Some non-agency participants have called for an immediate return to conforming loan limits of $417,000, which were in place in 2008 before Congress established emergency loan limits for high-cost areas.
Confusion and uncertainty around representations and warranties standards continue to cause lenders to add their own overlays to the existing GSE credit standards, said MBA vice chairman Bill Cosgrove.
It appears that looser underwriting has been driven by an increase in the number of lenders participating in the HARP program and copy-cat efforts that allow for LTVs of greater than 95 percent.
In addition to having the most failed metrics, CitiMortgage was found to be in widespread noncompliance with the timeliness requirement to notify a borrower of any missing documents in his modification application.
MBA pushes for GSE AU engines to be synchronized. Meanwhile, a factoid of mortgage history: Treasury chief Paulson wanted Fannie and Freddie put in receivership.
Bipartisan legislation in the house to enact a transitional period for loan originators relating to the SAFE Act, a previous of a hearing on the Dodd-Frank Act's impact on homeownership by a subcommittee of the House Financial Services Committee, and regulatory implementation materials from the Consumer Financial Protection Bureau.
Former rating analysts at two of the major rating services told the Securities and Exchange Commission that problems with the rating system are due to management at the rating services, not the analysts in charge of assigning ratings.