The Department of Housing and Urban Development is finalizing proposed guidelines streamlining reporting requirements for small FHA-approved lenders. Under the proposed guidelines, federally supervised, FHA-approved lenders with under $500 million in total assets would have alternative requirements for reporting their financial condition. FHA lenders are currently required to submit audited financial statements as a condition for FHA lender approval or renewal. In lieu of an audited financial statement, the proposed rule would require smaller supervised lenders to submit a copy of the unaudited regulatory report they provide ...
The Department of Housing and Urban Development is increasing its focus on tighter underwriting with actions against pregnancy discrimination in home mortgages. The department recently charged Mortgage Guaranty Insurance Corp., PNC Mortgage and others for allegedly refusing to provide mortgage insurance on a Pennsylvania loan unless the borrower returned to work from maternity leave. The FHA requires approved lenders to review a borrowers income to determine his or her ability to repay the mortgage. However, lenders are prohibited from inquiring about future maternity leave. According to HUDs complaint, MGIC notified ...
Wells Fargo, the biggest originator of Home Equity Conversion Mortgage loans, is exiting the reverse mortgage market after 20 years due to the unpredictability of property values. The departure of the San Francisco-based lender is another major blow to the wobbly HECM market already weakened by plummeting home prices. In February, Bank of America, the second largest HECM producer, announced it was quitting the reverse mortgage market to focus on other lines of business. The two institutions showed a combined ... [includes one data chart and one graph]
Ginnie Mae has raised the servicing fee compensation for its Home Equity Conversion Mortgage-Backed Securities (HMBS) program. Currently issuers receive either a flat 6-to-75 basis points monthly servicing fee or a 25-75 bps servicing fee based on a portion of the mortgage interest rate. Effective for HMBS with an issue date on or after July 1, 2011, issuers must select a servicing fee margin of at least 36 bps and not exceeding ...
As the FHAs capital reserve level dwindled in 2009 and the programs share of the mortgage market gradually rose, Department of Housing and Urban Development officials repeatedly stated that ridding the program of bad lenders was...[Includes one graph]
Private mortgage insurers have been slowly staging a comeback, taking market share from the FHA over the past year. With the annual premium on FHA loans increasing Monday, several private MIs look to be turning up the heat. As of early this week, FHA mortgages with loan-to-value ratios at or below 95 percent will carry...
On the heels of an AARP lawsuit against the Department of Housing and Urban Development relating to recent rule changes to the FHAs reverse mortgage program, two House Democrats asked the agency to revisit its policies on borrowers surviving spouses. Longstanding HUD rules dating back to 1989 say...
The Department of Housing and Urban Development complied with all rules and regulations in implementing the FHAs version of the Home Affordable Modification Program but could have improved in certain early stages in the life of an FHA-HAMP loan, according to a recent report from HUDs Office of the Inspector General. The FHA-HAMP combines...
The rate of delinquent FHA loans has yo-yoed up over the past year as the program tries to improve underwriting and FHA servicers portfolios continue to grow. The Neighborhood Watch database, which counts loans in any stage of delinquency, shows...[Includes one data chart]
FHA lenders with less than $500 million in assets will not have to comply with FHA rules requiring audited fiscal statements each year, a Department of Housing and Urban Development spokesman told Inside FHA Lending this week. The waiver, which will be implemented...