Senate appropriators have opted to set aside fiscal 2017 funding for FHA information technology upgrades rather than authorize the agency to charge lenders an administrative fee to pay for improvements. The committee approved the funding as part of its proposed Housing and Urban Development-Transportation budget for FY 2017. Appropriators set aside $13 million in specific funds for FHA IT improvements. HUD proposed that up to $30 million in fees would be charged to lenders on endorsements through Sept. 30, 2019. Collections from such fees would be credited as offsetting collections to the Mutual Mortgage Insurance Fund. Specifically, HUD sought to use the collections to partially offset a requested $160 million funding for improvements to administrative contract support, FHA staffing and information technology. Congress has rejected the ...
The Department of Veterans Affairs has called upon holders of VA-guaranteed single-family mortgage loans to extend forbearance to distressed homeowners affected by the severe storms and flooding in Louisiana and Texas. In recent guidance, the VA described measures VA lenders may employ to provide relief to disaster-stricken homeowners. The agency recommended careful counseling to see whether borrower difficulties are related to the storms or have been the result of other events. If appropriate, prepayments may be reapplied to cure or prevent a borrower default. Servicers also may consider loan modification without VA’s prior approval if certain regulatory conditions are met. Although the holder of the loan is ultimately responsible for determining when to initiate foreclosure or complete termination action, the VA has requested a 90-day freeze on ...
The Association of Mortgage Professionals, which represents mortgage brokers, said it believes the measure will dilute states’ rights to protect consumers.
After months of public and private criticism and pressure – and perhaps some behind-the-scenes button holing – the Consumer Financial Protection Bureau has decided to yield to the clamoring about its integrated disclosure rule and come out with another rulemaking perhaps as early as late July that will provide “greater certainty and clarity.” Late last week, in a letter to various industry trade groups, CFPB Director Richard Cordray acknowledged that the implementation of the TRID rule poses many operational challenges and is “particularly challenging because of the diversity of the participants” in the industry. He also said...
Like the rest of the industry, the small but growing nonprime sector has struggled with the integrated disclosure rule known as TRID, but for the most part such lenders have adjusted and are now seeing a noticeable increase in both applications and production. At least that’s the view of two of the largest players in the market: Angel Oak Mortgage Solutions, Atlanta, and Citadel Servicing Corp., Irvine, CA. Each firm now expects to fund between $800 million and $850 million this year. They did...
Lenders and mortgage brokers are at odds over a House bill that would make it easier for loan originators to leave jobs at depository institutions and go to work for nonbank lenders. The Mortgage Bankers Association is pushing for a vote in the House on H.R. 2121, the SAFE Transitional Licensing Act of 2015. The bill was approved by the House Financial Services Committee in March on a 56-0 vote. The unanimous bipartisan support for the bill was fairly rare and suggested strong prospects for the legislation to move forward. However, a vote in the House has yet...
The rising role of nonbanks in the Home Affordable Modification Program along with a perceived lack of oversight has a HAMP watchdog calling for greater regulation of nonbank servicers. Nonbank servicers currently handle the majority of loans in HAMP, a shift from the early years of the federal program when the majority of mortgages were serviced by large banks. In a report released last week, the Special Inspector General for the Troubled Asset Relief Program noted...
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