The CFPB has proposed allowing banks, credit unions and other financial services companies to test new consumer disclosures on a case-by-case basis. The bureau would have to approve of the disclosure programs ahead of time. Under the proposal, the CFPB would exempt certain qualifying individual companies for a limited time from existing federal disclosure laws so they can research and test “informative, cost-effective disclosures.” The participating companies would then share their results with the agency so it...

As the wait for the highly anticipated “qualified mortgage” final rule continues, its impact on FHA lending programs remains uncertain. Concerns have been raised over the possibility that the final QM rule the Consumer Financial Protection Bureau is finalizing may establish a “safe harbor” for prime loans with a maximum debt-to-income ratio of up to 43 percent. This could have implications for FHA loans, which allow higher back-end ratios under certain circumstances, according to some lenders and industry participants. At what point the DTI ratios will ...

The FHA and VA have announced loan limit adjustments in many counties even as disparities with conventional loan limits persist in 2013, according to a new analysis by Inside FHA Lending. FHA loan limits for forward mortgages will increase in 2013 for 19 counties, 10 of which are part of the Houston metropolitan area. In those counties, the one-unit limit is going up just $1,500 to $272,550. The remaining counties are in Alaska. Congress authorized the “emergency” loan limits for high-costs markets – still $729,750 for FHA and $625,500 for Fannie Mae and Freddie Mac –to run through Dec. 31, 2013. The base loan limit nationwide and in ...

Despite the renewed focus on the FHA in the wake of the recent actuarial report, analysts do not expect any meaningful action in 2013 given the important role that FHA plays in supporting the housing market. But that does not mean that the Department of Housing and Urban Development will be sitting idly by next year. It has a lot of additional measures to implement to protect and preserve the FHA Mutual Mortgage Insurance Fund, HUD Secretary Shaun Donovan told Senate lawmakers recently during a hearing on the condition of the fund. The changes are both ...

Major home-equity lenders continued to show little interest in the sector during the third quarter of 2012, despite signs of strengthening home values, according to a new Inside Mortgage Finance market analysis and ranking. New originations of home-equity loans – including closed-end seconds and home-equity lines of credit – remained at a sluggish $14.0 billion in the third quarter, unchanged from the previous period. The HEL market in 2012 has rebounded about 5.3 percent from the pace set during the first nine months of 2011. The uptick in new HEL originations has not been...[Includes three data charts]

Warehouse commitment volumes remained strong in the third quarter as nonbanks continued to need credit to meet the surging demand for refinancing, according to new survey figures compiled by Inside Mortgage Finance. The strong showing was hardly surprising, but several warehouse executives noted one new trend: a small revival in syndicated warehouse lines where several banks participate in the credit. “A year ago there were...

The distressed property share of home sales has decreased in each of the seven months ending in November, according to the latest Campbell/Inside Mortgage Finance HousingPulse Tracking Survey, as short sales, real estate owned activity and investor purchases have become less prevalent. Distressed properties accounted for 33.7 percent of home sales in November, based on the three-month moving average, the lowest level seen in more than three years. Before the decline in distressed property activity, distressed property sales had hovered around 42.0 percent for more than two years. “As housing prices rise and unemployment declines, there are...

The average mortgage banking firm reported a hefty $4.12 million net profit during the third quarter of 2012, up 40.4 percent from already high earnings in the previous quarter, according to the Mortgage Bankers Association’s performance report. Although the MBA survey group – 311 companies in the latest report – varies somewhat from period to period, the third quarter earnings represent a windfall in profits that mirrors the results reported by large public companies and financial institutions ...

Upcoming changes from the Internal Revenue Service will allow for a completely paperless mortgage application process, according to industry participants. Beginning Jan. 7, the IRS will allow electronic signatures for IRS Form 4506-T, request for transcript of tax return. The electronic signatures will be allowed for tax transcripts ordered through the IRS Income Verification Express Services. “The requirement of a manual signature on the IRS 4506-T was the last significant impediment to a truly ...

In a development that might catch the attention of officials at the CFPB who are working on improving consumer disclosures under the Real Estate Settlement and Procedures Act and the Truth In Lending Act, more evidence has emerged that consumers aren’t very big on using TILA forms to comparison shop for mortgages.A new study from Fannie Mae found that nearly half of lower‐income respondents and more than a third of higher‐income respondents get quotes from only one mortgage lender. The survey also confirms findings in other reports that “a substantial portion of all consumers do not understand key mortgage elements.”