A proposal this week for how to reform the government-sponsored enterprises included a provision that would allow for an adjustment of the agency share of mortgage financing via loan limits. The loan limit proposal would differ from current practices where the Federal Housing Finance Agency makes increases to the conforming loan limit based on home price trends. The proposal, “A More Promising Road to GSE Reform,” was authored by Jim Parrott, Lewis Ranieri ...
The Department of Veterans Affairs FY 2017 budget is seeking $34 million for the VA Loan Electronic Reporting Interface (VALERI) to manage the 2.4 million VA mortgages in portfolio. VALERI connects VA with more than 225,000 approved mortgage servicers and an estimated 320,000 veteran borrowers. Specifically, the system is used to manage and monitor servicer and VA staff activities aimed at providing timely and appropriate loss-mitigation assistance to defaulted borrowers. Without these resources, approximately 90,000 veterans and their families would be in danger of losing their homes each year, the VA said. Furthermore, this could cost the VA $2.8 billion a year in additional expense. In addition, VALERI also supports payment of guaranty and acquisition claims.Meanwhile, starting March 19, VA servicers began using the new version of the bulk upload templates to ...
The impact of the TRID integrated-disclosure rule that took effect on Oct. 3 seems to have had little impact on Fannie Mae and Freddie Mac. For now, the government-sponsored enterprises are focused on whether sellers are using the correct forms, not whether there are mistakes. The GSEs have amended their contractual obligations with their customers to let them know that the customer is responsible for any potential or actual loss as a result of TRID violations. “So they’re basically turning what was a repurchase obligation into an indemnification obligation,” said...
“Mortgage g-fees should only be used as a buffer against mortgage defaults, not as a piggy-bank for increased government spending,” said NAR chief Salomone.
Within the next 30 days, the Federal Housing Finance Agency will put to rest its long-running deliberations over whether Fannie Mae and Freddie Mac will allow principal reductions for certain distressed home mortgages. The Wall Street Journal reported earlier this week that the agency has already made the decision to go ahead with the plan on a limited basis. But in remarks at a public forum in Washington, DC, this week, FHFA Director Mel Watt said the agency is still mulling it over. Watt said...
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