The Department of Housing and Urban Developments proposed qualified mortgage rule attaches certain conditions to QM treatment that may complicate matters for participating lenders, said attorneys with K&L Gates in Washington, DC. On Sept. 30, the Department of Housing and Urban Development published its own proposed QM rule for FHA loans. The CFPB rule takes effect on Jan. 14, 2014, and will apply to FHA loans until HUD issues a final rule. Under the CFPB rule, many FHA loans would not qualify for the rules safe harbor because the higher mortgage insurance premiums would make them higher priced mortgage loans. Thus, in order to ...
Two surviving spouses of deceased reverse mortgage borrowers won their case against the Department of Housing and Urban Development after a U.S. court found HUD in violation of federal law for failing to protect the spouses from foreclosure. The courts decision marks a turning point for surviving spouses, such as Robert Bennett of Annapolis, MD, and Leila Joseph of Brooklyn, NY, and ensures that they will be protected against eviction and foreclosure, despite the loss of their husband or wife, said Jean Constantine-Davis, a senior attorney with the AARP Foundation Litigation. In March 2011, the AARP and the law firm of Mehri & Skalet of Washington, DC, filed ...
The Federal Housing Finance Agency holds the keys to the Fannie Mae/Freddie Mac loan limit kingdom, but its giving no clues or interviews as to where its headed on the issue. Meanwhile, pressure is mounting on the regulator to do nothing. As far as the mortgage industry is concerned, it knows a change is coming and hopes that when FHFA finally lowers the current high-cost limit of $625,500 the implementation date will come deep into the second quarter of 2014, or at the very least, March 31.
The Appraisal Foundation suggested this week that alternative valuation products likely will not comply with professional appraisal standards in most cases. If an AVP requires the same development and reporting requirements as an appraisal, the Appraisal Foundation said in a white paper, why would the industry create the AVP in the first place? The foundation noted that the Appraisal Standards Board does not deem any alternative valuation product or form as compliant with the industrys ...
HUD Delays Implementation of Short-Sale Participation Requirement. The implementation of the PFS Participation Requirement, which is found in Mortgagee Letter 2013-23, Updated Pre-Foreclosure Sale and Deed-in-Lieu-of-Foreclosure Requirements, has been delayed indefinitely. All other provisions included in the mortgagee letter remain in effect. Previous guidance on short-sale participation requirements also remain in effect until further notice. FHA to Consolidate Lender ID Numbers. The FHA will consolidate the lender identification numbers of those participating in both the FHA Title I and Title II programs, provided ...
Six federal regulators, including the Federal Housing Finance Agency, re-proposed risk-retention requirements, as well as the definition for qualified residential mortgages this week, making significant changes that had been sought by lenders. The new proposal revises a proposed rule the agencies issued in 2011 to implement the risk-retention requirement of the Dodd-Frank Act. Among other things, the rule would recognize the full guaranty on payments of principal and interest provided by Fannie Mae and Freddie Mac for their residential mortgage-backed securities as meeting the risk-retention requirements while the two GSEs are in conservatorship or receivership and have capital support from the federal government.
The Federal Housing Finance Agency, after months of interviewing executive search firms, has hired the Washington-based Spencer Stuart to find a chief executive to man the helm of the common securitization platform project being developed by the two government-sponsored enterprises. According to sources familiar with the regulators plans, the starting salary for the job is in the range of $450,000, plus benefits. Sources say FHFA has handed...
More than a year after it was issued under court-ordered duress, the Federal Housing Finance Agency has withdrawn its proposed rule concerning Fannie Mae and Freddie Mac underwriting standards related to mortgages affected by Property Assessed Clean Energy programs. Local governments use the PACE Program, which is part of the American Recovery and Reinvestment Act of 2008, to provide financing secured by a priority lien on the property to homeowners for the purchase of energy-related home improvements. While 27 states and the District of Columbia have legislation in place to permit PACE financing for green homes, in July 2010 Fannie and Freddie stopped purchasing PACE-related mortgages that had automatic first-lien priority over previously recorded mortgages.
Certain provisions in the Consumer Financial Protection Bureau’s proposed changes to its mortgage servicing rule conflict with Fannie Mae’s and Freddie Mac’s own servicing guidelines and should be amended, according to the Federal Housing Finance Agency. In a comment letter, the Finance Agency cited the similar goals of the FHFA’s single, consistent set of servicing procedures established in 2011 to form the Servicing Alignment Initiative and the bureau’s 2013 Mortgage Servicing Final Rule.
A former FHA commissioner said he supports a proposal in the Protecting American Taxpayers and Homeowners Act (PATH Act) to spin off the FHA from the Department of Housing and Urban Development as an independent government-owned corporation. Brian Montgomery, who was assistant secretary for housing and head of the FHA during the Bush administration, said the separation, if enacted, would transfer authority, resources and personnel from HUD to the FHA to manage the insurance fund. This is something I have advocated both during and after my more than four-year tenure as FHA commissioner, said Montgomery, who ...