The Department of Housing and Urban Development has launched a new web-based mapping tool displaying the location of all foreclosed properties being held by Fannie Mae, Freddie Mac and the FHA, which is almost half of all real estate-owned or REO properties in the U.S. HUD said its REO Portal is intended to help local communities, homebuyers and responsible investors to acquire these properties and accelerate efforts to stabilize local housing markets. …

Standard & Poor’s and Fitch Ratings have raised concerns about the proposed risk-retention rule that has sparked an outcry among MBS issuers, but the rating services appear to be taking a more measured view – in fact, S&P says it may be good for the market’s long-term health. In a recent report, S&P agreed with the industry consensus that the proposed rule won’t help the housing market and non-agency MBS sector right now. But the new standard for securitization, which sets a high bar for qualified residential mortgages that would be exempt from a ...

The recent rancorous debate over raising the debt ceiling brings little hope of relief from the overwhelming amount of regulation coming down the pike. Analysts say the uncertainty has made it more difficult to quantify risks for MBS and other securitized products. Analysts at Bank of America/Merrill Lynch said the outcome of the debate was far worse than expected, forcing them to temper their optimism for securitized products. Instead, they are calling for a more neutral exposure. “The pragmatism we thought we would see never really emerged,” said Chris Flanagan, an analyst with the firm. “Instead ...

Rules proposed by federal regulators to establish “qualified mortgage” and ability-to-repay standards would severely limit the originations of alternative mortgages, including certain ARMs, according to lenders. Consumer advocates, meanwhile, are calling for even more restrictive underwriting standards than those proposed by the Federal Reserve. In April, the Fed proposed strong ability-to-repay requirements that expand upon existing rules for higher-priced mortgages, include stringent penalties for violations, and would apply to ...

Small FHA-approved lenders no longer have to submit audited financial statements to the Department of Housing and Urban Development in order to be approved or renewed for FHA programs, according to new guidelines issued July 28. Under Mortgagee Letter 2011-25, small supervised lenders regulated by the Federal Deposit Insurance Corp., National Credit Union Administration or the Office of the Comptroller of the Currency are exempt from current regulation requiring all FHA lenders to submit annual audited financial statements as a condition for their approval or continued participation in FHA programs. Currently, the regulation applies to...

Like many industry commenters, consumer groups are urging federal regulators to lighten up on what has been largely regarded as an overly-restrictive definition of “qualified residential mortgages” that will get preferential treatment in future mortgage securitizations. The interagency risk-retention proposed rule would limit QRM status to purchase mortgages with a minimum 20 percent downpayment and conservative underwriting standards on debt-to-income ratio and credit history. The proposed QRM rule will “further slow the process of clearing ...

More than 57,000 delinquent borrowers are expected to benefit – if they can be found – from a recent settlement between Bank of America and the Department of Housing and Urban Development, resolving agency concerns about the bank’s failure to offer loss mitigation options to FHA borrowers. The previously undisclosed settlement, which was confirmed by HUD officials, requires Bank of America to set aside a minimum of $10 million to pay down arrearages for FHA borrowers who are 12 months delinquent and qualify for a partial claim, a forbearance plan, a traditional modification ...

Major MBS issuers are concerned about the potential harm evolving risk-retention regulations could have on securitization structures, regardless of which structure issuers decide to use. In response to the interagency proposed rule on credit risk retention, Citigroup said the public interest is not served by requiring securitizers to hold positions that are designed to take losses. “For example, all deal parties, the rating agencies and the investors are fully aware that the lowest tranche, sometimes referred to as a ‘first loss’ tranche, may take losses and no representation is made that such tranche is either investment grade or will receive...