News

Richard M. Rothfuss, president of Lerner, Sampson & Rothfuss, recently received the USFN Founder's Award for his service and dedication to the USFN-- America's Mortgage Banking Attorneys. The award recipient must have demonstrated a deep and abiding commitment to USFN and epitomize the character and ideals of the founders of attorney association.

The Federal Housing Finance Agency (FHFA) says it wants input on a plan to lower the ceiling for loans eligible for purchase by Fannie Mae and Freddie Mac. Under FHFA's proposed plan, the $417,000 maximum limit for single-family homes in most areas around the country would be lowered to $400,000, a reduction of about 4 percent. Areas with higher limits would see a similar cut, with the $625,500 maximum dropping to $600,000.

About 6.4 million homes remain underwater after nearly 800,000 homes returned to a state of positive equity during the third quarter, according to the latest data from CoreLogic. The real estate analytics and services provider says the increase in equity brought the share of underwater properties down to about 13 percent nationally, compared to 14.7 percent in the second quarter.

With only weeks left before the end of 2013, the FDIC has added another mark to its tally of the year's bank failures. The OCC announced the closing of Texas Community Bank, N.A. on Friday, appointing the FDIC as receiver. It's the second FDIC-insured institution to close in the Lone Star State this year and the 24th nationwide.

Federal regulators have revised new appraisal rules set to take effect in January to include exemptions for some higher-priced mortgage loans, according to a press release from six federal financial agencies. Officials described the updated exemptions as ""appropriate,"" and added loans less than $25,000, streamlined refinances, and loans secured by a manufactured home and land as exempt.

Fay Servicing, a Chicago-based special servicer, has earned stable outlooks from both S&P and Fitch Ratings. According to the agencies' assessments, the rating actions are based on Fay's robust single point of contact (SPOC) model and integrated servicing technology.

As the newly confirmed Mel Watt prepares to take the reins at the Federal Housing Finance Agency, current Acting Director Edward DeMarco has announced changes to the agency's senior staff. Jeffrey Spohn, deputy director of the Office of Conservatorship Operations, will retire in January. To fill the role, the agency has appointed Wanda DeLeo, who currently serves as deputy director in the Office of Strategic Initiatives. The two divisions will be combined into a new Division of Conservatorship to ease the transition.

The mortgage servicing industry is fielding a spate of new rules and regulations--49 mortgage reforms and 63 required rules related to consumer protection. With the regulatory intervention the industry is experiencing today, there is an increased and immediate need for system controls, certification of compliance, and information management controls--for both servicers and their outsourcing partners.

The city of Los Angeles has launched a series of lawsuits against three of the nation's largest banks alleging they persisted in discriminatory lending practices that contributed to more than 200,000 foreclosures between 2008 and 2012 that cost the city more than $1.2 billion. The lawsuits charge all three banks with redlining and reverse redlining; the banks, however, deny the allegations.

HUD has issued a newly revised definition for Qualified Mortgage (QM) which will affect all Federal Housing Administration (FHA) loans moving forward. The new rule goes into effect January 10, 2014, and will apply to mortgages that are insured, guaranteed, or administered through HUD. The agency's version of QM builds on the existing QM rule finalized by the Consumer Financial Protection Bureau earlier this year.