The revised defect taxonomy will hardly nudge banks to return to or increase participation in FHA programs despite tighter standards for identifying and curing defective loans, according to industry stakeholders.
In 2020, FHA is poised to take a significant chunk of high-risk business as Fannie and Freddie continue to draw back from the over-95% LTV market. VA is expected to continue its slow-growth trajectory.
Four industry groups expressed support for FHA changes addressing False Claims Act liability and urged HUD to adopt as quickly as possible FHA’s revised loan-level certification.
Home Equity Conversion Mortgage originations fell in the third quarter de-spite a buoyant housing market. FHA policy changes continue to dampen buyer enthusiasm for the product. (Includes two data charts.)
New York Governor Andrew Cuomo signed into law a bill prohibiting deceptive advertising and marketing of Home Equity Conversion Mortgage loans. The law takes effect March 5, 2020.
Borrower demand for FHA-insured loans was strong in the third quarter due to low interest rates. Not surprisingly, refinance activity, streamline refinancing in particular, provided the boost.
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