A reduction in the origination fee on Federal House Administration-insured reverse mortgages could discourage lenders from offering the product and crimp the program's growth, according to a Congressional Budget Office cost estimate of the FHA reform bill (H.R. 1852).The CBO estimates that the FHA would endorse about 110,000 home equity conversion mortgages in fiscal year 2008 if the reform bill is enacted, and HECM originations would grow at about 2%-4% annually. Last year, the CBO estimated that the FHA could see HECM originations jump to 160,000 loans in a few years. But that was before an amendment to reduce origination fees was attached to H.R. 1852 during a committee mark-up. "A lower origination fee could increase the program's attractiveness to some borrowers, assuming lenders do not increase interest rates significantly to compensate for lower origination fees," the CBO says.
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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.
5h ago -
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.
10h ago -
The share of economists expecting a September rate reduction grew in the July Wolters Kluwer survey, but the October or later percentage also increased.
10h ago -
Rising home prices and softening sales offer a mixed view of a market that some say is shifting to favor buyers.
11h ago -
The notes are backed by home improvement installment loans originated by approved dealers in Foundation Finance Company's network.
11h ago