FHA officials first asked for the servicing authority back in June, but the request has gone nowhere. Fannie Mae and Freddie Mac already have transfer authority.
Compared to June 30, MBS investments by REITs are off 6 percent. Moreover, the industry has lost nearly all of the huge volume of MBS that were acquired in early 2012.
During the first half of 2013, only about $2.05 billion of FHA loans exceeded $625,500, or about 1.5 percent of FHA business, according to Inside Mortgage Finance.
Higher guaranty fees at the government-sponsored enterprises and lower loan limits for FHA mortgages in 2014 aren’t expected to prompt an increase in the issuance of non-agency mortgage-backed securities because the economics for securitization remain unattractive. Industry analysts are also concerned that the Senate’s confirmation of Rep. Mel Watt, D-NC, as director of the Federal Housing Finance Agency could slow efforts to shift business from Fannie Mae and Freddie Mac to the non-agency market. The FHFA announced ...
Severe decreases in the FHA loan limits in numerous counties across the country have spurred industry demand for the Department of Housing and Urban Development to disclose the methodology and process it used to determine the new loan limits. Although HUD’s announcement of lower FHA loan limits for 2014 had been long expected, mortgage industry participants were caught off guard by the substantial reductions in FHA loan limits caused by the statutory change in how the limits are calculated and by revised median house prices. For 2014, HUD announced that the national ceiling limit for single-family mortgages in high-cost areas would decline to ... [1 chart]
Policy changes implemented since 2009 appear to be having a positive impact on the FHA Mutual Mortgage Insurance Fund, which is still $1.3 billion in the red, but its net worth grew $15 billion over last year’s estimate, according to the latest independent actuarial audit of the FHA fund. The MMI Fund’s economic value improved from negative $16.3 billion last year to negative $1.3 billion. Its capital reserve ratio, which has been a cause of disagreement among lawmakers and industry players, also rose from negative ...
With one week left on Congress’ calendar year, Senate approval of S. 1376, the FHA Solvency Act of 2013, before the end of 2013 is becoming more unlikely, according to lobbyists. The bill is stalled and is unlikely to be brought to the floor any time soon. If the housing sector continues to improve, the government-sponsored enterprises continue to generate profit and the FHA’s newer books of business continue to perform well, passing GSE or FHA reform legislation next year would be an uphill battle, lobbyists said. The Congressional Budget Office estimates that implementing S. 1376 would result in ...
The Department of Housing and Urban Development has released a final rule defining a “qualified mortgage” that is insured by the FHA. The final rule will be effective on Jan. 10, 2014. The HUD rule builds off the QM/Ability-to-Repay rule, which the Consumer Financial Protection Bureau finalized earlier this year. The Dodd-Frank Act requires HUD to propose a QM definition that is aligned with the ability-to-repay criteria set out in the Truth in Lending Act and with the agency’s mission to ...
RSS