State housing agencies have expressed support for a proposed rule change by the U.S. Department of Agriculture’s Rural Housing Service that would expedite claim submission, but sought clarification on certain provisions. The proposed rule would amend the USDA’s current rules on liquidation-value appraisals under the agency’s Section 502 Single Family Housing Guaranteed Loan Program. Currently, if a real estate-owned property remains unsold by the lender at the end of a prescribed marketing period, the RHS will order a liquidation value appraisal to estimate the cost of holding and disposing of the REO. However, several housing finance agencies have complained about the RHS’ lengthy claims process, which forces them and other lenders to keep unpaid claims on their books longer than necessary. “Such lengthy waiting periods can be particularly costly to HFAs and other ...
VA Servicer Reminders. The new maximum allowable foreclosure timeframes published in the Federal Register on Dec. 4, 2015, will be effective for all loan terminations completed on or after Jan. 3, 2016. In addition, the new Net Value percentage (15.95 percent) took effect on Dec. 23, 2015. All Notices of Value issued on or after Dec. 23, must be calculated using the new percentage. Meanwhile, pre-approval requests to deviate from a regulation must be submitted through VALERI (VA Loan Electronic Reporting Interface), the agency’s loan administration system. VA does not grant pre-approval on claim expenses or for additional time to foreclose. These items must be appealed ...
In 2015, the two GSEs sold credit risk on about $407 billion of UPB through their back-end risk-transfer programs. The actual amount of credit risk transferred was $12.6 billion.
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