Senate Banking Committee Chairman Tim Johnson, D-SD, and Ranking Minority Member Mike Crapo, R-ID, have released a draft FHA solvency bill that is far less ambitious than legislation proposed by House GOP leaders last week. The Senate bill, the FHA Solvency Act of 2013, would essentially shore up the existing FHA program by allowing higher mortgage insurance premiums and requiring a bigger capital buffer. The housing finance reform bill introduced by Rep. Jeb Hensarling, R-TX, chairman of the House Financial Services Committee, would significantly change the FHA program by narrowing its focus and limiting the depth of coverage it provides. The draft Senate bill contains...
The purchase-mortgage market in the first half of 2013 has shown solid gains over the same per-iod last year, especially in a handful of booming state markets, but different lenders are having widely varying success getting on top of the wave. A new Inside Mortgage Finance analysis of Fannie Mae and Freddie Mac loan-level data shows that 20.2 percent of single-family mortgages securitized by the two government-sponsored enterprises in the first half of the year were purchase-mortgage loans, and total volume was up 31.1 percent from the same time last year. First-time homebuyers accounted...[Includes two data charts]
The high-stakes game of chicken Congressional Democrats and Republicans have been playing for the better part of the last two years over President Obamas nomination of Richard Cordray to be director of the Consumer Financial Protection Bureau came to an end this week as GOP members of the Senate blinked first. On Tuesday, the Republicans agreed to allow an up-or-down vote on Cordray to avert a showdown over longstanding filibuster rules in the Senate. Sen. Majority Leader Harry Reid, D-NV, has been threatening to upend the Senates traditional filibuster mechanism and change the rule under which presidential nominees must receive 60 votes in order to be approved. Cordrays nomination to a full five-year term was approved...
Wells Fargo increased its residential servicing portfolio by a meager 2 percent in the second quarter but marked up the asset value of its mortgage servicing rights by a mouth-watering 18 percent, a clear sign that it feels comfortable about both improving delinquencies and higher interest rates. The nations largest lender/servicer was hardly alone among the nations megabanks, all of which reported higher market values on MSR remaining principal balances that were mostly unchanged. Bank of America reported...
Compliance experts are urging FHA lenders to express their concerns about a potential new enforcement regime the Department of Housing and Urban Development has proposed that could raise the risks of doing business with the FHA. The HUD proposal, which was published as a notice in the Federal Register with a comment deadline of Sept. 9, seeks comment on measures that would further enhance quality assurance in origination, underwriting and servicing. HUD has routinely used quality assurance methods, including routine and targeted audits, post-endorsement loan reviews and monitoring of early default and claim rates to evaluate lender compliance. Attorneys with K&L Gates cautioned...