Community mortgage lenders are asking the U.S. Senate to consider with caution before voting on legislative language passed recently by the House of Representatives to address “orphan” VA streamline refinance loans. Specifically, the Community Mortgage Lenders of America asked the Senate to step back and allow some time for substitute language to be presented with input from the industry and the Department of Veterans Affairs. At issue is the wording in H.R. 6737, the Protect Affordable Mortgages for Veterans Act of 2018. The bill fixes a technical issue that prevented VA lenders from pooling certain VA Interest Rate Reduction Refinance Loans in Ginnie Mae mortgage-backed securities pools. Approximately 2,500 VA refi loans were affected by an inconsistency between the loan seasoning guidelines issued by Ginnie in late 2016 and provisions in the ...
Mortgage lenders are urging the U.S. Department of Agriculture/Rural Housing Service to eliminate the current interest-rate cap on single-family USDA loans because it has long outlived its usefulness. RHS is reevaluating the interest-rate cap to determine whether it should be modified to allow borrowers who are ineligible for a conventional mortgage to obtain affordable financing for a home purchase, home rehabilitation or a streamline refinance. Lenders, however, argue that the cap is unrealistic under current market conditions. The agency is currently seeking comment on possible changes. Congress authorized RHS in 1990 to establish a maximum interest rate to help spur loan origination in eligible rural areas. The interest-rate cap is pegged to the current Fannie Mae posted yield for 90-day delivery plus 1 percent for 30-year fixed-rate conventional loans, rounded to the nearest quarter of ...
The Department of Veterans Affairs will begin a new rulemaking on qualified mortgages to conform to Dodd-Frank reform act mandates. Observers say the move is simply housekeeping, since the previous QM interim final rule (IFR) requirements were rendered moot with the enactment of the Economic Growth, Regulatory Relief, and Consumer Protection Act back in May. The new law, also known as the Dodd-Frank reform act, superseded the previous rule’s seasoning and recoupment requirements for VA Interest Rate Reduction Refinance Loans. Specifically, the act removed the category of rebuttable presumption for IRRRLs deemed as QM under the interim final rule. It also imposed new requirements that were not considered at the time the IFR was issued. The VA did not say whether changes were made ...
Outside counsel for nonbank lender Castle & Cooke Mortgage disputed several statements included in an Oct. 12 Inside Mortgage Finance article about the firm and one of its investors.
The Consumer Financial Protection Bureau will issue a new rule that clarifies what lending practices will be considered “abusive,” said Acting CFPB Director Mick Mulvaney, speaking at the annual convention of the Mortgage Bankers Association this week.
An affiliate of Annaly Capital Management is preparing to issue a $384 million mortgage-backed security stocked with non-qualified mortgages and loans for investment properties…
The three major credit reporting bureaus – Experian, Equifax and TransUnion – continued to rank first, second and third, respectively, in the number of complaints filed…
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