National Mortgage News, Aug. 2, 2019–Elina Tarkazikis (subscription)Mortgage loans sold through HUD’s Distressed Asset Stabilization Program- mainly to private equity firms -are more likely to result in foreclosure than unsold loans, according to the GAO report.
Category: Top National News
Wells Fargo to Tech Vendors: Please Send Us a Check
Wall Street Journal, Aug. 2, 2019–Rachel Louise Ensign (subscription)Wells Fargo & Co., in cost-cutting mode, recently asked outside technology consultants to refund some of the money the bank has spent with them in the past year, saying the vendors benefited from its regulatory problems.
FDIC Chief Warns Banks Could Face Fines for Cyber Breaches
National Mortgage Professional, Aug. 2, 2019–Phil HallFDIC Chair Jelena McWilliams stated that cybersecurity was “something we take very seriously.” She warned banks that they could face enforcement penalties if they allow cybersecurity breaches to impact their data safety.
Ginnie Mae Takes Steps to Squash VA Loan Churning
HousingWIre, Aug. 1, 2019–Jessica GuerinGinnie Mae is taking yet another step to squash abuses, announcing Thursday it is moving forward with a proposal to remove VA-backed cash-out refinances with high loan-to-value ratios from its flagship securities.
Fannie Mae Preparing to Handle Transitions in QM, Mortgage Rates
National Mortgage News, Aug. 1, 2019–Bonnie Sinnock (subscription)Fannie Mae’s current tack could help it weather some of the new challenges confronting it, including the planned expiration of its qualified mortgage rule exemption and rate-driven earnings volatility.
Tax Credits Could Help Foreclosure Victims Buy Homes Again
San Bernardino Sun, Aug. 1, 2019–Jeff LazersonTax credits would be new for mortgage victims, but it’s not unprecedented. CPA Jeff Hipshman of HMWC CPA’s and Advisors points to employment-related tax credits.
HUD Plan Would Raise Bar for Claims of Fair Lending Abuse
National Mortgage News, July 31, 2019–Hannah Lang (subscription)Under a HUD proposal that circulated Wednesday but has not officially been unveiled, a consumer would have to follow a more rigorous five-step framework to demonstrate that discrimination occurred. The “disparate impact” doctrine can be used to punish lenders for discriminatory effects even if none were intended.
Tapping Homes for Cash to Get Tougher Under New FHA Limits
Wall Street Journal, Aug. 1, 2019–Ben Eisen (subscription)The Federal Housing Administration, which insures loans for mostly first-time buyers, plans to announce Thursday it will limit cash-out refinancings in its program. Borrowers will be able to pull cash out only when the new loan amounts to 80% of the value of the home or less, down from 85%.
CMBS Issuance Focuses on ‘Bulletproof’ Retail Loans
National Real Estate Investor, July 31, 2019–Beth Mattson-TeigInvestors are getting increasingly concerned about the outlook for retail-backed commercial mortgage-backed securities 2.0 loans.
OneWest Bank to Cough Up Cash Over Racial Bias Allegations During Mnuchin’s Reign
HousingWire, July 30, 2019–Jessica GuerinOneWest Bank is finally able to put two-year-old allegations of housing discrimination to rest as HUD approved a settlement Monday that will see the bank hand over a chunk of change to end the ordeal.