A legislative proposal that would allow the Federal Housing Administration to use risk-based pricing is expected to be included in the president's fiscal year 2007 budget, sources have told MortgageWire.The proposal would authorize the FHA to adjust mortgage insurance premiums on single-family loans on the basis of the borrower's credit score and other risk characteristics. "It would allow FHA to set premiums like all the other mortgage insurers," said one source who did not want to be identified. The Bush administration is expected to unveil the president's budget on Feb. 6. Conceptually, risk-based pricing would help the FHA compete for more creditworthy borrowers while still serving subprime borrowers. The FHA has been losing market share to conventional prime and subprime lenders for some time. In fiscal 2005, FHA mortgage insurance endorsements dropped by 46% to $62.3 billion. The FHA has a 20% share of the mortgage insurance market.
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A federal judge in Texas dismissed the Consumer Financial Protection Bureau's medical debt rule and prohibited states from passing their own laws prohibiting medical debt on credit reports.
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Dr. Mark Calabria takes on the additional role of chief statistician of the United States; retired Ally Bank executive Diane Morais has joined First Citizens Bancshares' board of directors; MainStreet Bank has promoted Alex Vari to chief financial officer; and more in this week's banking news roundup.
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While refinances are behind the latest increases, the pace of purchase activity may be a stronger indicator of where the housing market sits.
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The share of economists expecting a September rate reduction grew in the July Wolters Kluwer survey, but the October or later percentage also increased.
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Rising home prices and softening sales offer a mixed view of a market that some say is shifting to favor buyers.
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The notes are backed by home improvement installment loans originated by approved dealers in Foundation Finance Company's network.
10h ago