The FHA has revised the order of loss-mitigation options for FHA borrowers whose properties or jobs are located in hurricane-ravaged areas in Puerto Rico and the U.S. Virgin Islands. Under the revised policy, FHA is allowing lenders to evaluate borrowers in the affected areas first for the “disaster stand-alone partial claim” before the disaster loan modification. The agency believes this change will enable more affected borrowers to get into a permanent loss-mitigation solution and keep their mortgage in good standing. The policy specifically allows borrowers to maintain their pre-disaster monthly principal and interest payment and retain their current interest rate and term of the FHA-insured mortgage. In addition, the policy provides for the repayment of arrearages with a subordinate mortgage lien that is not repaid until the maturity of the FHA loan, the sale of the property, or the payoff of the loan, or non-FHA refinancing ...
Ocwen Financial Corporation is no longer in danger of losing its Ginnie Mae issuer status after the agency earlier this month officially announced its concerns over the specialty servicer’s problems with state regulators are resolved. Ocwen, a publicly traded Florida corporation, disclosed in a new filing that, based on information it provided to Ginnie Mae regarding the resolution of state cease-and-desist orders issued by a coalition of state banking regulators, the agency considers the issue to be concluded. In April last year, 30 state mortgage regulators issued cease-and-desist orders to prevent Ocwen from servicing loans within their jurisdictions. The servicer was accused of substandard loan servicing that violated state and applicable federal laws The orders generally prohibited Ocwen from acquiring new mortgage servicing rights, originating or acquiring new mortgage loans for which Ocwen would be the ...
Buoyed by a surge in new business written and profitability, private mortgage insurers outpaced government-backed mortgage insurance programs in the second quarter of 2018. The six active private MIs wrote primary insurance on $80.3 billion of newly originated home loans during the second quarter, up 37.5 percent from the previous quarter and represented the industry’s best results since the fourth quarter of 2007. At the end of the second quarter, private MIs accounted for 38.7 percent of the primary MI market. FHA and VA saw their shares fall slightly to 34.8 percent and 24.5 percent, respectively. Private MIs saw increased activity in the purchase-mortgage business with the six firms combining for $75.7 billion of new purchase mortgages during the second quarter, up 47.3 percent from the first three months of the year. FHA purchase-mortgage business was also up by 33.0 percent during the ...
The U.S. Department of Agriculture’s Rural Housing Service is considering whether to modify the maximum interest rate charged on single-family rural mortgages with a USDA guarantee. The RHS, which administers the USDA’s guaranteed rural housing program, is seeking public input on how establishing a maximum interest rate could affect lending to potential borrowers. The agency is also seeking comments on how the maximum rate could be modified to help those rural folks who could not obtain a conventional loan become homeowners, finance housing repairs and rehabilitation costs in relation to a home purchase, and refinance an existing USDA loan to lower the rate. The USDA Section 502 Handbook defines the maximum allowable interest rate as “the current Fannie Mae posted yield for 90-day delivery (Actual/Actual), plus one percent for 30-year fixed-rate, conventional loans, rounded up to the ...
An undetermined defect is causing the Department of Veterans Affairs’ loan servicing reporting system to spit out duplicate bill-of-collection transaction numbers. The VA Home Loan Guaranty staff is collaborating with the Administrative Loan and Accounting Center (ALAC) to work around the issue. The resolution to correct the defect in the VA Loan Electronic Reporting Interface (VALERI) application is scheduled to be included in the 18.4 VALERI release on Dec. 8, 2018. VALERI is in the first phase of a three-year project to convert from a system for reporting and storing servicing data to an end-to-end mortgage-processing platform. The VA also has issued a number of servicing alerts and reminders. Liquidation appraisal fees in Colorado will increase in certain counties effective Sept. 1, 2018, so that all counties will have the same fee per property type. The fee changes will be updated and reflected on the ...
Michael Bright Clears First Hurdle to Becoming President of GNMA. The Senate Committee on Banking, Housing and Urban Affairs this week voted to confirm Michael Bright as president of Ginnie Mae. Bright’s confirmation is broadly positive for housing, said Jaret Seiberg, financial services and housing policy analyst for Cowen Washington Research Group. Bright is a former staffer for Sen. Bob Corker, R-TN, and has a history of working well with Republicans and Democrats, said Seiberg. In addition, he has worked closely with Sen. Elizabeth Warren in cracking down on loan churning, he added. The Mortgage Bankers Association welcomed the news. “Mr. Bright would bring significant experience within the mortgage industry and on Capitol Hill to the role of Ginnie Mae president,” said Bill Kilmer, the group’s chief lobbyist. “He has demonstrated a commitment to bipartisan solutions regarding complex ...
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