The FHA will implement its new Loan Review System that features a defect taxonomy on May 15, 2017. The new system is designed to reduce potential lender liability when FHA loans go into default. The LRS will be used to manage FHA single-family loan and monitoring reviews as well as lender self-reporting of fraud, misrepresentation and other material findings. A change in the pre-endorsement loan review period from pre-closing to post-closing will also become effective on May 15. Scrutinizing loans after they close prior to endorsement for FHA insurance would ensure that loans have no material defects or material errors that could expose the lender to enforcement action or false-claim litigation and the likelihood of a hefty settlement. The defect taxonomy will help lenders identify and classify loan-level defects uncovered through individual loan reviews. Material loan defects have been narrowed down to ...

Correction: There was an error in the total number reported for Home Equity Conversion Mortgage originations in 2015 in the March 17, 2017, issue of Inside FHA/VA Lending. The correct total is $16.0 billion. HUD Secretary Ben Carson Visits Dallas/Ft. Worth. Housing and Urban Development Secretary Ben Carson continued his national listening tour this week in Dallas/Ft. Worth to learn more about HUD’s public housing programs. Carson embarked on a national listening tour March 15 at a Detroit high school bearing his name President Trump recently released his proposed preliminary FY 2018 budget, which showed among other things a drastic $6.2 billion reduction in funding for public housing assistance and affordable housing. Carson said the discretionary budget plan promotes fiscal responsibility at HUD by “promoting better efficiencies and ...

Despite the huge losses posted by PHH, James Egan, chairman of the board, said Messina “has led PHH with vision, decisiveness and integrity through one of the most turbulent periods in the mortgage industry in decades...”

Stop the presses: a consensus on GSE reform is here! Really?

As one mortgage CEO noted: “We’d be knocking it out of the park already if there were more [home] sellers."

The Trump administration appears to be in no rush to fill key posts at HUD, Ginnie Mae and FHA...

Former CFPB attorney Richard Horn believes the executive order applies to the CFPB because it refers to agencies under the Administrative Procedures Act…

At one point, Ocwen's management said various monitors were costing the company upwards of $80 million a year...

However, this group of nonbank lender/servicers is hardly homogenous…

Depending on its buying spree, Freedom could easily leap-frog into the number four originator spot, bypassing PennyMac Financial, Bank of America, and U.S. Bank.