New York Times, July 15, 2018–Matthew GoldsteinThe foreclosure machine that ground to a halt in Puerto Rico after the devastation caused by Hurricane Maria in September is slowly cranking up again. Island residents who fell behind on their payments are facing creditors ranging from Wall Street to the federal government.
Category: Top National News
Why Fannie and Freddie May Need More Treasury Bailout Cash
National Mortgage News, July 12, 2018–Brad Finkelstein (subscription)Fannie Mae and Freddie Mac may be forced to take draws from the U.S. Treasury again, this time due to an accounting rules change for loan-loss reserves.
FHA: Life of Loan Policy to Remain, But Agency Considering Options
HousingWire, July 12, 2018–Ben LaneEarlier this week, new FHA Commissioner Brian Montgomery told a group of reporters that there likely won’t be a cut to the FHA’s mortgage insurance premiums this year, due to the health of the Mutual Mortgage Insurance Fund, the FHA’s flagship insurance fund. And according to Montgomery, the agency is not planning on making any changes to its life of loan policy this year, either.
Many Loan-Mods Don’t Hold
UExpress, July 13, 2018–Lew SichelmanMortgage giants Fannie Mae and Freddie Mac helped “save” more than 68,000 borrowers from foreclosure in this year’s first quarter by modifying their loans so the payments are more affordable. But according to another report from a well-respected real estate analyst, you sometimes can’t even help those you’ve already helped.
A Decade On, Pre-Crisis Mortgages Linger for Big Banks, Homeowners
Reuters, July 12, 2018–Elizabeth DiltsA decade on big U.S. banks are still running down and selling off crisis-era mortgages, a process executives point to as weighing on loan growth.
A Farewell to ARMs? Americans Still Shunning Adjustable-Rate Mortgages 10 Years After the Crisis
MarketWatch, July 9, 2018–Andrea RiquierAs the financial crisis gathered steam, Americans fled adjustable-rate mortgages. The share of all mortgage applications with floating rates sank below 1% in late 2008. A decade later, their share still remains low: 6% in early June, according to the Mortgage Bankers Association, versus an average of about 20% in the ten years before 2008.
Fannie’s Take on Paying for PMI Seeks to Avoid ‘Charter Creep’ Criticism
National Mortgage News, July 10, 2018–Brad Finkelstein (subscription)A Fannie Mae test to handle the private mortgage insurance process for lenders may raise concerns about charter creep, but the effort reflects its mandate to explore new credit-risk transfer alternatives.
FHA False Claims Actions Among Industry Concerns
Mortgage Daily, July 11, 2018Genworth Mortgage Insurance reported 44 percent of industry executives polled at the recent MBA National Secondary Market Conference believe removing legal uncertainty surrounding the origination of loans insured by the Federal Housing Administration is the best way to improve access to mortgage credit.
Trump Administration Says Task Force Will Fight Consumer Fraud
Wall Street Journal, July 11, 2018–Yuka Hayashi (subscription)Trump administration officials on Wednesday promised to maintain a focus on fraud against consumers, particularly the elderly and service members, using the resources of several regulatory and law-enforcement agencies.
FHA Commissioner: Mortgage Insurance Premium Cut Not Likely in 2018
HousingWire, July 10, 2018–Ben LaneFHA Commissioner Brian Montgomery said Tuesday that while it’s probably “too early to commit to anything,” it’s unlikely that the FHA will reduce its mortgage insurance premiums this year, citing the most recent FHA actuarial report.