The financial condition of nine of Ginnie’s largest nonbank issuers is under review as part of the agency’s ongoing effort to ensure they are financially capable of withstanding the worst economic conditions.
An IG audit has discovered delays in servicer reporting of FHA-HAMP loan modifications and filing of partial claims, resulting in HUD’s inability to act on problems in a timely manner.
HUD seeks condominium-related data collection approval from OMB; Ginnie plans revision of file layout for HMBS pool-level disclosures; automated set-up of electronic funds transfer accounts.
Former FHA Commissioner Dave Stevens: “The absence of banks in FHA has been a challenge ever since the False Claims Act was used as an excessive enforcement mechanism, making it far too great a risk to participate in the program.”
Ginnie Mae will meet with nine of its top nonbank issuers to discuss counter-party risk and how they plan to address capital and liquidity issues as part of its continuing surveillance of nonbanks’ financial health.
The newly formed mortgage entity paid $750,000 to the bank for the release and assumption of the employees and for transfer of the VAmortgage.com domain name. Financing of the transaction is unclear.
A coalition of state AGs and Hawaii’s Office of Consumer Protection urged the OCC to withdraw a proposed rule that would confer federal preemption privileges on unregulated nonbanks.
As the industry moves from LIBOR to SOFR, the ARRC is seeking input on whether the spread-adjustment methodology for cash products should be consistent with what’s adopted internationally for derivatives.