Continued abuses has caused single-family loan originations to remain a top priority for reviews and targeted audits, according to the Department of Housing and Urban Development’s Office of the Inspector General. A specialized audit program has been developed to target lenders, considering a number of high-risk indicators, the OIG said. Although the agency did not elaborate, it did note Congress’ keen interest in FHA solvency and in eradicating policies and practices that contribute to the agency’s current financial woes. The OIG said it plans to ...
The VA home loan program was up 23.5 percent in the first six months of 2013, although activity slowed by 1.5 percent from the first quarter, according to Inside FHA Lending’s analysis of VA data. The VA reported $74.4 billion in purchase and refinanced loans during the first six months, with refis accounting for 52.9 percent of total volume. The program’s share of the overall mortgage insurance market fell to 22.2 percent in the second quarter from 24.3 percent in the previous quarter. Combining their year-to-date results, the FHA and VA reported a combined ... [1 chart]
HUD Seeks Comment on Proposed Multifamily Rule. The Department of Housing and Urban Development is seeking comment on proposed changes to regulations covering contract rights and obligations of FHA multifamily lenders. When a lender finances multifamily loans through bonds or bond anticipation notes, it uses the FHA insurance claim funds to pay off the remaining bond debts. At times, the claims payments are greater than the remaining bond debts. The proposed rule would require lenders to return to the FHA the excess bond funds that remain after ...
According to figures compiled by IMF, U.S. Bank Home saw its residential fundings slip to $18.62 billion in the second quarter compared to $22.46 billion in the first.
Specifically, Sen. Warren says she wants information on seller/servicers that were granted price breaks and the “basis” for “granting more favorable terms.”
Ocwen Financial expects to reach a settlement with state attorneys general regarding servicing practices “very soon,” according to Ronald Faris, the servicer’s president and CEO. State AGs have been working for more than a year to get other servicers to agree to terms similar to the $25 billion settlement reached with five large bank servicers in February 2012. A person with knowledge of the negotiations said terms with Ocwen have yet to be finalized or sent to the 50 state AGs, suggesting that it could be weeks before the settlement is completed. The source added that future settlements with servicers are likely to be reached on an individual basis, not bundled as they were with the settlement that involved Ally Financial, Bank of America, Citi, JPMorgan Chase and Wells Fargo. Ocwen’s Faris said...
Three months ago, CashCall President Paul Reddam said he was open to offers on his refinance shop, but that was before a jump in interest rates signaled a downturn in refi lending. At the midway point in 2013, CashCall ranked as 26th in mortgage originations, according to Inside Mortgage Finance, and refi loans accounted for virtually all of its business. These days Reddam isn’t returning telephone calls and competitors and investment bankers that specialize in mortgage acquisitions say that of late, they’ve heard little about CashCall’s situation. “I’m getting resumes from some of their employees,” said one mortgage CEO who is based in the same Southern California market as CashCall. “We’re seeing a lot of resumes from refi shops.” This executive, who focuses on purchase lending and spoke on the condition his name not be used, said...
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