Many condominium properties continue to struggle to meet stringent FHA requirements while many condo projects are being denied approval despite the easing of FHA approval requirements in recent years. Panelists at a recent National Association of Realtors conference in New Orleans said condos are often the most affordable homeownership option for first-time homebuyers, single borrowers and senior citizens, especially when purchased with FHA financing. Condominium loans are among the strongest performing loans in the FHA portfolio, they added. However, FHA data show that ...

Imprecise rules, triple-damage claims and increasingly political enforcement of agency rules could make it more dangerous for lenders to do business with the FHA than to originate non-qualified mortgage loans, according to a top compliance expert. Larry Platt, a partner with K&L Gates, said that when lenders originate and underwrite FHA loans they are subjected to rules that are unevenly applied and politically enforced. It is a prescription for a financial bloodbath, especially if you add to it the False Claims Act and the Financial Institutions Reform, Recovery and Enforcement Act, he added. Throwing the Department of Justice into the mix ...

The Department of Veterans Affairs has provided VA lenders a table for determining the appropriate and maximum cost of legal services for each preferred method for foreclosing in judicial and non-judicial states. Specifically, the table concerns the maximum attorney fees the VA will allow in calculating the payment of loan guaranty claims upon termination of the VA loan. It reflects the amounts the VA has determined to be reasonable and customary for all states, following an annual review of amounts allowed by other government-related home loan programs. Every year, the VA ...

The sudden, dramatic increase in flood insurance premiums – some by as much as 1,000 percent – are leaving homeowners and prospective homebuyers stunned.

Fannie Mae and Freddie Mac are designing a securitization framework that will work for today’s fully-guaranteed residential MBS as well as securities with a partial government guaranty or none at all, according to an update released this week by the Federal Housing Finance Agency. Among the initiatives set for the government-sponsored enterprises by the FHFA is the development of a contractual and disclosure framework designed to give MBS investors more clarity and confidence about what they’re…

Elsewhere, in the report FHFA claims significant progress has been made on the development and initial testing of the GSEs’ common securitization platform.

Meanwhile, a new report from Compass Point Research is predicting that the FHFA will establish a final risk-to-capital threshold for MIs of 18:1.

“Watt will not lower the ceiling for 2014,” said one mortgage insurance executive. “Maybe, he will change them at some point but, not next year.”

HUD has been steadily auctioning off nonperforming mortgages the past few months. Sources in the market disclosed to IMFnews who some of the winning bidders are. They include: Credit Suisse, Ellington, Kondaur, PIMCO and Varde.

In letters to two government agencies, a group of 10 Democrat lawmakers said the FHFA should continue to provide access to government-sponsored enterprise MBS guaranties and the Department of Housing and Urban Development should allow FHA mortgage insurance in such communities.