The Mortgage Insurance Insider
As mortgage insurers grapple with losses and shifting strategies, a number of guideline updates were issued. New laws have been enacted in three states to help mortgage insurers cope deteriorating finances, while two new insurers continued to seek state approvals.
In eBulletin 2009-05, Radian Guaranty Inc. said borrowers who refinance with the same servicer under the Home Affordable Refinance Program can utilize guidelines for loan amounts, loan proceeds and closings costs and prepaids from either Fannie Mae's Refi Plus / DU Refi Plus or Freddie Mac's Relief Refinance Mortgage / Relief Refinance Mortgage - Open Access.
When a new servicer is involved, Radian said the The AUS response of DU Refi Plus Approve/Eligible or Relief Refinance Mortgage - Open Access Accept/Eligible LP is acceptable.
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Fed Approves Servicing Transfer Rule
The Federal Reserve has approved a rule that requires disclosures when a mortgage is sold or transferred. The rule is part of federal legislation passed earlier this year.
Regulation to Intensify
The impact of the Obama administration on the financial services industry will likely be new rules, additional regulations and increased enforcement actions, according to experts at one compliance firm.
The Appraisal Scoop
Appraisers didn't appreciate being recently blamed by home builders for low values, and several groups have written a letter to Congress about it. Meanwhile, one appraisal services firm is re-branding itself, and two others have integrated their services.
DPA Blamed for FHA Shortfall
The Federal Housing Administration's capital reserve level has fallen below the federally mandated minimum -- and loans that utilized seller downpayment assistance were to blame for all of the shortfall. In a report to Congress, the administration called FHA's recent expansion temporary and committed to a reduced FHA role as private investment returns to the mortgage market.
Lenders Warn About Legislative Draft
A new bill drafted in the Senate has mortgage bankers concerned about inconsistent regulations between states and skin-in-the-game requirements on securitized loans.
Saxon, Citi & GMAC Score Well on HAMP
Saxon Mortgage Services Inc. received the highest grade from the Obama administration for its performance on the Home Affordable Modification Program. But some other servicers are touting their own HAMP performance.
FHA Eases Condo Requirements
Under a new process, mortgagees approved by the U.S. Department of Housing and Urban Development can approve condominium projects themselves. HUD has also implemented some temporary provisions as it moves to support the condominium market.
Lenders Warn About Forcing 'Skin in the Game'
Pending legislation would force mortgage bankers to retain "skin in the game" on residential loans they originate -- a move that could be catastrophic according to the industry's primary trade group. In addition, the group is calling for commercial mortgage lenders to be completely exempt from such legislation.
Legislation to Extend Loan Limits Passes
Mortgage bankers praised Congress for extending higher loan limits that were set to expire.
