The Department of Housing and Urban Development has rolled out an automated lender monitoring system know as "Credit Watch" that will target problem Federal Housing Administration lenders."Credit Watch will identify lenders in the FHA program with problems and will allow us to remove the worst performers -- in the same way a school can expel a student who flunks out," HUD Secretary Andrew Cuomo said. Credit Watch focuses on FHA lender branch offices, which are originating loans with high default and claim rates during the first 24 months of the loan's life. Branch offices with default and claim rates three times the area average will be notified of their termination and right to appeal. Twenty to 30 lenders are expected to receive the first termination letters in June. Lenders with default and claims rates about two times the norm will be placed on Credit Watch and under probation for 18 months. These lenders can still originate loans, but they will be closely monitored. "HUD is doing what it needs to do in order to police the quality of loans that it insures," said Steve O'Connor, senior director for residential finance at the Mortgage Bankers Association of America. HUD's website address is http://www.hud.gov.
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In its latest financial stability report, the Federal Reserve found that asset prices continue to exceed underlying fundamentals and leverage levels remain high, especially by hedge funds.
April 25 -
The Long Island-based regional bank, which reported another quarterly loss Friday, continues to hire in the commercial-and-industrial lending sphere as it seeks to diversify its commercial real estate-heavy business.
April 25 -
The lender's parent also said it is actively in preparation to move forward on plans to unlock equity value in 2025, with a Newrez spinoff among its options.
April 25 -
Doug Duncan may be retired from Fannie Mae, but not from the housing market—his new firm is ramping up with writing, speaking, and advisory work.
April 25 -
The way mortgage firms address distressed military borrowers will become less regimented as the Veterans Affairs Servicing Purchase program gets phased out.
April 25 -
The trend is not the norm but there are growing opportunities to buy for less in some areas many people gravitate to, real-estate brokerage Redfin found.
April 24