According to industry sources, UGI wanted the new trade association to operate on the principle of unanimous consent both for budgetary and policy matters, which was opposed by other MIs.
Mortgage bankers are concerned how the proposed FHA fee will be applied and whether it may cause lenders to become even more cautious and less incented to use the full FHA credit box.
The year’s top five FHA lenders – Wells Fargo, Quicken Loans, JPMorgan Chase, Freedom Mortgage and Bank of America – combined for 21.9 percent, or $46.0 billion, of total agency production, down 34.6 percent quarter over quarter.
Lenders are more cautious in the post-subprime era and they no longer practice “risk layering” on loans to borrowers with less-than-stellar credit histories as they did in the past.
Despite the slowdown, an estimated 630,000 mortgages were guaranteed by VA in FY 2013 – a record. Wells Fargo was the top VA funder with $14.82 billion. USAA was second.
The lawsuit seeks to recover unspecified damages and penalties from the defendants for using fraudulent mortgage assignments and FHA endorsements to submit tens of thousands of false FHA claims from 2000 through 2010.
Also, Morgan Stanley recently increased its stake in Arch Capital Group to 6.3 percent. Arch owns CMG Mortgage Insurance, which is being renamed Arch Mortgage Insurance Company.
American Advisors Group, whose spokesman is former U.S. Sen. Fred Thompson, R-TN, led with $1.05 billion in reverse mortgage originations and a 9 percent market share.
An industry source said lenders in the Riverside-San Bernardino-Ontario housing market are gearing up to petition HUD to recalculate the FHA loan limits in those areas.