Tag Archives: FHA

Mortgage bankers originated $110 billion of commercial and multifamily mortgages during 2010 - an increase of 36 percent from 2009, according to the Mortgage Bankers Association. A separate report from Jones Lang LaSalle corroborates the trade group's assessment of a resurgence in the financing market and indicates even stronger growth in 2011, even without the predicted surge is distressed sales. Wells Fargo is ranked as the largest servicer of commercial and multifamily mortgages.

The Federal Housing Administration (FHA) announced Friday that it is extending the suspension of its 'anti-flipping rule' through the remainder of 2011. FHA Commissioner David Stevens says the temporary waiver will accelerate the resale of foreclosed homes in neighborhoods that are overrun with abandoned properties and blight. The move is intended to help stabilize home values and improve conditions in communities experiencing high foreclosure activity.

HUD announced this week that it has terminated the Origination Approval Agreements of 15 mortgage lenders' Homeownership Centers due to poor performance and high default rates. In addition, the federal agency terminated eight lenders' Direct Endorsement (DE) approval. Lenders with Direct Endorsement agreements are authorized to both originate and underwrite an FHA loan. HUD's regulations permit the agency to terminate its agreement with any mortgagee whose default and claim rate exceeds a certain threshold based on their geographic area.

Fewer mortgage-related firms closed their doors during 2010 than in 2009, according to newly released industry data. Including mortgage companies, retail and wholesale credit unions, and federally insured banks, the report tracked 201 mortgage-related business operations that either failed or were shut down during 2010. The casualty list was smaller than 2009's count, which stood at 230 mortgage-related fatalities - the most since 1998, when the report was first issued.

HUD recently deployed a new risk management tool developed by Walzak Consulting Inc. for use in its Management and Marketing III (M&M III) program for HUD field service manager and asset manager contractors who oversee the maintenance and sales of foreclosed FHA homes. The model measures and tracks the performance of HUD's REO vendors in meeting and following the department's contractual requirements and operational procedures.

The Federal Housing Administration (FHA) aims to assist senior borrowers with its newly released guidance on reverse mortgages, or the Home Equity Conversion Mortgage (HECM) program. According to the federal agency, some elderly homeowners are struggling with outstanding property taxes and unpaid hazard insurance premiums. Those who neglect to pay these expenses may face foreclosure, even in instances where the homeowner's mortgage is paid in full.

Congressman Randy Neugebauer (R-Texas), chairman of the House oversight subcommittee, has released a letter to the Federal Housing Finance Agency (FHFA) expressing concern about reports that the Obama administration is pressuring Fannie Mae and Freddie Mac to write down principal mortgages. Neugebauer argues that the GSEs' participation in such a program would increase taxpayer losses - already approaching $150 billion - and run counter to the statutory obligation of FHFA to minimize taxpayer exposure.

After more than a year-long investigation, the Financial Crisis Inquiry Commission has pushed the release date of its findings to January 2011, instead of December 15, 2010, as mandated by Congress. The four Republican members of the 10-person committee, though, broke ranks and published their own report this week. They are placing blame for the housing bubble that brought the nation's economy to its knees squarely on the shoulders of the federal government, going all the way back to the mid-1990s.

With property values still tumbling, it's no surprise that nearly a quarter of the nation's mortgage borrowers owe more than their home is worth. Industry studies support the consensus that the farther a borrower sinks into negative equity, the more likely they are to throw in the towel. The severity of this catch-22 is now top-of-mind for government officials. The administration is reportedly pressuring Fannie Mae and Freddie Mac to make principal write-downs a key component of their foreclosure prevention efforts.

The Federal Housing Administration (FHA) has issued a notice to its approved mortgage lenders outlining the loan limitations it's put in place for fiscal year 2011. According to Mortgagee Letter 10-40 issued by the federal mortgage insurer last week, for forward loans, the limits apply to those that are originated and receive credit approval between January 1, 2011 and September 30, 2011. For reverse mortgages, the limits are applicable to all loans that have been assigned an FHA case number within the stated effective dates.