The FHA is looking at non-traditional factors in credit scoring that might be considered in determining a borrower’s creditworthiness. In remarks during a credit-access symposium co-hosted by the National Association of Realtors and other industry groups, Department of Housing and Urban Development Secretary Julian Castro said the FHA is looking at various alternative credit-scoring models that might help increase homeownership opportunities for more people ...
The reverse mortgage lending industry is asking the Consumer Financial Protection Bureau to clarify that reverse mortgages are excluded from proposed changes to mortgage servicing rules relating to “successors in interest.” In a comment letter, the National Reverse Mortgage Lenders Association warned that requiring lenders to determine which parties meet a new regulatory definition of “successor in interest” could expose lenders to numerous, costly risks. The requirement would ...
The FHA is urging 203(k) program lenders and consultants to be aware of key policy revisions when reviewing the published versions of the 203(k) Rehabilitation Mortgage Insurance Program and 203(k) Consultant Requirements in the new Single-Family Housing Policy Handbook. The revised policies include changes to reflect a clearer, more direct and consistent language and terminology. However, they do not represent a significant departure from 203(k) origination policies or ...
1st Alliance Lending of East Hartford, CT, has announced a new multi-channel lending platform to help underwater homeowners refinance into affordable government-backed mortgages and help those who have lost their homes previously in bankruptcy obtain a new mortgage. The platform focuses mainly on the FHA Short Refi program and the agency’s “Back to Work – Extenuating Circumstances” program. The multi-channel platform adds a wholesale channel to ...
Last week, the Consumer Financial Protection Bureau brought an enforcement action against RMK Financial Corp., an FHA/VA lender based in Rancho Cucamonga, CA, for allegedly using deceptive mortgage advertising practices, including the use of ads that led consumers to believe that the company was affiliated with the U.S. government. The bureau alleged that RMK, also known as Majestic Home Loans, used the names and logos of the Department of Veterans Affairs and ...
New Day USA, a major VA lender, agreed to a multi-million dollar settlement this week with state regulators and removed its chief operating officer due to widespread violations involving the Secure and Fair Enforcement for Mortgage Licensing Act. The lender will pay a $5.28 million administrative penalty as part of a consent order and settlement with regulators from 42 states and Washington, DC. New Day also removed COO Paul Alger. In order to meet continuing education requirements ...
Low interest rates have pushed FHA prepayments to 34 percent above actual predictions while claim payments are 24 percent below predicted levels in 2014, according to the agency’s most recent quarterly report to Congress. Actual loss rates of 47.43 percent remained below the actuarially projected 54.65 percent, the report showed. Meanwhile, the Mutual Mortgage Insurance Fund account balances totaled $46.2 billion in the fourth quarter, no change from the previous quarter ...
New Standards for VA Compliance Inspectors. The Department of Veterans Affairs announced that compliance inspectors must adhere to new qualifications and pass an updated, more comprehensive exam that includes information relevant to Specially Adapted Housing. Policy staff decided the current exam was not effective since it did not address issues such as SAH-specific building practices, procedures, and minimum property requirements ... [Includes two briefs]
Fannie Mae and Freddie Mac issued a robust $189.92 billion of single-family mortgage-backed securities during the first three months of 2015, according to a new Inside The GSEs analysis.Business in the GSEs’ core MBS guaranty program grew 5.9 percent from the fourth quarter of last year. The pace in early 2015 was up a hefty 47.0 percent from the same period last year, which was the weakest quarter in over a decade. Nonbank seller/servicers continued to gain market share. These companies accounted for 45.6 percent of GSE MBS issued in early 2015, and their total production was up 7.7 percent from the previous quarter. (Includes 2 exclusive charts).
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