Senate Banking Committee Chairman Tim Johnson, D-SD, and Ranking Minority Member Mike Crapo, R-ID, have released a draft FHA solvency bill that is far less ambitious than legislation proposed by House GOP leaders last week. The Senate bill, the FHA Solvency Act of 2013, would essentially shore up the existing FHA program by allowing higher mortgage insurance premiums and requiring a bigger capital buffer. The housing finance reform bill introduced by Rep. Jeb Hensarling, R-TX, chairman of the House Financial Services Committee, would significantly change the FHA program by narrowing its focus and limiting the depth of coverage it provides. The draft Senate bill contains...

Compliance experts are urging FHA lenders to express their concerns about a potential new enforcement regime the Department of Housing and Urban Development has proposed that could raise the risks of doing business with the FHA. The HUD proposal, which was published as a notice in the Federal Register with a comment deadline of Sept. 9, seeks comment on measures that would further enhance quality assurance in origination, underwriting and servicing. HUD has routinely used quality assurance methods, including routine and targeted audits, post-endorsement loan reviews and monitoring of early default and claim rates to evaluate lender compliance. Attorneys with K&L Gates cautioned...

The Federal Housing Finance Agency should coordinate with the FHA to establish a formal working group to permit both agencies to raise guaranty fees and insurance premiums as a way to reduce the federal government’s role in the mortgage-guaranty business, the FHFA’s official watchdog has recommended. The FHFA firmly disagrees. A new report by the FHFA’s Office of Inspector General this week noted “potential benefits” that the FHFA may achieve by establishing a “more formalized working arrangement” with the FHA and “jointly assessing the key issues around their pricing initiatives.” The Treasury Department made...

Banks have a strong track record on obtaining Ginnie Mae approvals, nonbanks not so much.

Wells Fargo, the nation's large home funder, accounted for almost 31 percent of total Ginnie Mae issuance during the first half of 2013.

Among other things, the bill would allow FHA to make changes to the reverse mortgage program by mortgagee letter rather than legislation.

Some Ginnie Mae investors, however, have voiced concern about the MBS conversion process, particularly its costs.

Fannie Mae and Freddie Mac both saw production slow during the second quarter, by 7 percent and 2 percent, respectively.

Hedge funds continue to salivate over mortgage servicing rights. Meanwhile, the Hensarling GSE bill goes down like a Led Zeppelin.

The Republican leadership of the House Financial Services Committee this week unveiled a comprehensive housing finance reform bill, including a series of proposals to “right size” the FHA, redefine its mission and reestablish it as a stand-alone agency. At the same time, Senate Banking Committee Chairman Tim Johnson, D-SD, and Ranking Member Mike Crapo, R-ID, announced they have reached a bipartisan agreement on legislation that would ensure the solvency of the FHA. Both lawmakers expect to introduce a bill next week. The House FHA reform measures were introduced in tandem with reform proposals for ...