HousingWire, June 30, 2016–Lane, Ben
Minnesota announced earlier this week that it is fining American Modern Insurance Group $1 million for overcharging Minnesota residents for force-placed insurance.
Category: Top National News
Leno Bill Would Strengthen Family Heirs’ Homeownership Rights
San Francisco Chronicle, July 1, 2016–Gutierrez, Melody
The bill would amend the California Homeowner Bill of Rights to include heirs of homeowners, requiring lenders to work with them to help save their homes from foreclosure. But Pat Zenzola, a lobbyist for the California Mortgage Bankers Association, said the bill is “ripe with the opportunity for additional litigation and potential for mischief.”
FHA Announces Sweeping Changes to Non-Performing Loan Sales Program
HousingWire, June 30, 2016–Lane, Ben
Amidst mounting public pressure to do more to keep struggling homeowners in their homes, HUD and the Federal Housing Administration announced a series of extensive changes to its non-performing loan sale program.
FHFA Report Highlights Results of GSEs’ Nonperforming Loan Sales
National Mortgage News, July 1, 2016–Collins, Brian
The Federal Housing Finance Agency’s first report on the sales of nonperforming loans owned by Fannie Mae and Freddie Mac may seem discouraging at first. Mike Fratantoni, the chief economist of the Mortgage Bankers Association, said Fannie and Freddie have achieved a number of positive results from these sales.
Freddie Mac’s Mortgage Portfolio Sees More Contraction
MReport, July 4, 2016–Honea, BrianHaving already fallen below the cap for 2016 only a third of the way through the year, Freddie Mac’s mortgage-related investments portfolio continued to shrink at the annual rate of 27 percent in May.
Mortgage Servicing Shrinks at Biggest U.S. Banks
Wall Street Journal, July 1, 2016–Witkowski, Rachel
The country’s largest banks have dropped almost half of their mortgage servicing since the financial crisis, with some $2.5 trillion in loans largely moving into the shadow banking system, according to a regulatory report.
Jumbo Mortgages Play Larger Role at U.S. Banks
Wall Street Journal, July 4, 2016–Ensign, Rachel Louise
The jumbo mortgage business keeps getting bigger for banks. These high-dollar home loans rose to 24% of mortgage approvals at six of the largest U.S. banks in 2015 from 21% the year before, according to an analysis of federal home-loan data.
In One Way, the U.S. Mortgage Market Looks Just Like It Did in 2007
National Mortgage News, July 1, 2016–Wack, Kevin
In the first quarter, 94.9% of the residential mortgages serviced by seven big banks were current and performing, according to a report released Friday by the Office of the Comptroller of the Currency. That percentage compared to 94.4% in October 2007, when the OCC first reported the data.
Shaky Alliances Form to Fight Zombie Foreclosures
MarketWatch, June 30, 2016–Riquier, Andrea
Nearly a decade after the subprime crisis, many neighborhoods are still plagued by undead leftovers from the crash. “Zombie foreclosures” are those that have been begun–but not finished–by lenders. As homes sit empty, they invite vandalism, drag down property values and erode municipal tax bases.
Coalition of Nation’s Largest Housing Groups Push for Cuts to Fannie, Freddie Fees
Housing Wire, June 22, 2016–Lane, BenThe fees that Fannie Mae and Freddie Mac charge lenders to guarantee mortgage loans actually serve as a tax on consumers and prevent more potential borrowers from becoming actual borrowers, a coalition of the nation’s largest housing groups including the Mortgage Bankers Association said Wednesday.