More than half of FHA-insured loans analyzed for material defects have been mitigated over a 12-month period, according to the Department of Housing and Urban Development’s latest quarterly loan-review analysis. Approximately 31,396 loans were analyzed over four quarters for possible defects, beginning in the third quarter of 2017 and ending the second quarter of 2018. Approximately 59.8 percent of the reviewed loans were initially deemed unacceptable. HUD data showed that most, 54.1 percent, of the loans reviewed have been successfully mitigated. The report provides a quarter-by-quarter snapshot of the FHA’s Loan Review System results. Net defects represent outcomes after lenders have implemented methods and techniques to mitigate or remediate the initial findings. Of the reviewed loans, 24.7 percent were conforming while 15.5 percent were found to be deficient. About 0.2 percent of loans were ...

The U.S. District Court for the Southern District of Iowa earlier this month granted preliminary approval of an $11.2 million settlement in a proposed class-action against national bank JPMorgan Chase. According to the complaint filed in 2016, Chase charged and collected interest on FHA-insured loans that paid off early. Chase was either the lender or the servicer of the loans. The lawsuit, Audino et al. v. JPMorgan Chase Bank, alleges that the bank breached the promissory notes underlying the class’s FHA-insured home loans when it collected post-payment interest without providing disclosures to borrowers who made a prepayment inquiry, request for payoff figures, or tender of prepayment. Plaintiffs allege that the bank did not use the proper FHA form to provide the disclosures to consumers. Chase denies any wrongdoing and neither admits nor concedes any actual or potential fault or liability. The bank also denies it was ...

Federal regulators should separate capital standards for banks from accounting standards, according to the Structured Finance Industry Group. Such a maneuver would likely allow banks to issue risk-sharing transactions similar to deals in recent years from Fannie Mae and Freddie Mac.

It could take states 18 months to implement the transitional license regime, according to MBA’s Pete Mills…

As for what might be in the Hensarling bill, the conservative from the Lone Star state wasn’t offering…

Moves by three issuers of prime non-agency mortgage-backed securities to allow for third-party due diligence reviews to be completed on fewer than 100 percent of the loans in an MBS could increase the risk of losses for MBS investors, according to Moody’s Investors Service. In a report released this week, Moody’s said narrower due diligence reviews increase the likelihood of defective loans appearing in non-agency MBS. The rating service added that representations ... [Includes five briefs]

According to the newspaper, Watt – a former Democratic Congressman from North Carolina – is under investigation for alleged sexual harassment of an employee.

The revised definition excludes from points-and-fees any compensation included in the interest rate…

After months of gathering and reviewing comments on credit-scoring options, the Federal Housing Finance Agency abruptly called off its plan to announce new guidelines for Fannie Mae and Freddie Mac by the end of this year. The two major credit-score providers aren’t happy with the news.

The Mortgage Bankers Association has met with state regulators in an effort to speed implementation of transitional licenses for loan originators who move from banks to nonbanks or to a new state.