The Federal Emergency Management Agency this week updated Senate lawmakers on efforts to produce more accurate flood maps and flood-risk models. A key change will shift flood-risk analysis and insurance pricing from the so-called 1 percent annual chance of flooding to the actual flood risk to the structure itself. Testifying before the Senate Committee on Banking, Housing and Urban Affairs, FEMA Administrator Roy Wright said adopting the structure-based methodology would require an entirely new approach in flood insurance rating and underwriting, including new regulatory hazard and risk products. Other witnesses at the hearing expressed support for the recommendation, saying it would remove the uncertainty caused by constantly changing flood lines in FEMA maps. The hearing is...

While Fannie Mae has mopped up virtually all of the buyback disputes on loans more than a few years old, Freddie Mac still has a stubborn supply of legacy repurchase demands on its hands. A new Inside The GSEs analysis of repurchase activity disclosures for the second quarter of 2016 reveals that 39.6 percent of Freddie’s pending and disputed buyback claims involved loans that were securitized prior to 2008. At Fannie, such loans accounted for just 0.7 percent of unresolved buyback demands as of the end of June. Freddie did make progress during the second quarter, however. In fact, 34.8 percent of the seller repurchases or indemnifications made during the...

FHFA’s TCPA Exemption Request Denied. The Federal Communications Commission turned down the Federal Housing Finance Agency’s request to exempt GSE mortgage servicing calls from prohibitions against robocalls, or automated dialing and calling systems, to contact delinquent borrowers. It refused the request, citing the exemption for Fannie Mae and Freddie Mac loans “because little in the way of facts has been entered into the record.” According to the commission, the FHFA, in its request, cites two different exemption provisions. However, the FCC said the FHFA failed to provide the information necessary for determining whether the calls at issue would satisfy the threshold requirements for exemption. Under the rule, calls to cell phones are capped at no more than three attempts...

Major industry trade groups are asking FHA and VA to suspend proposed guidelines for energy-improvement loans and give stakeholders an opportunity to comment. In a joint letter, 11 trade groups warned that the proposed agency guidelines regarding Property Assessed Clean Energy (PACE) loans raises serious concerns that must be resolved before implementation of any PACE guidance. Prior to the issuance of the new guidelines, both FHA and VA prohibited the financing or refinancing if there was a lien other than the FHA-insured or VA-guaranteed mortgages. PACE programs are available in 19 states but most are in California. They provide financing for home improvements and clean-energy upgrades that would result in more efficient use of water and electricity, and ultimately savings for homeowners. The PACE obligation is repaid through a property-tax assessment, which takes a ...

The Federal Communications Commission has refused an industry request to exempt mortgage servicing calls from prohibitions against the use of “robocalls,” or automated dialing and calling systems, to contact delinquent borrowers on their cell phones. In a long-awaited final rule limiting the way servicers can collect on student loans, mortgages and other debts owed to the federal government, the FCC said it would not make a decision on whether the statutory exemption from the Telephone Consumer Protection Act’s “prior express consent” requirements applies to Fannie Mae and Freddie Mac loans or their servicers. The TCPA and FCC regulations require...

The Federal Housing Finance Agency extended the response deadline on its “request for input” on the credit risk-transfer program. The response period will now close on Oct. 13, 2016, instead of Aug. 29.The FHFA extended it by 45 days because various industry stakeholders said they wanted more time to evaluate the information and questions raised in the RFI. Back in June, the FHFA asked for industry feedback on various aspects of its CRT program. Fannie Mae’s Connecticut Avenue Securities program and Freddie Mac’s Structured Agency Credit Risk program have accounted for the bulk of GSE risk-transfer activity since the program was launched three years ago.

The Democratic Party released its 2016 platform and its priorities range from expanding foreclosure prevention programs to increasing access to affordable housing and preserving the 30-year fixed-rate mortgage. Dave Stevens, president and CEO of the Mortgage Bankers Association, said that when it comes to housing, the Democratic and Republican platforms are starkly different. “The Republican platform is almost solely about removing burdens on financial institutions and others who build homes, and the Democratic platform deals with both the demand and supply side in their policies,” he said during one of several real estate panels held at the Democratic National Convention in Philadelphia Democrats specifically mentioned...

Senate legislation that would make it easier to obtain FHA financing for condominium projects has been sent to the president for signature, though lenders seem to be more eager for long-anticipated condo reform guidelines from the Department of Housing and Urban Development. Senate lawmakers unanimously approved H.R. 3700, the “Housing Opportunity through Modernization Act,” before Congress retired for the August recess. The bill passed in the House of Representatives by a vote of 427-0 back in February. Industry observers said the bill would essentially codify FHA condo-financing guidelines, which HUD recently drafted and are currently undergoing clearance at the Office of Management and Budget. Under H.R. 3700, the FHA would be required to establish and implement a recertification process that is substantially less burdensome than the ...

USMI Names MGIC Chief as Chairman. U.S. Mortgage Insurance has tapped Patrick Sinks, chief executive of MGIC Investment Corp., to be the trade group’s new chairman. Sinks succeeds USMI Chairman Rohit Gupta, president and CEO of Genworth Mortgage Insurance. Sinks served previously as USMI’s vice chairman. Bradley Shuster, chairman/chief executive for NMI Holdings, will take overNew Reverse-Mortgage Product. California Mortgage Advisors has expanded its reverse-mortgage menu, with the addition of a non-FHA reverse mortgage option of up to $6 million for select clients. With the new product, CMA joins a handful of private reverse-mortgage lenders that will consider properties valued up to $6 million. Last year, American Advisors Group, the largest Home Equity Conversion Mortgage lender, announced its AAG Advantage lending program, which features the ...

GOP Legislation Would Exempt Small Nonbank Lenders from CFPB Examination, Enforcement. Rep. Roger Williams, R-TX, recently introduced H.R. 5907, the Community Mortgage Lenders Regulatory Act of 2016, which would exempt qualifying smaller, “responsible” nonbank lenders from CFPB examinations and primary enforcement authority. To qualify, a nonbank mortgage lender must have net worth of less than $50 million; have originated fewer than 25,000 loans or $5 billion in loans the preceding year; and have originated at least 95 percent of their mortgage loans as qualified mortgages the last three years. As currently applies to most banks, a qualifying “responsible community lender” would not be subject...