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 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 ...
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]
VA Loan Guaranty: New Percentage to Determine Net Value of Collateral. The Department of Veterans Affairs has revised the percentage lenders and mortgage holders in the VA loan guaranty program use in calculating the purchase price of a property that secured a terminated loan. Effective Oct. 8, 2013, the new percentage is 14.95 percent, up from 11.87 percent, which has been in place for the past 12 years. North Carolina Amends Anti-Predatory Lending Law. The Tar Heel State enacted HB 692 on Aug. 23 to strengthen current consumer protections against ...
Look for an update late Thursday on the sale of Cole Taylor Mortgage. Meanwhile, does anyone care that credit unions are holding 30-year jumbo mortgages in portfolio?
With mortgage rates at their highest level in more than two years, the long-awaited boom in mergers and acquisitions may finally be here. But don’t expect sellers to accept just any price. “M&A is picking up,” said Larry Charbonneau, who runs a boutique advisory firm, Charbonneau & Associates. “The big fish want to buy the small ones, but the small ones don’t know if it’s in their best interest to sell yet.” Charbonneau points out...
Radian Guaranty has struck a deal with Freddie Mac on a pool of delinquent and reperforming mortgages, capping the private mortgage insurer’s exposure at $840 million and reducing the total number of delinquent loans by 12.6 percent. Announced on Aug. 29, the agreement covers a group of 25,760 first-lien loans insured by Radian and held by the government-sponsored enterprise that were delinquent as of Dec. 31, 2011. The agreement provides for the future treatment of these loans, including claim payments, loss mitigation and termination of insurance coverage. At the same time, Radian’s claim exposure on 9,756 delinquent loans and 4,586 loans that were...
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