It is unclear how much money is needed to recapitalize RMIC, which is currently in a run-off mode, but Old Republic plans to contribute up to $50 million and raise additional funds in the capital markets to resurrect its MI subsidiaries.

The Center for American Progress called on FHFA to keep g-fees at current levels “until there is reliable evidence” to suggest that the government needs more revenue to cover the cost of the guaranty.

It was the now-senior Democrat senator from Massachusetts, Elizabeth Warren, who faulted the Fed for enabling the financial crisis that prompted such an unconventional accommodative response in the first place.

One last thought on Berkowitz and Fairholme: To get Congress to listen to your ideas you have to donate money. Berkowitz can check that box off his to-do list. He has been a generous donor to Republicans and Democrats alike over the past two election cycles.

Servicing of subprime mortgages almost appears to be on autopilot as performance improves and the amount of mortgages outstanding dwindles. Servicers that once competed to handle subprime mortgages have focused their pursuits on other assets, including agency mortgages and other unspecified financial services sectors. An estimated $418.0 billion of subprime mortgages were outstanding as of the end of the third quarter of 2013, according to a ranking by Inside Nonconforming Markets ... [Includes one data chart]

A looser version of Home Affordable Modification Program loan modifications launched last year is increasing in popularity with non-agency servicers. HAMP Tier 2 allows mods with a broad range of debt-to-income ratios along with rental properties and even vacant homes. Some 11,338 permanent Tier 2 non-agency mods were initiated during the third quarter of 2013, according to the Special Inspector General for the Troubled Asset Relief Program, compared with 10,215 traditional non-agency HAMP mods ... [Includes one data chart]

The FHA is working to create a quality-assurance framework with enhanced reporting built around QA results as well as a refined approach to identifying underwriting defects, according to a top agency official. There is much uncertainty in the mortgage market today and one way to address that is to create a clear framework for lenders explaining FHA’s view of underwriting defects, how they are defined as well as their consequences, said Charles Coulter, deputy assistant secretary for housing with the Department of Housing and Urban Development. Speaking at the recent Mortgage Bankers Association annual convention, Coulter said the ...

Applying certain private mortgage insurance practices and requirements to FHA may not be as ideal as some proponents suggest because they do not fit in the business environment in which the FHA operates, according to a new study from the Government Accountability Office. Nonetheless, the regulatory framework for private mortgage insurers has features that could enhance the transparency of the FHA’s Mutual Mortgage Insurance Fund and Congress’ oversight of FHA’s operations, the study concluded. The GAO did the study at the request of ...

The Department of Housing and Urban Development has made long-awaited increases for claimable attorney fees and extended the foreclosure timeframes in many jurisdictions to help mortgage servicers perform better. The agency sets limits on the attorney fees servicers can claim on an FHA foreclosure and prescribes the length of time for doing due diligence. The last time HUD updated its guidance on fees and “reasonable diligence timeframe” for prosecuting a foreclosure on an FHA-insured loan was in 2005. However, changes in state foreclosure requirements in recent years have made it difficult for FHA servicers to ...

The Department of Housing and Urban Development has updated the timelines and methods servicers must follow for communicating with borrowers in default. Mortgagee Letter 2013-39 also addresses policies for engaging borrowers early in their delinquencies, specialized collection techniques for early-payment defaults or re-default, and FHA’s expectation for servicers to have written processes and procedures to follow for every stage of delinquency up to collection. Communicating early with borrowers who are late in their mortgage payments is essential in ensuring that delinquency is properly addressed, the agency said. HUD’s latest guidance provides a “collection-communication timeline,” which is a series of sequential steps a servicer can follow in dealing with a delinquent borrower. These steps would help the servicer assess a borrower’s circumstances, intentions and financial condition as well as determine an appropriate response.