For the week of May 14, 2012

Compiled by Rick Grant & Associates

 

 

 

Industry News/Trends:

 

 

Mortgage Industry Standardizes on RPost for E-Signatures ...

by Marketwire

These home and commercial mortgage brokers now have, built into their business ... the email was delivered with encryption and electronic signature options.

 

BofA initiates home loan modification offers - Lowell Sun Online

LOS ANGELES—Bank of America says it has begun contacting some its customers who may qualify to have their home loans reduced as part of a multistate ...

 

Overhaul of Consolidated Planning Process Planned bu HUD

by LoanSafe

The online Consolidated Plan template is designed to guide grantees through an intuitive planning process driven by the same data the public can access in CPD Maps . Completed plans will be posted on HUD's website in a standard format to allow grantees ...

 

CFPB Quietly Names MERS Critic To Enforcement Unit

by Mortgageorb

by MortgageOrb.com on Thursday 10 May 2012 The Consumer Financial Protection Bureau (CFPB) has quietly named a longtime critic of the Mortgage Electronic ...

 

 

Legislative Update:

 

Will the CFPB Kill the Mortgage Recovery?
By Paul Muolo

Is the mortgage industry in the throes of what might turn out to be a lengthy and profitable recovery? Let's look at the signs: Fannie Mae just posted a hefty profit, Freddie Mac has earned money on an operating basis for at least two quarters in a row, many lenders are enjoying strong profit margins and the HARP program appears to be humming along. Optimists might have reason to pop some champagne.

 

CFPB to Nonbanks, Brokers: Drop Dead
By Paul Muolo

Once again the government is taking out the mortgage crisis on nonbanks, their loan officers and mortgage brokers. On Monday National Mortgage News will publish a more detailed story about the mess, but suffice to say there are many things that rankle nonbanks concerning the Consumer Financial Protection Bureau's new mortgage compensation rule

 

CFPB Proposal Seeks to Simplify Points and Fees for Borrowers
By Brian Collins

The Consumer Financial Protection Bureau is considering the use of its special regulatory powers to blunt certain provisions in the Dodd-Frank Act that would ban consumers from paying upfront fees -- such as discount points or origination fees, when the loan officer is being compensated on the back-end by the buyer or table funder.

 

CFPB Hires Outspoken Critic of MERS and Payday Lending
By Jeff Horwitz

The Consumer Financial Protection Bureau hired Chris Peterson, adding a formidable critic of mortgage securitization practices and payday lending to the young agency's staff.

 

CFPB Pursues Screening Standards for Mortgage Originators

The Consumer Financial Protection Bureau unveiled new rulemaking proposals Thursday that would require background checks for mortgage originators and complement a previous rule that prohibits loan officers from steering borrowers to higher-priced products. Together with these rules, others would provide consumers with discounts for paying mortgage origination points, mandate comparison plans for those interested in tracking different products, and ban brokerage firms from charging fees that vary by the loan size.

 

 

GSEs

 

In California, GSE-Backed Loans to Accept Funds for Reducing Principal

Due to one important adjustment, Fannie Mae and Freddie Mac might start accepting funds to be applied toward principal reduction in California. The Keep Your Home California program once required participants in its principal reduction program to match funds it provided towards reducing principal. Recently, housing finance agency officials from the state announced a decision to no longer require lenders to match the funds the program providesthe L.A. Times first reported.

 

GSE, Ginnie Mae Executives Tackle a Tricky Balance in Secondary
By Bonnie Sinnock

A Fannie Mae executive said while refis could decline a bit year-over-year, there could be a small increase in purchases.

 

Freddie: Fixed-Rate Mortgages Still the Goal
By Brad Finkelstein

For almost 95% of mortgage borrowers who refinanced in the first quarter, staying in or moving to a fixed-rate product was the goal, and even hybrid adjustable-rate mortgages lost market share in the rush to FRMs.

 

Freddie Mac Appoints Private Sector Banking Exec to CEO Post

Freddie Mac said Thursday that its board of directors has selected Donald H. Layton to serve as the company's new CEO. Layton will join the GSE on May 21, and will also have a seat on the board of directors. In October 2011, the Federal Housing Finance Agency announced that Charles E. Haldeman, Jr. had informed Freddie Mac's board of his desire to step down within the year. Haldeman served as the GSE's CEO since August 2009. Layton has had a long career in the private banking and financial services sectors. He worked for nearly 30 years at JPMorgan Chase and its predecessors and more recently, served as chairman and CEO of E*Trade Financial.

 

 

HUD

 

HUD Bans Reverse Mortgage Scammers
By Evan Nemeroff

The Department of Housing and Urban Development indefinitely barred three Florida loan officers and a Pittsburgh title agent following their criminal convictions for defrauding elderly borrowers, mortgage lenders and the Federal Housing Administration.

 

HUD Reaches $202M Settlement With Deutsche Bank

HUD announced Thursday that it reached a $202 million settlement with Deutsche Bank and Mortgageit over allegations of misconduct and false certifications with a government lender program. The agency said that Mortgageit acknowledged and accepted responsibility for false certifications it submitted to HUD in order to gain from a direct lender program under the Federal Housing Administration. For its part, Deutsche Bank admitted wrongdoing by failing to account for Mortgageit's activities when personnel with the financial institution were in a place to know about them.

 

HUD: 3 bills will complete Obama refinancing initiative

Three bills intended to increase homeowner refinancing were introduced this week by Democratic senators — bills that HUD Secretary Shaun Donovan said are “a win, win, win and something that we think can gain real bipartisan support very quickly and get passed.”

 

 

FHA

 

Valuations, Contractor Networks and FHA
By Bonnie Sinnock

While speed to market is important in REO sales, accelerating turn times or lowering costs too much for valuations compromises the product.

 

Production at FHA Falls to Preserve its Reserves
By Brian Collins

The Federal Housing Administration's single-family program is facing headwinds as the HUD secretary tries to keep the insurance fund above water and appease critics who want to reign in government programs.

 

Deutsche Bank settles FHA suit for $202.3 million

The government’s suit alleged that a Deutsche Bank subsidiary, MortgageIT, led a “decade of misconduct” in the FHA program, according to the U.S. Attorney for the Southern District of New York.

 

 

HAMP/HAFA/HARP

 

HAMP Changes Can Expand Eligibility to More Military Members

Starting June 1, military homeowners who are permanently displaced by a job-related move may still be able to be considered owner-occupants when applying for the Home Affordable Modification Program (HAMP). This change means more people could become eligible for the government's modification program to assist struggling homeowners.

 

HAMP mortgage modifications down 33% from last year

HAMP modifications declined significantly from one year ago as the inventory of eligible loans shrinks. The Treasury will have estimates for its expanded program in June.

 

HARP Means Savings, Less Debt for Homeowners: Freddie Mac

More homeowners continue to reap benefits from the newly modified Home Affordable Refinance Program, with 79 percent of homeowners with government-backed mortgages either keeping the same level of mortgage debt as before or reducing it over the first quarter. Of those homeowners, Freddie Mac found recently, 79 percent held onto the same level of debt for first-lien home mortgages, while 21 percent of homeowners shaved off dollars from their principal balance. The share of borrowers keeping their original loan amounts hovered at the highest level in the 26-year history of the survey.