Tag Archives: FHA

GCC Servicing Systems, a provider of mortgage servicing technology and solutions, has announced the availability of a new investor accounting and reporting component through the company's professional services suite. This new offering enables servicers to meet the accounting and reporting requirements of Fannie Mae, Freddie Mac, the Federal Housing Administration (FHA), and the USDA's Rural and Community Development loan program. It also agency default reporting.

Radar Logic plans to publish a response to the government's proposal to sell pools of foreclosed homes to investors to rent. In its RPX Monthly Housing Market Report for August, the company expressed concerns that the plan could negatively affect home prices in the broader market. Radar Logic believes the REOs sold in bulk to investors will come at lower prices than if they were sold individually - prices much lower than non-distressed sales, and these low prices could lead to low appraisals for other homes on the market.

The Federal Housing Administration (FHA) released a notice outlining new guidelines for trial payment plans for FHA loss mitigation actions. The new rules go into effect October 1. When offering permanent modifications or partial claims, servicers must implement trial payment plans for any borrowers who have missed at least two payments in the past year; have failed a HAMP trial payment plan; have a net surplus income of less than 20 percent of their total net income; or whose mortgage was originated fewer than 14 months ago.

HUD has announced it will sell almost 90 REO properties to public housing authorities in central Alabama and Joplin, Missouri -- areas suffering the impact of this spring's tornadoes. In a pilot program, HUD will sell move-in ready properties to public housing authorities at a discount, and the housing authorities will lease or sell the homes to families impacted by the storms. The houses will be ready for sale or lease within two months of the purchase from HUD.

The Obama administration is setting the stage for a public-private collaboration to tackle the growing inventory of REO homes. On Wednesday, federal officials called on private investors and industry stakeholders to share their recommendations on how best to dispose of foreclosed homes held by Fannie Mae, Freddie Mac, and FHA. Together, the three hold nearly 250,000 REO homes. Federal officials believe the most effective tactic is to sell off pools of properties to responsible investors who will employ an REO-to-rental strategy.

Bank of America and the Department of Housing and Urban Development (HUD) have reached a settlement regarding 57,000 delinquent government-issued mortgages serviced by the bank. Under the agreement, BofA must pursue loan modifications with the 57,000 borrowers that it previously did not offer foreclosure alternatives. However, the servicer will not be held liable for foregoing such efforts in the past, though the actions are required by HUD.

The U.S. Department of Justice has filed a civil lawsuit against Robert S. Luce, founder and president of MDR Mortgage Corp. a mortgage lending business located in Palatine, Illinois. The complaint centers around 90 Federal Housing Administration (FHA) loans that went into default. According to the complaint, HUD was required to pay more than $1.6 million in insurance claims on the loans, which Luce and MDR were not authorized to originate.

After heading higher for three straight months, the nation's unemployment rate declined to 9.1 percent in July, down from 9.2 percent in June, according to figures released Friday by the U.S. Department of Labor. The economy added 117,000 jobs last month. July's numbers beat analysts' forecasts. Investors are hoping the news will help dispel fears of a double-dip recession and quell some of the sell-off frenzy seen in the stock market yesterday, which led to the largest one-day drop in the Dow since the financial upheaval following Lehman Brothers' collapse.

The Federal Housing Administration's (FHA) Mortgagee Review Board has announced sanctions against 240 FHA-approved lenders. The federal agency says these lenders failed to meet its underwriting requirements for home loans, which are designed to minimize the risk of default. Actions taken against the 240 lenders include reprimands, probations, suspensions, and civil money penalties. In addition, some lenders will have their FHA-approval revoked.

Five years into the housing slump, and home sales remain weak with prices falling again in many parts of the country as foreclosures and short sales are ramping up. Mark Zandi, chief economist for Moody's Analytics, says while it certainly won't be the popular move, it may be time for the government to step up temporary support for the housing market. Zandi underscores three policy recommendations that he believes could help ensure housing stays on course.