Wells Fargo suffered a big legal setback after a federal judge denied its request to enforce a consent judgment under last year’s landmark $25 billion servicing settlement to prevent a New York lawsuit from proceeding. Judge Rosemary Collyer of the U.S. District Court for the District of Columbia rejected Wells Fargo’s argument that the new government suit filed in Manhattan district court was improper because it violated the consent judgment against Wells Fargo and flies in the face of the judgment’s “liability release” provision. Wells Fargo argued that the allegations in a civil mortgage fraud suit filed by ...
The delinquency rate of single-family mortgage loans fell to 7.09 percent of all loans outstanding on a seasonally adjusted basis at the end of the fourth quarter in 2012, the lowest level since 2008, according to the latest Mortgage Bankers Association’s national delinquency survey. The performance of FHA loans, on the other hand, was “mixed,” it said.Loan delinquencies decreased 31 basis points from the prior quarter, and were down 49 basis points from a year ago due to significant improvements in mortgage performance nationwide and in almost every state, the trade group said.“The 30-day delinquency rate dropped by ...
A modest decline in FHA endorsements of jumbo loans in the fourth quarter of 2012 could presage further declines this year, following the Department of Housing and Urban Development’s recent proposal to raise the downpayment requirement to 5 percent, from 3.5 percent, for loans above $625,500. The FHA already has raised its jumbo mortgage insurance premiums to 1.55 percent annually and increased the monthly premiums on new, non-jumbo FHA mortgages by 10 basis points. The agency retained the 3.5 percent downpayment for new forward mortgages below $625,500. The increased premiums are ... [2 charts]
Industry participants who track various FHA data, including Home Equity Conversion Mortgage loans and Neighborhood Watch compare ratios, may have noticed delays in their postings. For example, the latest available data for HECM originations was in September, the end of fiscal year 2012, and no updates have been posted since. David Stevens, president and chief executive officer of the Mortgage Bankers Association, also wondered why Neighborhood Watch was down. He suspected lack of funding. A Department of Housing and Urban Development spokesman explained that the FHA’s reporting timelines and procedures are undergoing ...
The Senate Banking, Housing and Urban Affairs will continue focusing on FHA solvency as part of its legislative agenda for the 113th Congress and has called a hearing next week to try to reach some bipartisan agreement on FHA reform. In a memorandum, Committee Chairman Tim Johnson, D-SD, said ensuring the health of the FHA Mutual Mortgage Insurance Fund is one of committee’s top priorities in sustaining and strengthening the nation’s economic recovery. Johnson said the committee will continue to conduct oversight on the condition of the FHA insurance fund and the role the FHA plays in the housing market as part of ...
NCOA Booklet Required Reading for HECM Borrowers. The National Council on Aging has announced the availability of the 2013 version of “Use Your Home to Stay at Home,”, the official reverse mortgage booklet approved by the Department of Housing and Urban Development. The booklet is designed to help older homeowners understands the pros and cons of a reverse mortgage. Federal law requires that all individuals who are considering a reverse mortgage go through pre-counseling by a HUD-approved counseling agency and receive a copy of the NCOA guide. The NCOA also offers other ...
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