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...

The call for housing-finance reform and a legislative solution to Fannie Mae and Freddie Mac continues to grow among policymakers, but as the clock runs down some industry observers say it is already too late for effective action this year. Senate Banking Housing and Urban Affairs Committee Chairman Tim Johnson, D-SD, and Ranking Member Mike Crapo, R-ID, reportedly remain close to unveiling a housing finance reform bill.

House Republicans had planned on voting on a package of CFPB-related legislation last week, but were forced to regroup after deliberations related to the federal government’s debt limit took center stage. An aide to Republicans on the House Financial Services Committee told Inside the CFPB that the GOP leadership plans to push another vote by the end of the month. It looks like the dominant legislative vehicle will be H.R. 3193, the Consumer Financial Freedom and Washington Accountability Act, legislation which reflects the texts of several...

Federal Reserve Chair Janet Yellen stuck close to the script of her predecessor on the subject of the Fed’s “quantitative easing” exit strategy during her first Humphrey-Hawkins appearance before Congress this week, reaffirming that the central bank’s pull-back from its asset-purchase program is likely to continue, barring a dramatic surprise. “Let me emphasize that I expect a great deal of continuity in the Fed Open Market Committee’s approach to monetary policy,” Yellen told the House Financial Services Committee on Tuesday. “I served on the committee as we formulated our current policy strategy and I strongly support that strategy, which is designed to fulfill the Federal Reserve’s statutory mandate of maximum employment and price stability.” The new Fed chief reminded...

FHA-approved lenders should make sure they leave no stones unturned to ensure that loans submitted for endorsement meet FHA’s strict underwriting criteria. It is the responsibility of direct endorsement lenders to scrutinize every loan for compliance with FHA lending guidelines, including income verification, credit analysis and property appraisals. JPMorgan Chase admitted it failed to do all of the above. Last week, the bank acknowledged it violated the False Claims Act and agreed to pay $614 million in cash to settle government charges it improperly certified poorly underwritten loans for FHA and VA guarantees. The defective loans later ...

The whistleblower whose investigative efforts led to the landmark $25 billion national mortgage settlement between the federal government, 49 state attorneys general and five of the largest mortgage servicers is at it again. This time, Lynn Szymoniak is suing 22 companies for using fraud to obtain FHA insurance – in some instances, VA guaranties – for defective loans that later were securitized through Ginnie Mae and sold to investors. Szymoniak, who is suing under the False Claims Act, gained notoriety from a 2011 interview on “60 Minutes” in which she ...

The idea of expanding the Home Affordable Refinance Program may never die, but comments this week show the Obama administration has little interest in reviving it. During a question-and-answer event this week sponsored by Politico, Department of Housing and Urban Development Secretary Shaun Donovan made it clear that HUD will not push for an expansion of HARP. While more could be done for non-agency borrowers, he said that would require legislation. “I think we should continue to look at everything we are doing in marketing it … but I think this is something we ought to continue to look at on the legislative front,” said Donovan. An industry lobbyist said...

Despite new public pronouncements by lawmakers and administration officials that housing finance reform remains a “top priority,” industry observers warn there is little chance of legislation clearing Congress, ensuring a status quo that leaves the uber-profitable Fannie Mae and Freddie Mac in place and pumping money into the Treasury. Senate Banking, Housing and Urban Affairs Committee Chairman Tim Johnson, D-SD, and Ranking Member Mike Crapo, R-ID, broke a long public silence by reiterating their intention to push bipartisan housing finance reform in a statement on Wednesday.

President Obama’s scant mention of housing finance reform or mortgage policy during this week’s State of the Union address was not entirely a surprise, say industry observers, but an administration official’s remarks last week on the Home Affordable Refinance Program’s outlook were more encouraging. Obama spoke of housing exactly twice during his prime time speech: first to describe the housing market as “rebounding” and again to demand from Congress “legislation that protects the taxpayers from footing the bill for a housing crisis ever again.” Fannie Mae or Freddie Mac were mentioned...

The Department of Housing and Urban Development will accept electronic signatures on FHA loan documents provided the lender complies with the department’s latest e-sign guidelines. E-signatures are voluntary under current HUD rules. Effective immediately, however, HUD will accept such signatures on FHA paperwork relating to mortgage insurance, servicing and loss mitigation, FHA insurance claims, HUD real estate-owned sales contracts and related addenda as long as they meet the new requirements. The new policy applies to all FHA forward mortgages and Home Equity Conversion Mortgage loans. HUD will treat eligible e-signatures as ...