HUD proposed a new definition of qualified mortgage (QM) in a statement released Monday. To meet the new QM requirements, a mortgage will have to require periodic payments, have terms not exceeding 30 years, limit upfront points and fees to no more than three percent with adjustments to facilitate smaller loans, and be insured or guaranteed by FHA or HUD.

The Federal Reserve's 12 regional districts reported moderate economic expansion across most of the country during the final weeks of last year. What's more, indicators point to more steady growth ahead and widespread improvements in local real estate markets. According to the Fed, most districts saw increasing home sales, home prices, and construction activity. Some district contacts reported relaxed lending standards amid growing competition for credit.

What's ahead for housing in 2014? The economics team at Wells Fargo Securities is forecasting a pull-back in investor activity, and with the fundamentals underlying housing demand, job and income growth, and household formations making only modest strides in a relatively thin market, they say to look for modest gains in home sales and residential construction, with price appreciation decelerating back into the mid to low single digits.

Fannie Mae's forecast shows a mostly optimistic view of the coming year. The GSE expects the housing sector to double its contribution to overall GDP growth in 2014, which is predicted to come in at 2.9 percent. The 2014 forecast accounts for three key drivers: an acceleration in spending activity from the private sector, waning fiscal drag from the government, and the housing market's ongoing recovery.

Bank stocks were reportedly up in Q4 2013, but under current market conditions, the investment firm FBR Capital Markets doubts most banks will live up to the hype when quarterly earnings are reported. FBR says weak loan growth and margin pressures will likely drive down mortgage banking results. Based on secondary market observations, the firm estimates last quarter's mortgage activity to be down nearly 50 percent year-over-year.

Mortgage Harmony Corp., the provider of Loan Retention Software (LRS) and the HarmonyLoan product, announced that its Rate Reset Protection software has been added to online applications on select mortgage products from Pentagon Federal Credit Union (PenFed), the country's third largest credit union.

A new index from the National Association of Home Builders and First American tracks more than 350 metro markets across the country to assess individual performance based on pre-crisis norms in terms of housing permits, prices, and employment. Currently, the index shows 56 markets have returned to their pre-housing crisis """"norms"""" and more than 35 percent are at least 90 percent recovered.

Servicers Compliance Group, Inc. (SCG) opened its doors for business Thursday, one day before the Consumer Financial Protection Bureau's new mortgage servicing rules go into effect. Launched by the risk management firm Lenders Compliance Group, Inc., SCG is a full-service, mortgage risk management firm, specializing exclusively in outsourced compliance solutions for mortgage servicers and subservicers.

If you haven't reviewed the upcoming changes in regulations from the Consumer Financial Protection Bureau, better put on a big pot of coffee. On January 10, the rules are changing, and this includes amendments to the Real Estate Settlement Procedures Act (Regulation X) and the Truth in Lending Act (Regulation Z). Which areas of mortgage servicing are impacted? It might be simpler to ask which areas aren't impacted.

RIO Software Solutions, the parent company of RIO Genesis Software system, has unveiled a new free online education series called """"Broker School."""" It offers lessons on how to open, grow, and manage a profitable real estate office, with topics ranging from basic operational fundamentals to lead management and agent recruitment.