Last week, SunTrust and PNC separately disclosed they are being investigated by agencies of the federal government over some of their mortgage practices as the drive continues to bring enforcement actions in the wake of the financial crisis. For SunTrust, the U.S. government is probing whether it properly processed borrowers’ loan-modification applications under the Home Affordable Modification Program. SunTrust Mortgage “has been cooperating...
After more than five years of operation, Home Affordable Refinance Program activity is expected to decline. However, industry analysts suggest that if the Federal Housing Finance Agency continues to implement changes requested by lenders, HARP activity could remain strong through 2014. “This deep cooperation and aggressive policy action are key reasons why HARP burnout has been elusive so far and suggests HARP risk is likely to remain elevated despite the interest rate sell-off, in our view,” analysts at Barclays Capital said late last week. Analysts at Bank of America Merrill Lynch project...
According to a new letter obtained by Inside Mortgage Finance, HUD says it is uncertain whether any new loan created under the controversial eminent domain plan would qualify for FHA insurance.
The guidance, effective October 15, applies to manually underwritten FHA loans and requires lenders to document reasons for approving a mortgage when the borrower has collection accounts or judgments.
The three government MBS agencies issued $144.26 billion of single-family MBS last month, down 3 percent from June’s level. It was the lowest monthly production level so far in 2013.
The question of whether the FHA should allow the refinancing of underwater mortgages seized through eminent domain has reemerged as a key issue following a recent decision by the city of Richmond, CA, to use its authority to take over distressed mortgages for restructuring. There is a new twist to the question, however. Could FHA’s refusal to refinance such mortgages be deemed discriminatory against cities and homeowners if eminent domain programs meet the requirements of the FHA Short Refinance program? Is that tantamount to redlining? A top executive of Mortgage Resolution Partners, which developed the eminent domain strategy to help underwater homeowners at risk of foreclosure, said ...
PNC Financial Services Group is under federal investigation regarding claims on expenses it incurred in connection with the foreclosure of loans insured or guaranteed by the FHA, Fannie Mae or Freddie Mac. In a recent filing with the Securities and Exchange Commission, PNC disclosed a subpoena from the U.S. Attorney’s Office for the Southern District of New York seeking documents related to the foreclosures. PNC said the inquiry is in its early stage and that ...
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