The Department of Housing and Urban Development is discontinuing its quarterly newsletter, Lender Insight, with the implementation of FHA’s Loan Review System. The change is aimed at improving both FHA’s and lenders’ quality-control and risk-management operations. HUD will be publishing a quarterly Loan Review Summary Report to provide a snapshot of the results of FHA’s quality-control review of mortgage originations over the preceding 12 months. According to HUD, the report will include only underwritten loans that were subject to a post-endorsement technical review. It does not include the results of lenders’ self-reports or any other loans that were reviewed as part of a lender examination, the agency said. The report will show the initial rating of all loans, the updated rating six months from the end of the review period, and a final rating. The “final” rating is subject to change as long as ...
The Department of Housing and Urban Development inspector general praised the agency for ensuring purchasers participating in HUD’s single-family note sales program complied with the terms in their purchase agreements. The inspector general noted, however, the need to improve the requirements in the purchase agreements. The IG found those requirements inadequate due to the lack of formal rules for the note sales program. “If a purchaser chose not to comply with its purchase agreement, HUD lacked assurance that the purchaser would offer homeowners foreclosure avoidance, loan-modification options, and other program requirements,” the IG’s audit report stated. Under the agreement, loan buyers must certify their avoidance of final closure for the required period of time, perform loan modification, and submit quarterly reports on their progress, including results of ...
Over the past week or so, at least two institutional investors have filed notice with the Securities and Exchange Commission that they no longer own large positions in PHH Corp., the publicly traded nonbank that’s trying to reinvent itself as a subservicing specialist. The two filers are investment banking powerhouse Morgan Stanley – which at one time owned 5.2 percent of PHH – and Hotchkis and Wiley Capital Management, whose stake totaled 8.8 percent. Today, Morgan’s position ...
Social Finance, the high-flying marketplace lender, has an active mortgage-lending joint venture with Stearns Lending, according to David Schneider, CEO of Stearns. In a recent interview with Inside Mortgage Finance, Schneider said his company “covers a lot of [SoFi’s] business” and buys any loan the joint venture produces. “They do some, and we do some,” Schneider said. He added that Stearns doesn’t service any loans for SoFi. At the recent ABS East conference in Miami, Ashish Jain ...
Annaly Capital Management, the nation’s largest real estate investment trust focused on the MBS market, hopes to raise upwards of $780 million through the sale of additional shares of common stock – money that it will invest in MBS and related assets. According to a press statement made by the New York-based firm, it also plans to further diversify its investments, putting the new money to work in commercial and “corporate credit assets.” In total, Annaly registered 65 million shares of ...
RSS