Lead Story
Wells Wants FHA Minimum Even Higher
By Paul Muolo
As early as next week the Federal Housing Administration will release its final rule on net-worth minimums for its lenders, setting the stage-perhaps-for a battle with nonbanks that can't meet the initial $1 million requirement, which will grow to $2.5 million within three years.
It's no secret that for thinly capitalized firms playing in both the FHA and government-sponsored enterprise markets, the writing is on the wall: raise more money or find some type of way to survive, either by joining an adequately capitalized nonbank or even a bank (or a net branch operation).
The FHA is tightening the screws because it desperately wants to stem losses at its beleaguered insurance fund, driving what's left of the industry's "bad guys" and weaker (financially) firms out of the business. But there's also a school of thought here that FHA is making these and other changes to intentionally reduce the number of lenders it has to manage.
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Last updated: March 12, 2010
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The pace of permanent Home Affordable Mortgage Program loan modifications is now averaging roughly 50,000 a month with the cumbersome government program finally getting its legs.
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Moody's Investors Service has placed 40 RMBS re-securitization tranches with a current outstanding balance of $500 million on watch for possible downgrade.
Click here for more...Stung by warehouse lines it made to the now-defunct Taylor, Bean & Whitaker, Ocala, Fla., Sovereign Bank of Pennsylvania has decided to exit the sector, according to warehouse lending officials and customers that received credit from the bank.
Click here for more...The Federal Deposit Insurance Corp. has extended its "safe harbor" policy for six months while its board continues to work toward the adoption of new securitization standards.
Click here for more...The Obama administration is working on a national program to address negative equity, but first it wants to test existing programs managed by state housing finance agencies.
Click here for more...Mortgage bankers funded roughly $414 billion of new home loans in the fourth quarter, the industry's worst quarter of the year and an indication that production -- as anticipated -- will be weaker in 2010.
Click here for more...GMAC Mortgage LLC's corrective actions related to an unusual servicing practice that could hurt ratings on nearly $6 billion of RMBS it services are scheduled for completion by April 1, according to a Moody's Investors Service report.
Click here for more...GMAC Financial Services has hired Goldman Sachs to start the process of selling the company's money-losing mortgage unit Residential Capital Corp., according to a new published report.
Click here for more...Mortgage vendor Lender Processing Services Inc. is requesting nearly $3 million in city and state incentives to add 350 full-time jobs in Jacksonville, Fla., according to a report in the Jacksonville Business Journal.
Click here for more...Kevin Jackson, previously a director in convexity products at Bank of America Merrill Lynch, will be joining Wells Fargo Securities as part of the firm's efforts to bolster its residential financing, origination, and trading activities.
Click here for more...The Federal Deposit Insurance Corp. sold $1.37 billion of structured guaranteed notes backed by residential and construction loan assets from Corus Bank.
Click here for more...Fitch Ratings, Chicago, believes that the title industry's 2010 revenue decline could range between 10% and 15%, based on the projected fall-off in mortgage origination volume.
Click here for more...Morgan Keegan & Co., Memphis, Tenn., will market Farmer Mac loan programs designed specifically for its bank clients which hold agricultural loans in their portfolios.
Click here for more...Video of the Day
| Rick Sharga, executive vice president for marketing at RealtyTrac Inc., talks with Bloomberg's Lori Rothman and Mark Crumpton about U.S. foreclosure filings, which rose at the slowest pace in four years in February. Sharga also discusses the outlook for the U.S. housing market. (Source: Bloomberg) |
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National Mortgage News presents Mortgage Focus, a video library of hot topics addressed by mortgage industry experts. Topics include servicing, government mortgage plans, refis, loan mods, technology, REO and more.
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Boy Are Lenders Slow Sometimes, OK All The Time
"Despite a drastically changing market, lenders are still showing that they are slow to adopt technology as a whole," says Anthony Garritano in his Trend Watch column.
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Other Voices
This story is from our sister publication, American Banker
FHA: No Need for Down-Payment Hikes
Washington - Federal Housing Administration Commissioner David Stevens defended the agency's plans to rebuild its capital reserves without across-the-board down-payment increases.
Testifying at a hearing of a House Financial Services subcommittee Thursday, Stevens rebuffed calls for the FHA to raise its minimum down payment to 5%, saying the move would reduce FHA-backed loan volume by 40% and disqualify 300,000 first-time homebuyers.
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Do not file your FHA/HUD audit too soon or it may be wrong warns Herman Thordsen in his latest Legal Corner blog post.


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Joseph Murin, managing director, The Collingwood Group, Washington, and former president and CEO of Ginnie Mae


