Regions Financial Corp., a $125 billion Alabama bank, has reached a preliminary settlement with the Department of Justice and the Department of Housing and Urban Development to resolve an investigation into the bank’s FHA lending practices. The reason for the investigation was not disclosed in the bank’s 10-Q filing, although Regions acknowledged that DOJ and the HUD inspector general are focusing on its FHA loan origination procedures, underwriting and ...

The Department of Veterans Affairs has issued new guidance to clarify the loan-fee structure for VA purchase and refinance mortgages, loan assumptions and manufactured home loans. The detailed funding fees are in effect for VA loans closed on or after Nov. 22, 2011, and before Sept. 30, 2024. For first-time use of the VA housing benefit, a VA loan with a downpayment of less than 5 percent would have a funding fee of 2.15 percent for veterans and 2.40 percent for reservists ...

The Department of Housing and Urban Development is seeking comment on a supplemental proposal, which would require an FHA lender to file a claim when a Home Equity Conversion Mortgage loan reaches 98 percent of the maximum claim amount. The proposal stems from another proposed rule published by HUD last May that would codify previous revisions to the HECM program and make additional changes. The proposal would provide the lender an opportunity ...

The Department of Housing and Urban Development’s inspector general has urged the agency to direct FHA lenders to show documented proof that properties in Flint, MI, had a safe and potable water source at the time their FHA loans were closed and endorsed, or face indemnification. The HUD IG, in a report, said it audited the department’s oversight of FHA-insured loans in Flint in the wake of news reports of high levels of lead contamination in the city’s public water system ...

The FHA’s and VA’s acceptance of residential properties with existing senior PACE (Property Assessed Clean Energy) liens is credit positive for asset-backed securities backed by PACE assessments and could have a mixed effect on some residential mortgage-backed securities, according to a new analysis by Moody’s Investors Services. The move is expected to expand the availability of mortgage financing for purchasers of homes with PACE obligations as well as ...

Despite quickening refinance activity, the FHA single-family market soared over the $1 trillion mark in loans pooled in Ginnie Mae mortgage-backed securities during the second quarter of 2016, according to a new Inside FHA/VA Lending analysis. A record $1.001 trillion of FHA single-family loans made up the lion’s share of collateral backing Ginnie MBS as of the end of June. That was a 1.3 percent increase from the previous quarter and a 5.5 percent gain from the midway point in 2015. Steady growth in FHA loans helped push Ginnie single-family MBS to $1.576 trillion outstanding, topping Freddie Mac for second place in the agency market. The VA loan guaranty program was still the fastest-growing corner of the government-insured market, with total VA loans in Ginnie pools up 3.8 percent from March and 16.7 percent higher than a year ago. The actual amount of FHA and VA loans outstanding is somewhat ... [ 4 charts ]

Senate legislation that would make it easier to obtain FHA financing for condominium projects has been sent to the president for signature, though lenders seem to be more eager for long-anticipated condo reform guidelines from the Department of Housing and Urban Development. Senate lawmakers unanimously approved H.R. 3700, the “Housing Opportunity through Modernization Act,” before Congress retired for the August recess. The bill passed in the House of Representatives by a vote of 427-0 back in February. Industry observers said the bill would essentially codify FHA condo-financing guidelines, which HUD recently drafted and are currently undergoing clearance at the Office of Management and Budget. Under H.R. 3700, the FHA would be required to establish and implement a recertification process that is substantially less burdensome than the ...

CIT Group this week revealed that it was shoring up loss reserves tied to a reverse mortgage servicing operation it absorbed as part of its acquisition of OneWest Bank and its parent holding company, IMB HoldCo., last August. The loss of $167 million in discontinued operations relates to Financial Freedom, a reverse mortgage servicing subsidiary of OneWest Bank, which CIT shut down in December last year. In an earlier filing with the Securities and Exchange Commission, CIT management identified a material weakness in Financial Freedom related to estimates of the interest-curtailment reserve in its Home Equity Conversion Mortgage portfolio. The flawed estimates apparently have resulted in a material misstatement of CIT’s consolidated financial statements. Due to a change in estimates, and taking into consideration an investigation being conducted by the ...

We pick up where we left off last issue with the Department of Veterans Affairs attempting to clarify certain guidance in the VA Lender Handbook. ? If the TRID (Truth in Lending/Real Estate Settlement Procedures Act Integrated Disclosures) closing disclosures change after the veteran signs [the form], should the lender require the veteran to sign it again? VA: The short answer is yes. The lender is required to provide the TRID closing disclosure no later than three business days before consummation. The lender is required to provide a corrected closing disclosure to the borrower three days before consummation or closing in certain instances, and at or before consummation if other types of changes occur, such as adjustment of costs or credits. Therefore, any changes made that require an amended disclosure must have the borrower’s signature. ? Is the Amendatory Clause mandatory for all ...

USMI Names MGIC Chief as Chairman. U.S. Mortgage Insurance has tapped Patrick Sinks, chief executive of MGIC Investment Corp., to be the trade group’s new chairman. Sinks succeeds USMI Chairman Rohit Gupta, president and CEO of Genworth Mortgage Insurance. Sinks served previously as USMI’s vice chairman. Bradley Shuster, chairman/chief executive for NMI Holdings, will take overNew Reverse-Mortgage Product. California Mortgage Advisors has expanded its reverse-mortgage menu, with the addition of a non-FHA reverse mortgage option of up to $6 million for select clients. With the new product, CMA joins a handful of private reverse-mortgage lenders that will consider properties valued up to $6 million. Last year, American Advisors Group, the largest Home Equity Conversion Mortgage lender, announced its AAG Advantage lending program, which features the ...