HUD Secretary Shaun Donovan said this week that housing finance reform can no longer be put off, but no more so than for the FHA which continues to play an “outsized role” in the mortgage market as private capital remains on the sidelines. Speaking in New York at an event co-hosted by the Bipartisan Policy Center, Donovan said the Obama administration is squarely behind the legislative proposal by Senate Banking, Housing, and Urban Affairs Committee Chairman Tim Johnson, D-SD, and Ranking Member Mike Crapo, R-ID. “Despite its imperfections, does this bill represent progress? Absolutely,” said Donovan, seeking to win over housing advocacy groups disenchanted with the bill. “When looking for ways to improve [the bill], let’s not lose sight of its potential. Let’s not forget its importance to the housing market and its future.” The Johnson-Crapo legislative proposal calls for a wind-down of Fannie Mae and Freddie Mac and creation of a ...
Home Loan Servicing Solutions recently completed its first acquisition of Ginnie Mae whole loans through the agency’s early buy-out (EBO) program. The purchase price for the FHA-insured loans was $556.6 million. HLSS acquired the loans from Ocwen with an unpaid principal balance (UPB) of $549.4 million. Ocwen initially acquired the loans through the GNMA EBO program, which allows Ginnie Mae servicers to purchase delinquent loans from applicable loan securitization pools. HLSS financed its purchase by opening a new $600 million mortgage loan facility. It received $472.7 million in proceeds from this facility to help fund its EBO loan purchase from Ocwen. The loans are held as investments in a special purpose entity (SPE). “It is our expectation that since our GNMA EBO loans are insured by the FHA, the cash flows of this SPE will be sufficient to meet all claims of the debt holders,” the company said ...
The CFPB will work with participants to test many eClosing features, including those that may enable consumer understanding, incentivize early document review and facilitate error detection.
He cited one example where a $40 billion MSR package can be sold to one buyer that agrees to board the servicing files in increments of say $5 billion a month.
Industry representatives who, since the 1990s, have been imagining a world of electronic mortgage transactions and related documentation took renewed inspiration from the Consumer Financial Protection Bureau’s announcement this week of a pilot project aimed at using the latest in technology to diminish the “pain points” of the closing process. Brian Webster, the originations program manager for mortgage markets at the CFPB, said last week that the bureau had identified 1,480 such sore spots. But during a public forum held this week, the CFPB focused on a handful of primary problems it said consumers have with the way mortgage closings are handled in the American market. First, they feel...
As for details, a spokesman for the company said Ellie isn’t talking about the topic at this time. In an email exchange with IMFnews, mortgage technology consultant Tony Garritano of Progress in Lending called the whole episode “very bizarre”…
Some stakeholders said they called the firm’s investor relations department about the latest probe and were told the firm would be saying more about the matter when it reports first quarter earnings.
The conditional prepayment rate for prime jumbo, Alt-A and subprime loans dropped to 14.7 percent, 10.3 percent and 8.8 percent, respectively, in the first quarter of 2014, according to the ratings service.
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