Lenders continue to be hit with steep False Claims Act penalties despite assurances by Housing and Urban Development Secretary Ben Carson that he would address the FCA issue.
The Department of Housing and Urban Affairs plans to act on two new rules in 2018 relating to allowable fees and charges on VA loans as well as the type of loans that are “qualified mortgages.”
FHFA's Mel Watt: "While it is apparent that a draw will be necessary for each enterprise if tax legislation results in a reduction to the corporate tax rate, FHFA considers the $3 billion capital reserve sufficient to cover other fluctuations in income in the normal course of each Enterprise’s business.”
Mel Watt continued: “We, therefore, contemplate that going forward enterprise dividends will be declared and paid beyond the $3 billion capital reserve in the absence of exigent circumstances.”
Beginning in tax year 2018, a deduction won’t be allowed for interest paid on home-equity loans unless proceeds from the loan are used to improve the residence…
The FHFA noted that if another credit scoring model is introduced, the entire mortgage finance industry will incur increased operation and transition costs…
The U.S. Court of Appeals for the Seventh Circuit has joined four other circuits in raising the bar for arguing government cases under the federal False Claims Act, potentially making it harder for the government or whistleblowers to pursue such claims against FHA lenders.
State regulators are increasingly requiring investors in mortgage servicing rights to get servicer li-censes even if they don’t perform any loan administration functions, according to industry lawyers.
New York financial services regulators have ordered PHH Mortgage to pay $119,000 in penalties for failing to maintain a vacant and abandoned property in violation of state’s “zombie” foreclosure law.
Washington Analysis believes the FHFA/Treasury move is a “clear positive for shareholders in the GSEs, particularly holders of junior preferred shares..."
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