Tag Archives: FHA

In a testimony before the Senate Banking Committee on Thursday, HUD Secretary Shaun Donovan defended the Federal Housing Administration's (FHA) recent role in the housing market and the steps the agency has taken to avoid a possible bailout. In an annual report issued to Congress in mid-November, HUD revealed the capital reserve ratio of FHA's Mutual Mortgage Insurance (MMI) Fund had fallen to -1.44 percent (representing -$16.3 billion) based on data from an independent actuary.

A controversial bill that would extend an increase on guarantee fees (g-fees) on mortgages backed by the GSEs or the Federal Housing Administration (FHA) has passed in the House of Representatives. The bill, H.R. 6429 (STEM Jobs Act of 2012), proposes reforms for immigrant visas offered to immigrants who possess advanced training in science, technology, engineering, or mathematics. A section added to the bill calls for a one-year extension of g-fee hikes to help pay for the program, changing the end date on the fee increases from October 2021 to October 2022.

Prospect Mortgage, LLC, announced the appointment of Michael J. Williams, former president and CEO of Fannie Mae, as chairman of its board of directors. Prospect Mortgage is a top-10 originator of home purchase loans, offering conventional, jumbo, super-jumbo, Federal Housing Administration, and Veterans Affairs mortgages as well as home renovation loans.

Prospect Mortgage, a provider of home renovation and purchase financing, announced it is offering two loan programs to help homeowners impacted by Hurricane Sandy rebuild their lives. The programs, backed by the Federal Housing Administration (FHA), provide funding beyond insurance or other disaster assistance by offering financing for owners in declared disaster areas to repair or rebuild their homes or even to purchase a new home if necessary.

Mortgage origination was up in the third quarter, and it looks like there's a little more room at the top.

The state of the housing market continues to improve though recovery remains fragile, according to the October Housing Scorecard released Friday by the Obama administration. Along with the scorecard, the administration released special instructions for those administering the Making Home Affordable Program in areas affected by Hurricane Sandy. In areas directly impacted by Hurricane Sandy, servicers must offer at least three months forbearance to any homeowners eligible for Making Home Affordable who request forbearance.

Government agencies are continuing their regulatory investigation of mortgage activities at Wells Fargo and Wachovia, according to a report filed with the Securities and Exchange Commission (SEC). Wells Fargo absorbed Wachovia in 2008 when Wachovia's shaky mortgage portfolio threatened the bank's soundness. The government is looking into activities regarding mortgage origination and securitization, including risk disclosures at Wachovia.

Mortgage activity was down last week, dropping 11 percent from the previous week and by almost one-third from the same week last year.

The U.S. government is violating the terms of the national mortgage settlement with its lawsuit against Wells Fargo, attorneys for the bank argue. In a motion filed in a U.S. District Court, attorney Douglas Baruch says the settlement "wiped the slate clean for Wells Fargo in terms of facing any further liability to the United States (except in carefully crafted, narrow circumstances) for a wide range of Wells Fargo conduct relating to the bank's Federal Housing Administration (FHA) mortgage loan portfolio, among other areas."

Wells Fargo has issued thousands of refund checks to customers who paid unnecessary mortgage fees, according to a report from the Los Angeles Times.