HUD

Browse articles from all of our Newsletters related to HUD.

January 12, 2018 - Inside FHA/VA Lending

Florida District Court Allows U.S. to Intervene in FHA FCA Suit v. BofA

A federal district court in Florida has agreed to a government motion to intervene in a False Claims Act lawsuit against Bank of America in order to reach a settlement on behalf of a relator. Bruce Jacobs, a foreclosure attorney and relator in South Florida, filed the lawsuit. A former Miami prosecutor, he now represents homeowners in foreclosure proceedings initiated by financial institutions, including BofA. In his lawsuit, Jacobs alleged that BofA submitted false claims in violation of the FCA. Specifically, the bank allegedly submitted endorsements with unauthorized signatures and false mortgage assignments that would confer standing to foreclose. In addition, Jacobs additionally asserted a reverse FCA claim alleging that BofA made false statements when entering into the 2012 National Mortgage Settlement (NMS) consent judgment with the U.S. government. The landmark $25 billion settlement with ...


January 12, 2018 - Inside FHA/VA Lending

Galante’s FHA Restructuring Plan Elicits Bland Stakeholder Response

A former FHA commissioner’s proposal to restructure FHA as part of broader housing-finance reform has received mixed responses from industry stakeholders and the Department of Housing and Urban Development. While participants in a recent panel discussion hosted by the Urban Institute praised the proposal, they admitted to still being unsure about FHA’s role in a revamped world of Fannie Mae and Freddie Mac, and a single mortgage-backed security. The recommendation for a reconstituted FHA is part of a paper presented for debate at the Urban Institute this week by Carol Galante, faculty director of the Terner Center for Housing Innovation at the University of California Berkeley, and former head of FHA during the second Obama administration. Under Galante’s proposal, all of FHA’s mortgage insurance programs would remain with the agency while rental assistance and other ...


January 12, 2018 - Inside FHA/VA Lending

Ginnie MBS Program Faltered In 2017, Refi Flow Up in 4Q17

Ginnie Mae set records for new issuance of single-family mortgage-backed securities in 2015 and 2016, but production sagged last year, according to a new analysis and ranking by Inside FHA/VA Lending. The agency issued $443.20 billion of MBS backed by forward single-family mortgages in 2017, a 10.8 percent decline from the previous year. Including FHA reverse mortgages and that are not truncated, 2017 issuance fell 10.3 percent to $455.00 billion. Meanwhile, the private mortgage insurance business – based on Fannie Mae and Freddie Mac MBS data – saw a smaller decline of 5.0 percent from 2016 to last year. The VA program generally held up better than the FHA program during the fourth quarter, when refinance lending was climbing. But the FHA had a better year overall despite some loss of market share in purchase-mortgage activity. Deliveries of FHA loans into ... [ Charts ]


January 11, 2018 - Inside Mortgage Finance

Galante Paper Recommends Restructuring FHA As a Self-Sustaining Government Corporation Within HUD

A former FHA commissioner called for the restructuring of the agency as a government corporation within the Department of Housing and Urban Development with its own separate appropriation, budget control and risk-management capabilities.


December 14, 2017 - Inside Mortgage Finance

Lenders Continue to Get Hit with Steep Penalties Despite HUD Chief’s Assurance the FCA Issue Would be Resolved

IberiaBank of Lafayette, LA, has agreed to pay $11.7 million to the federal government to resolve an alleged violation of the False Claims Act by submitting false certifications to obtain FHA in-surance on ineligible mortgages.


December 8, 2017 - Inside FHA/VA Lending

Senate Vote on FHA Nominee may Occur Before Yearend, Says Source

The Senate could vote on Brian Montgomery’s nomination as FHA commissioner and assistant secretary for housing before the end of the year. The nomination appears to be on a fast track to get Montgomery, a mortgage industry and FHA veteran, on board at the Department of Housing and Urban Development by early January, according to an industry participant who requested anonymity. Last week, the Senate Committee on Banking, Housing and Urban Affairs voted 18 to 5 to advance Montgomery’s nomination. Twelve Republicans and six Democrats voted in favor of the nominee. Sens. Sherrod Brown, D-OH, and Elizabeth Warren, D-MA, opposed Montgomery’s nomination due to concerns that his work as a private consultant with the mortgage industry might influence his judgment as FHA commissioner. Montgomery, a principal with The Collingwood Group, is no stranger to the job. He served as ...


December 8, 2017 - Inside FHA/VA Lending

Rising Home Values Lead to Higher Loan Limits for Forwards, HECMs

FHA this week announced a 6.8 percent increase in loan limits nationwide for 2018 with 26 counties seeing increases above the national rate. In high-cost areas, the loan-limit ceiling will rise to $679,650 from $636,150 in 2017, while the floor will increase to $294,515 from $275,665. In addition, the national mortgage limit for Home Equity Conversion Mortgages (HECMs) or reverse mortgages will rise to $679,650 from $636,150. FHA regulations do not allow HECM loan limits to vary by metropolitan statistical area or county. Instead, the single limit applies to all mortgages regardless of where the property is located, the agency explained. In between the floor and the ceiling is a broad band of loan limits for single-family forward mortgage loans set at 115 percent of median house prices. The forward limits vary according to MSA and county. The changes in the loan limits are the result of ... [ Chart ]


December 8, 2017 - Inside FHA/VA Lending

Ginnie Mae Expands Seasoning Requirement for VA Refi Loans

Ginnie Mae has issued expanded guidelines to protect veterans and investors from harmful loan churning and rapid prepayments in mortgage-backed securities. The changes, along with additional measures under consideration by a joint Ginnie Mae/VA refinance task force, are aimed at ensuring continued strength and liquidity of the Ginnie Mae MBS program, said Michael Bright, the agency’s acting president. The latest guidelines expand on an initial measure Ginnie implemented requiring six-months of seasoning of VA loans before they can be refinanced and delivered into Ginnie MBS pools. However, some lenders have found ways around the measure and have continued their questionable lending practices, said Bright during recent testimony before a House Financial Services subcommittee. Churning is both illegal and unethical because it preys on unsuspecting borrowers, who are pressured by ...


Poll

How many new retail loan officers (net) is your shop looking to hire in the first quarter of 2018?

1 to 10. We’re being careful.
11 to 30. We’re feeling slightly bullish.
31 or more. We’re in expansion mode.
None. We’re staying right where we are, for now.
We’re cutting back.

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