The plaintiffs argue that state law prohibits the preferred stock of a corporation from getting a cumulative dividend right equal to all of a company's net worth...
The Federal Housing Finance Agency’s recent final rule limiting membership in the Federal Home Loan Bank system will reduce funding for originations of non-qualified mortgages and other non-agency activity, according to industry analysts. In recent years, many real estate investment trusts gained access to FHLBank advances via captive insurance companies. A final rule from the FHFA this month closed that so-called loophole, with the regulator claiming that Congress didn’t ...
Redwood Trust announced last week that it will discontinue acquiring and aggregating conforming mortgages for resale to the government-sponsored enterprises. Officials at the real estate investment trust stressed that Redwood’s jumbo operations will continue. Redwood started selling conforming mortgages to Fannie Mae and Freddie Mac in 2014, acquiring $4.0 billion in conforming loans during the year along with $5.0 billion in jumbos. Through three quarters in 2015, Redwood had ...
The FHA has given lenders and servicers an additional extension through April 17, 2016, to submit due-and-payable notices when Home Equity Conversion Mortgage borrowers fall behind on their property tax or insurance payments. The extended deadline also provides FHA lenders and servicers an opportunity to pursue loss mitigation before initiating foreclosureThe latest deadline extension was the second such extension. In April 2015, the FHA announced a policy change providing HECM lenders and servicers an additional 60 days in which to initiate foreclosure proceedings against any troubled HECM borrower with a case number issued prior to Aug. 4, 2014, with a non-borrowing spouse. Lenders and servicers are required to comply with reasonable-diligence timeframes for such HECMs. Debenture interest will not be curtailed during this period. The April policy allows mortgagees full discretion as to when to use the extension.
Bowing to pressure from investors – in particular, Carl Icahn – American International Group this week rolled out a blueprint to increase shareholder value, including a partial spin-off of its top-ranked mortgage insurance division, United Guaranty Corp. Although both AIG and UGC were not entertaining questions on the details, a spinoff of the MI business could come by mid-year with up to 19.9 percent of the unit being sold to the public. Eventually, AIG said...
Mortgage Guaranty Insurance Corp. will readjust its current premium rates to meet its modest return-on-equity goal and achieve limited growth in its insurance-in-force in 2016, but whether this will precipitate similar moves across the private mortgage insurance industry remains to be seen. In announcing the company’s fourth quarter 2015 results, Patrick Sinks, chief executive officer of MGIC Investment Corp. and Mortgage Guaranty Insurance Corp., disclosed plans to revise premium rates to “generate comparable returns” across the spectrum of loans the company insures. MGIC expects...
A battle on the legislative or even legal front may be brewing that challenges the Federal Housing Finance Agency’s recent decision to exclude certain types of insurance companies from membership in the Federal Home Loan Bank system. The biggest impact of the final rule would be to force a number of real estate investment trusts that have formed captives to gain access to the FHLBanks to give up low-cost FHLBank advances. “The impact on mortgage liquidity and credit access should be...
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