The FHA has proposed key changes to rules for 203(k) consultants, direct endorsement (DE) underwriters and nonprofit groups that do business with the agency. The changes are part of a draft section, “Doing Business with FHA – Other Participants,” which will be incorporated into the overall Single Family Policy handbook. The draft contains information regarding eligibility, approval and recertification requirements for 203(k) program consultants, direct endorsement (DE) underwriters and nonprofit groups. The FHA posted the draft versions of “Doing Business with FHA – Other Participants in FHA Transactions” and “Quality Control, Oversight and Compliance – Other Participants in FHA Transactions” on its SF Housing Policy Drafting Table for public review and comment. The draft consolidate various existing Department of Housing and Urban Development handbooks, mortgagee letters, housing notices and ...

The Department of Housing and Urban Development has made further clarifications to policy guidance related to the treatment of eligible and ineligible non-borrowing spouses of deceased Home Equity Conversion Mortgage borrowers. According to Mortgagee Letter 2015-02, FHA lenders must identify at application any current non-borrowing spouses and must determine whether they are eligible for protection against “due and payable” requirements that kick in upon the death of the HECM borrower. This protection is a provision in the HECM document requiring that full payment of the entire mortgage be deferred for as long as a non-borrowing spouse continues to meet all the requirements of the provision. Specifically, the eligible, non-borrowing spouse must establish, within 90 days from the death of the HECM borrower, legal ownership or other ongoing legal right to ...

Ginnie Mae will soon introduce the third prong of a strategy to improve its oversight of participants in its mortgage-backed securities program – a performance scorecard for issuers – and monitoring of its risk. Essentially a “scorecard,” the Issuer Operational Performance Profile (IOPP) will enable issuers to better understand and comply with Ginnie Mae’s expectations. It also provides a way for issuers to measure and improve their performance and compare it to the performance of their peers. Final testing and training for IOPP began this winter, with deployment expected “in early 2015,” the agency said. Issuers will be scored monthly based on a series of metrics. Each issuer will be rated against its peers by applying a weighting algorithm and, in some cases, adjusting for certain control factors. Each issuer will receive two scores: one for operational management and ...

As part of the settlement, the DBO will drop its effort to suspend Ocwen’s license in the state.

Sources familiar with the situation said Carroll began spreading the word about his departure last week.

Other investment bankers who work the MSR market said declining interest rates and the “Ocwen” effect are hurting values.

The Consumer Financial Protection Bureau this week countered mortgage-industry criticism about its recently launched interest-rate checker tool. “The rate checker is an educational tool and is not a substitute for shopping,” a spokesman for the bureau told Inside Mortgage Finance. “One of the findings of our survey was that consumers who said they were very familiar with available interest rates were almost twice as likely to shop, compared to those who were unfamiliar.” Further, before consumers make a final decision about a loan, they should compare...

Investment banking firms that arrange subordinated debt offerings for mortgage originators are expecting a strong year in 2015, thanks in part to the dismal outlook for initial public offerings. “Sub debt is a good way to grow your business without it being dilutive to your company,” said Bill Dallas, CEO and founder of Skyline Lending, a lender that recently completed a $20 million deal with Ellington Financial, a publicly traded mortgage real estate investment trust. “It allows...

Thomas Gamache, national director of retail sales for Guaranteed Rate, has left the company and accepted a position with Citizens Financial Group...

Roughly 5 percent of Citadel's production is retail with correspondent accounting for 7 percent. The balance entails table funding.