Imprecise rules, triple-damage claims and increasingly political enforcement of agency rules could make it more dangerous for lenders to do business with the FHA than to originate non-qualified mortgage loans, according to a top compliance expert. Larry Platt, a partner with K&L Gates, said that when lenders originate and underwrite FHA loans they are subjected to rules that are unevenly applied and politically enforced. It is a prescription for a financial bloodbath, especially if you add to it the False Claims Act and the Financial Institutions Reform, Recovery and Enforcement Act, he added. Throwing the Department of Justice into the mix ...
The Department of Housing and Urban Development has scheduled its next note sale on Dec. 17, following last month’s withdrawal of $450 million of nonperforming notes from the table after bids came up short of the reserve price. The Dec. 17 whole-loan sale will include Neighborhood Stabilization Outcome (NSOs) single-family loan pools, which will be offered, as in several previous HUD note sales, through a competitive bidding process. The offering consists of 5,000 defaulted purchase single-family mortgage loans totaling $1 billion in unpaid principal balances with representations and warranties. Currently, the FHA is selling loans in ...
The Department of Veterans Affairs has provided VA lenders a table for determining the appropriate and maximum cost of legal services for each preferred method for foreclosing in judicial and non-judicial states. Specifically, the table concerns the maximum attorney fees the VA will allow in calculating the payment of loan guaranty claims upon termination of the VA loan. It reflects the amounts the VA has determined to be reasonable and customary for all states, following an annual review of amounts allowed by other government-related home loan programs. Every year, the VA ...
Ginnie Mae home mortgage debt outstanding fell by a whisper in the third quarter of 2013 while FHA servicers reported a slight drop in overall delinquencies and an uptick in the foreclosure rate, according to Inside FHA Lending’s analysis of government-backed servicing data. As of Sept. 30, Ginnie Mae’s single-family servicing was down 0.2 percent from the previous quarter but was up 4.1 percent from the same period last year. Ginnie servicers ended the third quarter with $1.35 trillion in servicing outstanding. Although banks continued to dominate Ginnie servicing, the agency has been concerned with the ... [2 charts]
FY 2013 Actuarial Review of Insurance Fund Out in Mid-December. The Department of Housing and Urban Development expects to issue the long-anticipated FHA FY 2013 independent review of the state of the FHA’s Mutual Mortgage Insurance Fund during or before the middle of December. The report’s release was delayed due to the three-week government shutdown in October. The report will show FHA taking a mandatory appropriation of $1.7 billion to close out FY 2013. HUD has clarified that the draw is an accounting transfer required to close out the FHA’s FY 2013 books and not a reflection of ...
The sudden, dramatic increase in flood insurance premiums – some by as much as 1,000 percent – are leaving homeowners and prospective homebuyers stunned.
A rough measure of production profitability, the ratio of production income to origination volume, fell from 179 basis points in the second quarter to just 84 bps in the third. Back in the Wonderland of early 2012, this ratio was 203 bps.
Elsewhere, in the report FHFA claims significant progress has been made on the development and initial testing of the GSEs’ common securitization platform.
HUD has been steadily auctioning off nonperforming mortgages the past few months. Sources in the market disclosed to IMFnews who some of the winning bidders are. They include: Credit Suisse, Ellington, Kondaur, PIMCO and Varde.
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