unknown, have not issued a single Ginnie Mae mortgage-backed security since obtaining their approval. Ginnie Mae President Ted Tozer said he is assigning staff to investigate the underlying cause of issuer inactivity. “We’re starting that process now to find out what their plans and objectives are to try to get a better handle on what’s going on,” he explained. With the growth in new issuers, agency staff has focused on making sure that newcomers are transitioning smoothly and are up to speed on what is happening in the mortgage securities market. But there are those that have remained inexplicably dormant. Tozer admits that agency staff is spread quite thin and the agency has been hiring more account executives lately to monitor all program participants to ensure there are not more early failures. New issuers typically go through a ...
Penalties in legislation that would restrict the use of eminent domain to resolve foreclosure problems could cripple state and local governments financially and provide no relief to property owners, warned the bill’s critics. H.R. 1944, the Private Rights Protection Act, would prohibit city and county governments that get federal funding for economic development from using their eminent domain powers to seize underwater mortgage notes from investors and unilaterally restructure the loans before selling them to other investors. Violators would be ineligible for federal economic development funds for two fiscal years following a court’s finding of guilt. The bill also provides the attorney general with broader enforcement authority. The necessity for legislation arose in the wake of efforts last year by certain municipalities in California to ...
The Department of Housing and Urban Development has completed modifications to its Home Equity Reverse Mortgage Information Technology (HERMIT) system to accommodate new premium structures and initial disbursement limits that were implemented last September. Launched in October 2012, HERMIT is HUD’s online-web-based automated system for monitoring and tracking its Home Equity Conversion Mortgage portfolio, collecting mortgage insurance premiums (MIP) and paying insurance claims. Lenders also access HERMIT to notify HUD of a borrower’s death and the initiation of foreclosure. While HUD had already modified FHA Connection and released an updated version of the HECM calculation software to accommodate the latest modifications, changes to the HERMIT system were delayed until now. HUD instructs FHA lenders to follow the mapping instructions for borrowers’ mandatory obligations in HERMIT to ...
Last week, Lawsky noted that Nationstar’s portfolio more than doubled between the end of 2012 and the end of 2013. He asked the nonbank servicer to provide the number of full timers in each unit as well as the number of loans per employee.
It may be temporary, but residential mortgage debt outstanding fell in the fourth quarter. For buyers of servicers that means less product is available (in theory).
The more detailed 'needs-to-improve' list includes Bank of America, CitiMortgage, Nationstar Mortgage, Ocwen Loan Servicing, Select Portfolio Servicing and Wells Fargo.
By itself, BofA accounted for 79.3 percent of the $606.3 billion shrinkage in commercial bank MSR portfolios during 2013. Where did all that servicing go to?
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