A Department of Housing and Urban Development requirement for a face-to-face meeting has become quite a compliance challenge for lenders seeking mortgage foreclosure, according to legal experts. In Dan-Harry v. PNC Bank, a federal court in Rhode Island concluded that a borrower may bring a claim for damages and other remedies against a lender for failure to conduct a pre-foreclosure face-to-face meeting with the borrower – a requirement for breach of an FHA-insured mortgage. In an analysis of the court’s ruling, attorneys at the Chicago law firm Hinshaw & Culbertson said the decision is significant because the HUD regulation provides no private right of action. In addition, Rhode Island law does not recognize a cause of action for breach of good faith and reasonable diligence in foreclosure, they noted. Nevertheless, the legal experts pointed out that Rhode Island federal courts effectively ...
The U.S. Department of Agriculture has announced proposed changes to the maps the Rural Housing Service uses to determine whether certain areas are eligible for its single-family and multifamily housing programs. RHS reviews the areas it covers every five years to determine which ones would be eligible for USDA home-loan guarantees. The proposed maps are based on RHS’s 2017-2018 review of data collected from the U.S. Bureau of Census 2015 American Community Survey. The ACS provides information about changes in the U.S. population, housing and workforce. The current RHS maps are based on RHS’s 2012-2013 review of the 2010 U.S. Census. The proposed maps will become effective on June 4, 2018. Properties located in areas that have been reclassified from rural to non-rural on the maps’ effective date may qualify for RHS’ housing programs if they meet certain conditions. First, the ...
To Fix FHA, Provide Certainty, Says MBA President. It would be inappropriate for FHA to return to pre-recession levels of insuring loans that led to many of its problems, but lenders are wary of taking up the slack, said David Stevens, president and CEO of the Mortgage Bankers Association. Speaking during a forum hosted by the National Fair Housing Alliance, Stevens echoed concerns of fellow panelists that FHA does not work as well as it should. An advocate for removal of the Home Equity Conversion Mortgage portfolio from the Mutual Mortgage Insurance Fund, Stevens said doing so would strengthen the fund and provide a more accurate picture o FHA’s forward book of business. It could also lead to the consideration of a mortgage insurance premium reduction he said. But as FHA struggles with issues hampering its ability to provide access to credit, lenders are hesitating to fill the gap because of the ...
Two of the nine MBS issuers that Ginnie Mae singled out for unusual MBS prepayment speeds reportedly have been restricted from the agency’s multi-issuer MBS pools.
There is a lot of interest in Ginnie Mae’s proposed credit-risk transfer pilot with FHA that’s scheduled for later this year, according to the agency’s acting chief.
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