The Department of Housing and Urban Development has updated its lender requirements for preforeclosure sale (short sale) and deed-in-lieu of foreclosure for implementation on Oct. 1 this year. The short sale or deed-in-lieu of foreclosure are the last options available to a distressed borrower if home-retention options, such as special forbearance, loan modification, partial claim, and FHA’s Home Affordable Modification Program are not successful. A short sale allows the borrower to avoid foreclosure by selling the home for less than the loan balance. The lender recovers the remainder from ...
Ginnie Mae servicers continued to experience modest increases in servicing outstanding while FHA servicers reported a slight increase in 30-to-60 day delinquencies, according to Inside FHA Lending’s analysis of the agencies’ servicing portfolios as of midyear 2013. As of June 30, Ginnie Mae’s total servicing outstanding was $1.4 trillion, an increase of 6.6 percent from last year and up 1.8 percent from the first quarter, reflecting improvements in government-backed loan originations due to a slowly recovering economy. Ginnie Mae servicing volume has been ... [2 charts]
HUD Hires Expert to Improve FHA Operations, Risk Management. The Department of Housing and Urban Development has announced Biniam Gebre as the new general deputy assistant secretary for the Office of Housing. He will be joining the FHA leadership team. Before joining HUD, Gebre served as a principal at global management consulting firm McKinsey & Co., where he led a company-wide, public-sector initiative to develop insights, tools and approaches for building capabilities in ...
FHA chief Carol Galante expressed concern about the absence of any provision in the bill that would ensure servicer accountability for their performance.
On average FHA took 340 days to sell REO properties based on dispositions from January 2008 through June 2012, compared to just over 200 days for Fannie, Freddie and VA.
It’s no secret that the market for nonperforming mortgages has improved nicely this year, but now there are signs of life in the “re-performing” sector as well, especially among investors that hope to package and securitize the notes. According to Jeana Curro, director of agency MBS strategy for Royal Bank of Scotland, the re-performing MBS market is small, “although not insignificant.” But getting a true handle on MBS backed by re-performing loans can be...
The Fed chief told elected officials that whatever housing finance reform plan they choose to replace Fannie Mae and Freddie Mac, it should be clear to private investors about the government’s role in the market.
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