PennyMac has announced that, effective immediately, for FHA, VA, Fannie Mae and Freddie Mac transactions, lenders may provide Equifax’s The Work Number verification of employment, or a written VOE from an equivalent income-verification company in lieu of tax transcripts for salaried borrowers. The Work Number is a user-paid VOE database acquired by Equifax in February 2007. The written VOE must have full income figures supporting the qualifying income, said PennyMac. For all loans closed on or after June 15, 2017, the 2016 tax transcript will be required, unless the file contains evidence an extension was filed along with a copy of the Internal Revenue Service notice for 2016 showing “no record of return filed.” For all loans closed on or after Dec. 15, 2017, 2016 tax returns and tax transcripts will be required. PennyMac reminded lenders that its underwriting system cannot respond to ...
Appropriation levels for FHA and Ginnie Mae from the previous fiscal year were unchanged in the FY 2017 omnibus spending bill, which President Trump signed into law on May 5. The bill, which passed the House by a 309-118 vote and the Senate by a 79-18 vote on May 4, will fund the federal government through the rest of the fiscal year ending Sept. 30, 2017. Among other things, the bill allocates $400 billion to single-family guarantee commitments under the FHA Mutual Mortgage Insurance Fund, and provides $130 million for administrative contract expenses. In addition, the budget provides an additional $30 million if guaranteed loan commitments exceed $200 billion. The agreement also sets aside up to $30 billion for FHA multifamily and specialized loan guarantees during FY 2017. A total of $55 million was set aside for housing counseling programs, $65.3 million for fair housing activities, and $4 million to ...
With only days to go before the implementation of its new Loan Review System, the FHA is encouraging lenders to take a few more steps to ensure smooth transition to the new system. The LRS will go live on May 15, 2017, as the new electronic platform for FHA’s Title II single-family, quality-control processes. Lenders will use the LRS to interact with FHA during post-endorsement loan reviews, direct endorsement authority test cases, lender monitoring reviews and lender self-reporting of fraud and other material findings. Findings will be communicated through the system’s defect taxonomy, which provides a streamlined method of identifying and capturing information about defects uncovered during individual loan reviews. In its latest guidance, the FHA instructs lenders to check access to FHA Connection for any potential glitches. All users access the LRS through FHA Connection via the ...
The Department of Housing and Urban Development this week announced the appointment of industry executive Adolfo Marzol as senior advisor to HUD Secretary Ben Carson. Prior to his appointment, Marzol was a member of the board of directors of Essent Group, a private mortgage insurance company based in Radnor, PA. He resigned from the board on May 6, 2017. Marzol retired as executive vice president of Essent in 2015. During his long career, he held senior posts at Fannie Mae, including executive vice president and chief credit officer. He left the government-sponsored enterprise in 2004. Prior to his stint with Fannie, Marzol worked at Chase Manhattan Mortgage, which is now a part of JPMorgan Chase. HUD noted that Marzol will advise Carson “on matters related to mortgage finance.” An experienced professional, his expertise lies in housing finance reform. “His knowledge of ...
New USDA Chief. Former Georgia Governor Sonny Perdue was sworn in as Secretary of Agriculture on April 25, shortly after the Senate confirmed him. At the same time, President Trump signed an executive order creating a task force on growing housing, among other things, as an economic driver in rural communities. Improved Lender Search List Launched. The FHA last week announced an improved lender list-search capability to help the public search for FHA-approved single-family and multifamily lenders. The search engine allows search on a variety of criteria, including lender name, city, state, servicer-originator type, and recent Home Equity Conversion Mortgage or 203(k) rehabilitation mortgage experience. The Department of Housing and Urban Development’s new Lender List Search web page replaces the previous Lender List lookup page on HUD.gov. While search criteria have not ...
Private mortgage insurers were the largest providers of insurance coverage on purchase loans securitized by the three agencies in early 2017, according to a new Inside Mortgage Finance analysis. Private MI coverage was attached to $40.08 billion of purchase mortgages securitized by Fannie Mae and Freddie Mac during the first quarter. That equaled 26.3 percent of total purchase business by the two government-sponsored enterprises and Ginnie Mae. The FHA provided...[Includes one data table]
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