The next action on risk-retention standards required by the Dodd-Frank Act could be more than a year away, according to agendas recently released by federal regulators. Meanwhile, new disclosure requirements for MBS and ABS could be released soon by the Securities and Exchange Commission. Federal regulators listed risk-retention requirements as a “long-term action” on their fall regulatory agendas, with no indication of when the next action will be taken or what that action might be. The comment period on a revised proposal for risk-retention requirements closed...

“There has been significant industry confusion concerning the extent to which affiliate fees are included in the points-and-fees calculation, particularly when only a portion of a fee is retained by an affiliate,” the Mortgage Bankers Association said.

From what we understand, some GSE employees with MBS backgrounds are eagerly volunteering their services to the CSS project, believing that the “end product,” the MBS, is where the future lies.

Fraud among jumbo borrowers is increasing, particularly regarding employment and income, according to industry analysts who say lenders should pay particular attention to fraud on loan characteristics that factor into qualified mortgage requirements and new ability-to-repay standards. “In high-cost markets, people tend to be willing to fudge a little bit on their income,” said Ann Fulmer, a vice president of industry affairs at Interthinx, during a webinar hosted this week by the provider of fraud-mitigation services ...

Federal regulators this week issued a final rule regarding appraisals for higher-priced mortgages as required by the Dodd-Frank Act. The rule is the latest in a long line of DFA-related requirements that will have an impact on the non-agency market. The final rule issued this week exempts three classes of higher-priced mortgages from appraisal requirements: certain streamlined refinances, some transactions secured by manufactured homes and transactions of $25,000 or less. Higher-priced mortgages ...

Severe decreases in the FHA loan limits in numerous counties across the country have spurred industry demand for the Department of Housing and Urban Development to disclose the methodology and process it used to determine the new loan limits. Although HUD’s announcement of lower FHA loan limits for 2014 had been long expected, mortgage industry participants were caught off guard by the substantial reductions in FHA loan limits caused by the statutory change in how the limits are calculated and by revised median house prices. For 2014, HUD announced that the national ceiling limit for single-family mortgages in high-cost areas would decline to ... [1 chart]

Policy changes implemented since 2009 appear to be having a positive impact on the FHA Mutual Mortgage Insurance Fund, which is still $1.3 billion in the red, but its net worth grew $15 billion over last year’s estimate, according to the latest independent actuarial audit of the FHA fund. The MMI Fund’s economic value improved from negative $16.3 billion last year to negative $1.3 billion. Its capital reserve ratio, which has been a cause of disagreement among lawmakers and industry players, also rose from negative ...

With one week left on Congress’ calendar year, Senate approval of S. 1376, the FHA Solvency Act of 2013, before the end of 2013 is becoming more unlikely, according to lobbyists. The bill is stalled and is unlikely to be brought to the floor any time soon. If the housing sector continues to improve, the government-sponsored enterprises continue to generate profit and the FHA’s newer books of business continue to perform well, passing GSE or FHA reform legislation next year would be an uphill battle, lobbyists said. The Congressional Budget Office estimates that implementing S. 1376 would result in ...

The Department of Housing and Urban Development has released a final rule defining a “qualified mortgage” that is insured by the FHA. The final rule will be effective on Jan. 10, 2014. The HUD rule builds off the QM/Ability-to-Repay rule, which the Consumer Financial Protection Bureau finalized earlier this year. The Dodd-Frank Act requires HUD to propose a QM definition that is aligned with the ability-to-repay criteria set out in the Truth in Lending Act and with the agency’s mission to ...

Lenders will need to order a new appraisal for an FHA-insured real estate-owned property if the current REO appraisal is defective or an adverse condition exists that requires a new assessment of the property, according to the Department of Housing and Urban Development. The requirement is one of several that HUD spelled out recently in Mortgagee Letter 2013-44. The mortgagee letter includes changes to HUD’s policies on the use of an FHA-insured mortgage in the purchase of HUD REO properties and the use of distressed properties in ...