Rural borrowers will be paying a higher upfront fee for mortgage loans with a Rural Housing Service guaranty, the U.S. Department of Agriculture has announced. In an advance notice, the USDA said it will raise the upfront guaranty fee for loans originated under the RHS’ Single Family Housing Guaranteed Loan Program in FY2016. For purchase and refinance loans, the upfront guaranty fee will change from 2.00 percent to 2.75 percent of the loan amount. The annual fee will remain at 0.50 percent. The fee increase will apply to guaranteed loans obligated on Oct. 1, 2015, through Sept. 30, 2016, the USDA said. A loan is obligated when the USDA has approved a complete loan-application package and issued a conditional commitment for a single-family housing loan guarantee to the USDA lender. The new fee will apply to loan guaranty requests submitted to the USDA prior to Sept. 30, 2015, without a ...
The Internal Revenue Service is rejecting some lender requests for tax-return transcripts due to a recent data breach, warned the U.S. Department of Agriculture’s Rural Housing Service in a lender alert. According to the RHS, the IRS action is meant to deter any fraud that might result from identity theft. The IRS has not responded to a request for confirmation or comment as we went to press. An IRS tax transcript is required as part of a complete loan-application package submitted to a mortgage lender to request a conditional loan commitment. The transcript contains the borrower’s tax record for the current tax year and three prior processing years. The RHS, which guarantees rural housing loans under its Single Family Housing Guaranteed Loan Program (SFHGLP), has issued guidance if a transcript request from a lender returns with the following message: “Due to limitations, the IRS is unable to ...
GNMA to Modernize Management of Loan Docs that Serve as Pool Collateral. Ginnie Mae plans to reform its document custody policies to minimize agency risks. Michael Drayne, Ginnie’s senior vice president of issuer and portfolio management, said the changes will apply to documents for loans that serve as collateral for securitized pools of mortgages. Current policies will be reexamined to see whether they adequately reflect and mitigate actual risks. Existing technology will be reevaluated as well. Ginnie will also study how to integrate document-custody functions and information into the agency’s systems. In addition, Ginnie will look at whether information about the status of pool collateral should be managed at the loan level, not merely the pool level. Furthermore, the agency will reevaluate the need to reexamine its enforcement methods and whether they should be ...
Franklin Codel of Wells Fargo noted that while it’s a challenging time in the economy and for lenders, many agree that quality and clarity of who owns the risk matters.
Sometimes lost in the hoopla over the rising nonbank share of mortgage servicing is that banks have fallen in and out of love with the servicing market for decades.
The outstanding supply of single-family MBS declined 0.7 percent during the first quarter of 2015, according to a new Inside MBS & ABS market analysis. But that didn’t stop commercial banks from continuing to increase their holdings.
Correspondent originators continued to produce significantly more purchase mortgages as a share of their total production than brokers or retail lenders, according to a new Inside Mortgage Trends analysis of loans securitized by Fannie Mae, Freddie Mac and Ginnie Mae during the first quarter of 2015. Some 55.9 percent of correspondent originations were purchase loans, compared to just 36.5 percent for retail production and 35.1 percent for ... [Includes one data chart]
Industry observers noted that FAQs didn’t answer some of the big questions that matter to lenders, such as quality control, student debt and pre-funding review requirements.
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