Fannie Mae has begun purchasing rural housing loans with a Department of Agriculture/Rural Development guarantee. The government-sponsored enterprise accepted delivery of Section 502 (RD-502) loans from USDA-approved lenders on Nov. 3 – an open challenge to Ginnie Mae, which has dominated the market. The loans were delivered as standard products with no variance required. Other government-backed loans such as FHA and VA continue to require a negotiated variance. The Section 502 single-family guaranteed housing loan program provides financing to low- to moderate-income rural homebuyers. A community is eligible for 30-year fixed-rate RD-502 loans if it is located in an area that meets the USDA’s definition of “rural.” The Farm Bill, signed into law in February of this year, defines “rural” as any area outside of city limits with a ...
Essent EVP to Retire in March. Adolfo Marzol, Essent Guaranty’s executive vice president, will step down, effective March 31, 2015, after five years with the company. VA Hybrid Adjustable-Rate Mortgage Pooling Eligibility. The Department of Veterans Affairs recently expanded the type of loans it will guarantee to include 7/1 and 10/1 hybrid ARMs. While Ginnie Mae’s Mortgage-Backed Securities Guide does not bar the inclusion of hybrid ARMs in Ginnie MBS, GinnieNET is not currently able to process these loans for pool processing. GinnieNET is being updated in order to accommodate VA 7/1 and 10/1 hybrid ARM pooling. Effective with issuances dated on or after Dec. 1, 2014, VA 7/1 and 10/1 hybrid ARMs will be eligible for pooling. CFPB Publishes Revised List of Rural and Underserved Counties. The Consumer Financial Protection Bureau has published its 2015 list of ...
For the first nine months of 2014, the group reported $10.94 billion in net mortgage-banking income, a stunning 43 percent decline from the same period in 2013
As part of its RMBS 3.0 initiative, the Structured Finance Industry Group this week released the second installment of its recommended best practices for the non-agency MBS market. New and revised material was released for each of the three major “work streams” in the project, which broadly cover: representation-and-warranty issues and repurchases; due diligence, data and disclosure; and the roles of transaction parties and bondholder communications. The 54 new pages released this week bring the cumulative work to about 125 pages, including appendices. In the reps-and-warranties section, new provisions cover...
The National Credit Union Administration this week sued Deutsche Bank National Trust Co., alleging the bank violated federal and state laws by failing to carry out its duties as trustee for 121 non-agency MBS trusts. According to the complaint filed in federal district court in Manhattan, Deutsche Bank failed to protect five corporate credit unions – U.S. Central, WesCorp, Members United, Southwest and Constitution – that purchased $140 billion in RMBS issued from the trusts between 2004 and 2007. The securities lost...
After a year of looking, the Federal Housing Finance Agency announced last week it has finally picked a chief executive to run the fledgling Common Securitization Solutions: industry veteran David Applegate, who has a long resume in mortgage banking. Applegate led both GMAC Mortgage and GMAC Bank during a 17-year career at General Motors Acceptance Corp He also worked at mortgage insurer Radian Guaranty. Applegate’s last job title was president and chief executive officer of Homeward Residential, Dallas, a mortgage-banking firm.
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