Industry Groups Urge Congressional Leaders to Pass ‘Tax Extenders’ Legislation. Three industry groups called upon House and Senate leaders to pass “tax extenders” legislation, including two critical tax provisions that are scheduled to expire at the end of 2016. In a joint letter this week, the Mortgage Bankers Association, National Association of Realtors and the National Association of Home Builders called for the “rapid enactment” of a broad “tax extenders” package, including mortgage-debt forgiveness and tax deduction for mortgage insurance premiums. Passing a legislative package of tax extenders that includes the two provisions would provide much-needed certainty to the residential real estate markets, the letter said. Federal Agencies Propose Rule to Expand Access to Private Flood Insurance. Federal banking and credit union regulators and the Farm Credit Administration have published a ...

The FHA Mutual Mortgage Insurance Fund may be healthy enough to support a cut in forward-mortgage premiums, but officials at the Department of Housing and Urban Development aren’t yet willing to pull the trigger. HUD this week released its annual FHA audit showing strong improvement in the MMI Fund from the forward-mortgage side of the ledger. During a press briefing, Edward Golding, principal deputy assistant secretary for housing, said the strong audit results “do indicate there is room to return pricing to that which reflects the risks in the program.” He noted that the $245 billion in new FHA business in fiscal 2016 clearly added to the strength of the MMI Fund, “with indications we’re pricing above the risk of the program.” At the same time, Golding made...

The primary mortgage insurance market remained on track for its best year ever during the third quarter of 2016, as the government-insured sectors gained some ground on private MIs, according to a new Inside Mortgage Finance ranking and analysis. Mortgage lenders originated a record $220.46 billion of home loans with some form of primary MI during the third quarter, a 16.6 percent increase from the previous period. That brought year-to-date primary MI activity to $553.77 billion, just $92.40 billion less than the all-time annual record of $646.17 billion set in 2015. The government-insured market – mostly FHA and VA – was...[Includes three data tables]

The question of whether FHA should do another mortgage insurance premium reduction is pretty much on stakeholders’ minds as they anticipate the release of the annual actuarial review of the Mutual Mortgage Insurance Fund next week. Analysts, however, are not ready to change their opinion that further MIP cuts are unlikely. Some analysts said they would reconsider their views if the upcoming report showed strong growth in the MMI Fund, while others believe FHA’s priorities today are different than they were in early 2015, when the agency cut the annual premium for forward mortgages to 0.85 percent. The FHA’s decision to lower the annual MIP was spurred...

The FHA is decreasing the owner-occupancy rate for approved condominium developments that meet certain requirements, the agency announced recently. Currently, the FHA requires a minimum of 50 percent of the units be occupied by owners. The agency, however, said it would allow a 35 percent owner-occupancy rate if the project meets certain conditions that would make it more financially stable and less of a liability to the Mutual Mortgage Insurance Fund. While having too few owner-occupants could financially weaken a condo project, requiring too many could make...

Investors said that market is in the “sweet spot” when it comes to mortgage credit, while speaking at a symposium in Washington sponsored by the Urban Institute and CoreLogic this week. John Vibert, managing director and co-head of structured products for Prudential, said his company is much more interested in financing nonperforming loans than in owning such assets. “We think...

In the next few weeks, FHA will be releasing an actuarial report to Congress regarding the health of the Mutual Mortgage Insurance Fund that could boost or weaken the argument for another mortgage insurance premium cut. In anticipation of the report, stakeholders this year have reignited the debate, preceded by the Community Home Lenders Association’s call renewing for a reduction in FHA annual premiums down to their pre-crisis level of 0.55 percent. The CHLA said...

The Department of Veterans Affairs is proposing to establish fees for originating and servicing vendee loans. Vendee loans are not veterans’ benefits and are distinct from VA-guaranteed loans, the agency clarified in a proposed rule published in the Oct. 26 Federal Register. Vendee financing is...

With sea levels rising and flood risks increasing, federal housing regulators are proposing new base elevation standards for all properties with an FHA-insured mortgage located in flood hazard areas. Under the Department of Housing and Urban Development’s proposed rule, elevations for “non-critical” properties would be raised two feet above the site’s base flood elevation or 100-year floodplain. The proposed rule also would revise...

VA Announces Five-Digit Builder ID Number. VA Loan Guaranty (LGY) has announced that builder identification numbers are now five digits. Four-digit builder numbers will appear as 0 and four digits (01234). LGY does not approve builders. As such, builders need only register with LGY to obtain an ID number. All five digits must be...