Fannie Mae remains on track to securitize $30 billion in multifamily loans this year, compared with nearly $34 billion in 2012, which would meet the FHFA scorecard target.
A Manhattan federal judge last week rebuffed a motion by a number of major lenders to dismiss a bid by the Federal Deposit Insurance Corp. against the firms in connection with $388 million of non-agency MBS sold to the now-defunct Colonial Bank. The FDIC filed its complaint in August 2012, alleging that the defendants – including JPMorgan, CitiGroup, Ally Securities, First Horizon, Credit Suisse, Deutsche Bank, Merrill Lynch and Wells Fargo – placed poor-quality loans in the 11 underlying residential MBS and then misled investors by marking them as safe investments. Montgomery, AL-based Colonial Bank failed...
Fannie Mae plans to issue a $675 million risk-sharing securitization in a transaction that likely will hit the market by mid-October, according to potential investors who were briefed on the government-sponsored enterprise’s plans. Market participants said Fannie has contemplated issuing two such transactions by year-end, but the company isn’t talking about specifics, at least not yet. Still, the GSE is laying...
While the Consumer Financial Protection Bureau has encouraged originations of non-qualified mortgages, industry analysts predict that such originations will begin slowly. Even before the QM and risk-retention requirements are implemented for non-qualified residential mortgages, few lenders have been willing to offer subprime mortgages. Originations of subprime mortgages will likely be non-QMs due to the higher interestrates required for subprime borrowers. According to a survey completed by Zillow, borrowers with credit scores under 620 who requested a quote for a 30-year fixed-rate mortgage were...
Higher-priced mortgages accounted for a scant 1.0 percent of loan sales in 2012, according to an Inside Nonconforming Markets analysis of data from the Home Mortgage Disclosure Act. Originations of higher-priced mortgages increased slightly compared with 2011 but the growth didn’t keep up with the increase in overall originations. Higher-priced first liens have an annual percentage rate at least 1.5 percentage points above the average prime offer rate. Federal regulators use the metric as a proxy for subprime mortgages. Some $15.80 billion in higher-priced mortgages were sold...[Includes one data chart]
A year and a half after the $25 billion national servicing settlement took effect, attorneys general and the settlement’s monitor turned up the heat this week on the five banks participating in the settlement. Wells Fargo faces a new lawsuit, Bank of America settled similar claims, and all five servicers face additional testing standards and procedures, with BofA and Wells agreeing to even more stringent process improvements. New York Attorney General Eric Schneiderman, D, announced a lawsuit against Wells. He said consumer advocates have documented hundreds of violations to the settlement by Wells, including delays, lost paperwork and wrongful denials. BofA avoided...
Esoteric accounting rules, statutory loss reserves requirements and declining loan production have compelled the FHA to take a mandatory draw of approximately $1.7 billion from the Treasury even though it has plenty of cash to cover potential losses. While the agency had significant liquid assets for its forward loan portfolio, it would be required to boost reserves for its Home Equity Conversion Mortgage program to cover all expected future losses for the next 30 years, FHA Commissioner Carol Galante explained in a letter to Senate Banking Committee leaders. The announced draw became ...
The Department of Housing and Urban Development this week proposed its own “qualified mortgage” rule for FHA-insured mortgage loans that builds off the existing QM rule finalized by the Consumer Financial Protection Bureau earlier this year. The proposed rule aligns with the ability-to-repay criteria in the Truth in Lending Act as required by the Dodd-Frank Act. Once the proposal becomes final and takes effect, it would replace the CFPB’s rule for FHA loans. The DFA has set a seven-year timetable for FHA, the VA and the Rural Housing Service to promulgate their own QM rules. HUD’s proposed QM rule would ...
The FHA was still able to endorse single-family mortgage loans during the first week of the partial government shutdown, although no FHA staff were available to underwrite and approve loans. A significant delay in the processing of new FHA insurance applications might have occurred this week because only 64 employees are still at work in HUD’s Office of Housing, which includes the FHA. HUD said it might need more essential employees per day, on an intermittent basis, to perform key activities. The department expects these calls for reinforcement to ...
RSS