If implemented as proposed, Basel III capital requirements would force major changes for bank lenders and servicers, according to industry participants. Originations of non-agency mortgages would remain limited, mortgage holdings would be sold and borrowers would face additional costs. Rules to implement Basel III were proposed in June by the Federal Deposit Insurance Corp., the Federal Reserve and the Office of the Comptroller of the Currency. Comments were due in October and some industry ...

There is substantial risk that the FHA may end up with a negative net worth, which would require congressional appropriations for the mortgage insurance fund and passage of legislation reforming the FHA, said a former top official at the Department of Housing and Urban Development. In remarks this week at the Urban Institute, John Weicher, former assistant secretary for housing and FHA commissioner in 2001-2005, said it is very unlikely in this weak economic recovery to see ...

Hurricane Sandy homeowners with FHA and VA mortgages have been given temporary relief, including a 90-day suspension on foreclosures and as much as 100 percent financing for victims who have lost their homes. The Department of Housing and Urban Development and the Department of Veterans Affairs have announced federal disaster assistance to hard-hit areas in Connecticut, New York and New Jersey. Both agencies announced a three-month freeze on foreclosures in the affected areas as well as forbearance on foreclosures of FHA and VA home loans. The VA advised its lenders that careful counseling should ...

Fannie Mae and Freddie Mac this week reported a combined $4.74 billion in net income during the third quarter, as the two government-sponsored enterprises avoided taking further draws from the Treasury Department by staying in positive earnings territory. The GSEs’ combined third-quarter income was down 41.7 percent from the previous three-month period, mostly because Fannie’s net income fell 64.6 percent from second-quarter earnings that were pumped up by a $3.04 billion recorded benefit on credit losses. Fannie’s $1.81 billion in third-quarter net income was much more in line with the $2.72 billion it earned in the first three months of the year, as well as Freddie’s recent performance. Freddie reported...

With third-quarter earnings results right around the corner for Fannie Mae and Freddie Mac, the Federal Housing Finance Agency last week released a revised range of projected draw-downs the GSEs could take from the U.S. Treasury over the next three years. Fannie’s and Freddie’s total taxpayer cash infusion could top as much as $209 billion by the end of 2015 – a “savings” of more than $100 billion from similar projections one year ago, according to the Finance Agency.

With most precincts now having reported third-quarter earnings, the outcome is clear: mortgage banking was hugely profitable during the third quarter of 2012. A new Inside Mortgage Trends analysis of earnings reports from 25 public companies reveals record mortgage banking income of $9.903 billion during the third quarter. That was a huge 19.2 percent increase over the hefty $8.311 billion these companies earned from their mortgage banking activities during the second quarter ... [Includes one data chart]

Mortgage brokers have made a comeback and a number of new buyers have stepped into the correspondent market – with the common theme of a stronger focus on loan quality. Wholesale lenders have become more selective, said Matthew Young, a senior vice president at Genworth Mortgage Insurance, during a panel session at the Mortgage Bankers Association annual convention in Chicago last week. Buyer attitudes in the correspondent market have been shaped by the risk of mortgage buybacks, which have led to ...

It looks like many banks may have been too distracted with loan modifications, foreclosures and regulatory compliance issues over the last few years to notice a potentially vast untapped well of profit in their own back yards. A new consumer mortgage study finds that banks are passing by an opportunity to increase their mortgage business by a whopping 79 percent with their existing customer base. “Thirty-nine percent of survey respondents have their mortgage with their primary bank, the bank with which they do ...

Regulations arising from the Dodd-Frank Act and Basel III capital standards would result in fewer mortgage loans made, tighter lending standards, reduced home sales, fewer jobs and slower economic growth, warned a new study from the American Action Forum, a policy think tank in Washington, DC. In particular, the AAF said that taken as a whole, the finalized rules on qualified mortgages and qualified residential mortgages,as well as Basel provisions requiring banks to hold more capital for certain risk-weighted ...

Independent mortgage companies could lose access to warehouse funding or at least face significantly higher costs if Basel III capital requirements are implemented as proposed, according to the Mortgage Bankers Association. The capital requirements proposed by federal regulators would change the definition of “financial collateral” included in proposed standardized approach rules by excluding conforming residential mortgages. “This change would significantly reduce the amount of funding available to non-depository mortgage bankers since the warehouse lines ...