The FHA’s effort to shrink its presence in the mortgage insurance market to make room for private capital has benefited the private mortgage insurance industry, which has reclaimed some market share from its main government rival. This acknowledgement by private mortgage insurers during this week’s launch of a new MI industry trade association helped clarify the question of whether market stabilization or the FHA’s deliberate effort to reduce its participation in the market drove MI growth over the past three years. “If you think back, the FHA has been very vocal, particularly [Department of Housing and Urban Development] Secretary Shaun Donovan, about wanting to rebalance private MI participation in the market,” said Teresa Bryce Bazemore, president of Radian Guaranty and a member of the board of directors of the new trade group, U.S. Mortgage Insurers. “We saw our share of the market grow by more than 11 percent in 2013, and I think that is a ...
Legislation seeking a recalculation of the Department of Housing and Urban Development’s loan limits for 2014 was introduced this week in the House of Representatives. Authored by Rep. Gary Miller, R-CA, H.R. 4208 (The Stabilizing FHA Loan Limit Calculation Act of 2014), would address credit availability problems caused by the statutory change in the way FHA loan limits are calculated and by revised median housing prices. More than 650 counties throughout the country saw their median house prices drop, some by as much as 20 percent to 50 percent, because of the 2014 calculation. Approximately 93 percent of California’s housing market or 54 counties have experienced severe declines in their FHA loan limits in 2014. For example, in Miller’s Riverside-San-Bernardino-Ontario district, the median price for a one-unit property fell from $500,000 in 2013 to $355,350 in 2014 – a 30 percent difference. In 2013, an estimated 8,000 home sales with ...
The Department of Housing and Urban Development has completed modifications to its Home Equity Reverse Mortgage Information Technology (HERMIT) system to accommodate new premium structures and initial disbursement limits that were implemented last September. Launched in October 2012, HERMIT is HUD’s online-web-based automated system for monitoring and tracking its Home Equity Conversion Mortgage portfolio, collecting mortgage insurance premiums (MIP) and paying insurance claims. Lenders also access HERMIT to notify HUD of a borrower’s death and the initiation of foreclosure. While HUD had already modified FHA Connection and released an updated version of the HECM calculation software to accommodate the latest modifications, changes to the HERMIT system were delayed until now. HUD instructs FHA lenders to follow the mapping instructions for borrowers’ mandatory obligations in HERMIT to ...
The Collingwood Group Snags Former Senior VA Executive.Keith Pedigo, former national director of the VA Home Loan Guaranty Program, has joined The Collingwood Group, a business advisory firm based in Washington, DC. Pedigo served as head of the VA program for 21 years. Standardized Multifamily FHA Mortgage Insurance Applications. The Department of Housing and Urban Development has updated its lender application templates for mortgage insurance under the FHA’s multifamily housing program. The following standardized documents are being implemented: Underwriter Narrative; Application Checklist and FHA Summary ...
Well, at least GSE junior preferred shares are holding their own. Also, Five Oaks Investment is approving correspondents for its new jumbo flow-program...
The first two months of 2014 generated just $132.85 billion of new agency MBS, down 57.6 percent from the same period last year. A harsh winter in many parts of the country hasn’t helped.
Greater standardization and transparency is needed to overcome the impediments to growing a new issue, non-agency MBS market, according to Michael Stegman, housing finance policy adviser to Treasury Secretary Jacob Lew. In remarks this week at the JP Morgan Securitized Products Research Conference, Stegman said lack of housing finance reform, lingering distrust among non-agency securitizers, lack of product and the trauma of heavy losses have stunted the growth of the market. The lack of reform of the government-sponsored enterprises should not become...
The Obama administration is asking Congress for authority to charge FHA lenders an “administrative fee” to help pay for improvements to the FHA quality assurance program. FHA wants to build a new quality assurance framework that will provide lenders more clarity about the agency’s expectations regarding the loan production process, said FHA Commissioner Carol Galante during a media briefing on provisions in the administration’s fiscal 2015 budget proposal that affect the Department of Housing and Urban Development. The idea is...
The Department of Justice is investigating PNC Financial Services Group and Bank of America in connection with their FHA-related mortgage lending practices, the two financial institutions disclosed in filings with the Securities and Exchange Commission. PNC said it has received subpoenas from the U.S. Attorney’s Office for the Southern District of New York seeking information relating to National City Bank’s lending practices in connection with FHA-insured loans as well as the origination of non-FHA loans and their sale and securitization. Another subpoena was issued...
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