Compliance & Regulation

During the past two years lenders and mortgage insurers have added tougher underwriting requirements than those of Fannie Mae and Freddie Mac. Now Fannie is eliminating one type of "overlay."

The Securities and Exchange Commission approved a rule making it easier for shareholders to replace directors — a highly controversial move that could shake up board elections at many U.S. companies, including depositories and mortgage firms.

Mortgage rates fell to the lowest level in decades for the ninth time in 10 weeks with the average rate for a 30-year fixed-rate loan bottoming out at 4.36% for the period ending August 26, according to Freddie Mac.

It would be easier for underwater borrowers to utilize the Home Affordable Refinancing Program if Fannie Mae, Freddie Mac and banks drop their fees on these refinancings, according to the Amherst Securities Group.

The Rural Housing Service is telling lenders that in mid-September it will begin processing and guaranteeing loans that were originated with conditional commitments once it completes an "interim enhancement to its electronic systems."

To elaborate further on recent HUD withdrawals of mortgagee approvals: Approval of a mortgagee by HUD/FHA to participate in FHA mortgage insurance programs includes an Origination Approval Agreement between HUD and the mortgagee. Under the Agreement the mortgagee is authorized to originate single-family mortgage loans and submit them to FHA for insurance endorsement.

Mortgage fraud is not going away any time soon. The FBI has been working with bureaus of investigation in states that recently passed residential mortgage fraud acts to stay abreast of the latest fraud tactics.

The Federal Reserve Board's compensation rule is expected to reduce the use of yield-spread premiums, but that doesn't seem to bother the mortgage brokers.

It took just one sentence in the 2,300-page financial reform law to end federal preemption for mortgage lenders that operate as subsidiaries of national banks.

While the call for the creation of a catastrophic insurance fund for mortgage-backed securities has been gaining ground in recent weeks, two leading Federal Reserve Board economists are poised to push the concept one step further, suggesting a backstop for all asset-backed securities.