National Mortgage News - August 2018

Post-crisis measures made it harder for rogue borrowers and employees to commit fraud. Now, a new threat has emerged from scammers posing as title agents, real estate professionals and more.

Fraudsters can track a home sale from the moment it goes on the market until the deal closes, make these transactions a ripe target for business email compromise scams that seek to intercept wire transfers and steal from legitimate participants in a deal.

Wire fraud committed through business email compromise schemes has emerged as a serious threat to mortgage and real estate transactions. Defending against these scams requires a comprehensive strategy that includes technology, training and nonstop vigilance.

Commercial real estate is their bread and butter, but many banks are scaling back in this vital loan category. Here’s why.

Brian Montgomery is examining why the reverse mortgage program has suffered big losses, but he said he opposes any changes that could make it harder for the elderly to stay in their homes.

A Fannie Mae test to handle the private mortgage insurance process for lenders may raise concerns that it's going outside the scope of its secondary market mission. But the effort reflects its mandate to explore new credit-risk transfer alternatives, a company executive said.

Fannie Mae and Freddie Mac enjoy considerable advantages because of their lower cost of capital and significant government subsidies. But with some conforming loans, the private market is finding a way to compete.

Servicers and MSR investors face increased regulation and oversight as nearly all states now require some form of licensing for firms responsible for mortgage collections.

Paycheck information gleaned from bank accounts is emerging as an alternative to verifying a mortgage applicant's income and employment with a 4506-T tax transcript request to the IRS.

Ginnie Mae is looking to start a pilot program to securitize digital mortgages as early as 2019, but issuers would not be able to commingle loans using traditional paper files in those deals.

A more conservative court will be likelier to rule favorably on issues ranging from the deference for regulatory agencies to what constitutes a fair-lending violation.

The Royal Bank of Scotland is paying $20 million to settle an investigation by the Illinois attorney general related to the bank's marketing and sale of residential mortgage-backed securities.

The fees that Fannie Mae and Freddie Mac charge for low down payment mortgages disproportionately reflect their risk exposure and make homeownership more difficult for underserved borrowers.

Mortgage industry hiring and new job appointments for the week ending Aug. 3.

Purchasing power took a plunge in some of the nation's hottest housing markets, as a competitive spring purchasing season continues to drive home prices higher.