The Federal Housing Administration could have hundreds of thousands of subprime borrowers if Congress passes an FHA reform bill, but if not, the agency will raise its mortgage insurance premiums, Housing Commissioner Brian Montgomery has told Senate appropriators.As a fallback position, the FHA commissioner testified that he will raise the FHA upfront premium from 150 basis points to 166 bps and its annual 50-bp premium by a few basis points. Sen. Christopher Bond, R-Mo., warned the commissioner that he is skeptical that the reforms will increase FHA revenues, and he doubts that the Department of Housing and Urban Development could implement the reforms fast enough to avoid a premium increase in fiscal year 2008. "As you know, HUD does nothing quickly," Sen. Bond said. Mortgage Bankers Association chairman John Robbins said the FHA could quickly regain a 10% market share if the reforms are passed, which would generate $3 billion in new revenues. Sen. Patty Murray, D-Wash., chairman of the Senate HUD appropriations subcommittee, said, "We need to work to make sure the FHA is strong and effective." However, she said she does not want the FHA to adopt risky subprime practices such as no-downpayment loans.
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Doxo plans to fight the FTC complaint, which focuses broadly on consumer finance, but there are signs of confusion about the company's role in mortgages too.
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Members of the LGBTQ community were most likely to have experienced housing bias, according to a Zillow survey, which also found many people don't recognize how fair lending laws could help.
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Senior executives making over $151,000 would still be subject to such clauses should the rule go into effect this year.
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Christopher J. Gallo and his aide, Mehmet A. Elmas, allegedly withheld information in mortgage applications, hiding that borrowers were purchasing second home properties.
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Mortgage rates rose 7 basis points this week, Freddie Mac said, and more increases are likely following a weaker than expected gross domestic product report.
April 25 -
Independent mortgage bankers lost the most money ever on every loan originated last year due to higher rates and lower volumes, an industry trade group said.
April 25