FHA Commissioner David Stevens wrote to the industry today . He discussed RESPA Reform and provided and update on the implementation of the SAFE ACT. Below are his comments…. The Office of Housing’s latest efforts have a common thread: the continued need to strengthen protections for consumers in the home buying process. We are working to make the housing market stronger, sustainable, and safer. Two examples of our efforts to accomplish this goal are the recent reform of HUD’s Real Estate Settlement Procedures Act (RESPA) regulations which make mortgages more transparent and understandable, and the development of Safe Mortgage Licensing Act (SAFE) regulations which better protects consumers. Transparency is important for consumer protection. Fair dealings require open, clear information…(read more)
Freddie Mac's total mortgage portfolio shrunk by $7.53 billion or 4.0 percent during the month of May, resuming the decline that began in January. Despite a 3 percent upward blip in April, the portfolio has dropped 2.9 percent since the first of the year and now has a total balance of $2.22 trillion. The total portfolio, however, is still 18.2 percent larger than it was in May 2009. The annualized liquidation rate in May was 17.8 percent compared to 19.2 percent in April. The refinance-loan purchase and guarantee volume in the Mortgage-Related Investments Portfolio was 17.1 billion, down from 18.4 billion in May. The Investments Portfolio declined in value to 748.1 billion, a decrease of $9.2 billion or 14.5 percent from April and 2.3 percent since May 2009. The breakdown of that portfolio…(read more)
From the Fannie Mae Release… Fannie Mae announced today policy changes designed to encourage borrowers to work with their servicers and pursue alternatives to foreclosure. Defaulting borrowers who walk-away and had the capacity to pay or did not complete a workout alternative in good faith will be ineligible for a new Fannie Mae-backed mortgage loan for a period of seven years from the date of foreclosure . "We're taking these steps to highlight the importance of working with your servicer," said Terence Edwards, executive vice president for credit portfolio management. "Walking away from a mortgage is bad for borrowers and bad for communities and our approach is meant to deter the disturbing trend toward strategic defaulting. On the flip side, borrowers facing hardship…(read more)
From the Fannie Mae Release… Fannie Mae announced today policy changes designed to encourage borrowers to work with their servicers and pursue alternatives to foreclosure. Defaulting borrowers who walk-away and had the capacity to pay or did not complete a workout alternative in good faith will be ineligible for a new Fannie Mae-backed mortgage loan for a period of seven years from the date of foreclosure . "We're taking these steps to highlight the importance of working with your servicer," said Terence Edwards, executive vice president for credit portfolio management. "Walking away from a mortgage is bad for borrowers and bad for communities and our approach is meant to deter the disturbing trend toward strategic defaulting. On the flip side, borrowers facing hardship…(read more)
The US Interagency Council on Homelessness (USICH) today unveiled what is being called " the nation's first comprehensive strategy to prevent and end homelessness. " The Council, composed of secretaries and heads of 19 federal departments and agencies, is chaired by HUD Secretary Shaun Donovan. USICH was charged by the President and Congress to develop a national strategic plan under the Homeless Emergency Assistance and Rapid Transition to Housing (HEARTH) Act in May 2009. The 19 agencies, with responsibility for the nation's housing, health, employment, education, and human services have set a goal of ending veterans and chronic homelessness by 2015 and homelessness among families, youth, and children by 2020. Its report, Opening Doors: Federal Strategic Plan to Prevent…(read more)
The face of homelessness has changed in the last year, with fewer individuals lacking shelter this year than last, but more and more families finding themselves on the street. This is the conclusion of the 2009 Annual Homeless Assessment Report (AHAR) to Congress released by the Department of Housing and Urban Development (HUD). The AHAR report provides the latest counts of the national occurrence of homelessness among individuals, families, and special population groups such as veterans and the chronically homeless. The AHAR is based on two data sources: Excerpts taken from the release… Continuum of Care applications are submitted to HUD annually as part of the competitive funding process and provide one-night, Point-in-Time (PIT) counts of both sheltered and unsheltered homeless populations…(read more)
The face of homelessness has changed in the last year, with fewer individuals lacking shelter this year than last, but more and more families finding themselves on the street. This is the conclusion of the 2009 Annual Homeless Assessment Report (AHAR) to Congress released by the Department of Housing and Urban Development (HUD). The AHAR report provides the latest counts of the national occurrence of homelessness among individuals, families, and special population groups such as veterans and the chronically homeless. The AHAR is based on two data sources: Excerpts taken from the release… Continuum of Care applications are submitted to HUD annually as part of the competitive funding process and provide one-night, Point-in-Time (PIT) counts of both sheltered and unsheltered homeless populations…(read more)
Citing the need to stabilize communities affected by high levels of foreclosures, federal bank and thrift regulators have opened a period of public comment on a proposed change to the Community Reinvestment Act (CRA). The change would encourage depository institutions covered by the act to support the Neighborhood Stabilization Program (NSP) administered by the U.S. Department of Housing and Urban Development (HUD). The change would increase bank incentives to invest in or facilitate NSP-eligible activities in approved target areas. CRA requires federally regulated banks and thrifts to participate in meeting the credit needs of the entire community each serves, including low and moderate income neighborhoods, in a manner consistent with safe and sound practices. The regulatory agencies are…(read more)
The FBI has released the 2009 Mortgage Fraud Report Excerpts from the report… The purpose of this study is to provide insight into the breadth and depth of mortgage fraud crimes perpetrated against the United States and its citizens during 2009. This report updates the 2008 Mortgage Fraud Report and addresses current mortgage fraud projections, issues, and the identification of mortgage fraud “hot spots.” KEY FINDINGS: FBI mortgage fraud pending investigations increased 71 percent from fiscal year (FY) 2008 to FY 2009. HUD-OIG pending investigations increased 31 percent from FY 2008 to FY 2009. Sixty-six percent of all pending FBI mortgage fraud investigations during FY 2009 involved dollar losses totaling more than $1 million. FBI mortgage fraud-related FinCEN SAR filings increased…(read more)
The Mortgage Bankers Association (MBA) today released its Weekly Mortgage Applications Survey for the week ending June 11, 2010. The Mortgage Bankers Association application survey covers over 50% of all US residential mortgage loan applications taken by mortgage bankers, commercial banks, and thrifts. The data gives economists a look into consumer demand for mortgage loans. In a low mortgage rate environment, a trend of increasing refinance applications implies consumers are seeking out a lower monthly payment which can increase disposable income and consumer spending (or give consumers a chance to pay down other debts like credit cards). A falling trend of purchase applications indicates a decline in home buying interest, a negative for the housing industry and the economy as a whole. Excerpts…(read more)
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