Last week, GMAC Mortgage announced implementation of the Responsible Homeowner Reward Program to provide monetary incentives to underwater VA loan borrowers who continue making payments on their loans. The RHRP was designed by the Loan Value Group as a way to address negative equity without necessitating additional documents or new underwriting. Homeowners build up their reward each month for a fixed period of time, so long as they are current. The size of the reward is consistent with the negative equity and severity of the loan. If the borrowers meet all of the payment milestones on time, GMAC Mortgage will...
Despite the sound and fury from publicly peeved House Democrats directed at Federal Housing Finance Agency Acting Director Edward DeMarco, including calls for him to step aside, the consensus among industry insiders and those in the know on Capitol Hill is – good luck finding anyone else willing or able to jumpstart the underperforming GSE refinance plan while obeying the FHFA’s restrictive regulatory mandate.
Any changes that would restrict membership or narrow the Federal Home Loan Banks’ mission should come first from Congress not by administrative fiat, Bank officials told House members this week.FHLBank of Dallas Chairman Lee Gibson testified before the House Financial Services Subcommittee on Oversight and Investigations that explicit Congressional guidance is both necessary and proper before any fundamental alteration of the FHLBank system is imposed.
The Federal Housing Finance Agency needs to explain why it hired expensive outside counsel instead of dispatching government lawyers in its massive litigation against the nation’s big financial institutions, as well as just how much the agency expects to recoup from the effort, according to a senior Republican congressman.
As the Federal Housing Finance Agency ponders possible improvements to the government’s Home Affordable Refinance Program, calls from different corners of the industry are growing louder for the FHFA to end fees charged to borrowers who refinance Fannie Mae and Freddie Mac mortgages.
Fannie Mae and Freddie Mac issued $177.19 billion in single-family mortgage-backed securities during the third quarter of 2011, a modest 14.3 percent improvement following two straight quarterly declines during the first six months of this year.The recent July-September cycle represented one of the weakest quarters historically for GSE MBS production since the financial markets crashed at the end of 2008.
After negotiating with a potential buyer, Bank of America gave up trying to sell its correspondent business and will simply shut the program down by the end of the year, leaving a huge potential hole in the market. The rumored bidder, NationStar Mortgage, reportedly wanted a higher price than BofA was willing to pay to take the correspondent unit off the bank’s hands. “After a comprehensive review of market opportunities, Bank of America will close its correspondent lending channel by the end of 2011, following an orderly transition with clients,” the company said in a written statement. BofA, which had already...
The Federal Housing Finance Agency knew or should have known about improper foreclosure practices involving Fannie Mae affiliated law firms long before the Finance Agency began a review, according to the regulator’s official watchdog.The FHFA Office of Inspector General’s latest audit found that the FHFA did not investigate complaints about Fannie’s Retained Attorney Network until August 2010 in the wake of negative news reports alleging that RAN attorneys had engaged in inappropriate foreclosure practices, such as routinely filing false documents in court proceedings and “robo-signing.”
Servicers face increased costs to meet new loss mitigation requirements. However, servicers at the Mortgage Bankers Association’s annual conference this week in Chicago said they have accepted the costs as a trade-off for decreased liability. “We focus on profitability, but you still have to do quality,” said Kent Lemon, a senior vice president at Saxon Mortgage Services. He said the servicer constantly works on quality assurance. Saxon uses targeted performance monitoring of employees for the Servicemembers' Civil Relief Act, fair servicing standards and other loan modification guidelines. Lemon said the servicer also...
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