Legislation seeking a recalculation of the Department of Housing and Urban Development’s loan limits for 2014 was introduced this week in the House of Representatives. Authored by Rep. Gary Miller, R-CA, H.R. 4208 (The Stabilizing FHA Loan Limit Calculation Act of 2014), would address credit availability problems caused by the statutory change in the way FHA loan limits are calculated and by revised median housing prices. More than 650 counties throughout the country saw their median house prices drop, some by as much as 20 percent to 50 percent, because of the 2014 calculation. Approximately 93 percent of California’s housing market or 54 counties have experienced severe declines in their FHA loan limits in 2014. For example, in Miller’s Riverside-San-Bernardino-Ontario district, the median price for a one-unit property fell from $500,000 in 2013 to $355,350 in 2014 – a 30 percent difference. In 2013, an estimated 8,000 home sales with ...

The Democrat and Republican heads of the Senate Banking, Housing and Urban Affairs Committee this week finally announced an agreement on comprehensive housing finance reform legislation but the release of a detailed bill for public consumption remains forthcoming. For now, it’s impossible to tell how the agreement reached by Committee Chairman Tim Johnson, D-SD, and Ranking Member Mike Crapo, R-ID, is any different than the bipartisan bill introduced early last year by Sens. Bob Corker, R-TN, and Mark Warner, D-VA. Johnson and Crapo are expected to release draft legislative language later this week, and move to a markup “in the coming weeks.” Like Corker-Warner, the Johnson-Crapo agreement includes...

Legislation that would block implementation of premium rate increases in the Biggert-Waters Flood Insurance Reform Act passed the House of Representatives this week by a bipartisan 306 to 91 vote. The passage of H.R. 3370, the Homeowner Flood Insurance Affordability Act of 2013, paves the way for both the House and the Senate to iron out the differences between their bills in conference. The Senate passed its version on Jan. 30. H.R. 3370 would reduce...

Slowing refinance activity and higher mortgage insurance premiums took a toll on FHA loan production in the fourth quarter of 2013, according to Inside FHA Lending's analysis of FHA data. Overall FHA endorsements fell 24.3 percent from the third quarter as the year ended with $210.0 billion. This was down 9.6 percent from total FHA loans originated in 2012. The year-s top five FHA lenders -- Wells Fargo, Quicken Loans, JPMorgan Chase, Freedom Mortgage and Bank of America -- combined for21.9 percent, or $46.0 billion, of total originations, down ... [includes one chart]

The FHA's model mortgage form clearly makes the federally required flood-insurance amount the minimum, not the maximum, the borrower must have, according to a recent federal appeals court ruling. In Faire Feaz v. Wells Fargo Bank, et al. No. 13-10230, the U.S. Court of Appeals for the 11th Circuit determined that the language in the FHA's model form requiring borrowers to purchase the FHA's minimum required amount of flood insurance does not prevent lenders from demanding more insurance than the agency requires. With its ruling, the court upheld the dismissal of the claim for breach of contract, related claims for breach of the duty of good faith and fair dealing, and breach of fiduciary duty. The 11th Circuit ruling also agreed with the First Circuit's recent en banc ruling in Kolbe v. BAC Home Loans Servicing LP, F.3d -- 2013 WL 5394192 (1st Cir. Sept. 27, 2013). Noting a split among the district courts, the First Circuit recognized that ...

Several industry trade associations have asked the FHA to confirm whether the 203(k) property rehabilitation program can be used to mitigate future flood threats, particularly for undamaged homes in flood zones. Because of their properties' location in a designated floodplain, homeowners could be hit by rising flood insurance rates. The Mortgage Bankers Association, National Association of Realtors, National Association of Home Builders, National Association of Local Housing Finance Agencies and the Association of State Floodplain Managers said they believe the federal 203(k) program can be used to reduce or minimize the effect of future floodings on undamaged floodplain properties. Flood insurance rates can be reduced significantly by raising a home to a level at or above the 100-year flood elevation, or by ...

Genworth Mortgage Insurance is helping customers understand the benefits of the new master policy private mortgage insurers have helped develop with Fannie Mae and Freddie Mac to improve the MIs' operating and servicing processes. Genworth expects the new master policy to take effect in July. Customers will receive a copy of the document as well as information explaining its benefits and operation before the effective date. A "Master Policy Introduction Reference Notes" and other resources may be found at Genworth's website, including a downloadable sample of the master policy, sample endorsements, a summary of changes and frequently asked questions. In December 2013, the Federal Housing Finance Agency announced the government-sponsored enterprises' completion of the first major overhaul of the MI master policy requirements in many years. As part of their conservatorship, Fannie and Freddie were required to ...

The House of Representatives this week is expected to vote on the amended version of H.R. 3370, the Homeowner Flood Insurance Affordability Act, which would provide comprehensive reform and longer-term relief from skyrocketing premiums in the National Flood Insurance Program. But there is a possibility that the vote could take place next week as Republicans and Democrats continued to negotiate on proposed changes and further protection for homeowners who face hefty rate increases caused by the Biggert-Waters Flood Insurance Reform Act of 2012, sources said. Congress passed the act to address the NFIP's solvency problems. Authored by Reps. Michael Grimm, R-NY, and Bill Cassidy, R-LA, H.R. 3370 builds...

Fed: G-Fee Hikes Would Have Minimal Impact on Agency Originations. Increases to guaranty fees under consideration by the Federal Housing Finance Agency would directly reduce the dollar volume of new agency originations by less than 1.0 percent, according to new research published by the Federal Reserve. In December, then-FHFA Acting Director Edward DeMarco announced a plan to increase the base g-fee for all new Fannie Mae and Freddie Mac mortgages by 10 basis points, update the up-front g-fee grid and eliminate the upfront 25 basis point adverse market fee that has been assessed on all mortgages purchased by Fannie and Freddie since 2008.

Private mortgage insurers provided primary coverage on $41.59 billion of mortgages originated during the fourth quarter of 2013, according to a new Inside Mortgage Finance ranking and analysis. While that was down 29.6 percent from the third quarter, it also represented the deepest private MI penetration of new originations in five years. Private MI coverage – including existing insurance transferred to new loans originated under the Home Affordable Refinance Program – accounted for 13.6 percent of new mortgages produced in the fourth quarter. That was the highest private MI share of new originations since the first quarter of 2008, when it was 14.7 percent. HARP continued...[Includes three data charts]