Consumer groups are reminding the Department of Housing and Urban Development that RESPA reform also means regulating mortgage broker compensation so that consumers know up front how much they are paying the broker in a loan transaction.The yield-spread premiums that brokers receive from wholesale lenders are simply "kickbacks," which Congress "sought to forbid" when it enacted the Real Estate Settlement Procedures Act 30 years ago, according to a letter by seven consumer groups. To curb "abusive" YSPs, HUD should require brokers to enter into a written agreement with the borrower that discloses the broker's total compensation. In addition, the April 6 letter to HUD Secretary Alphonso Jackson says borrowers should be given choices regarding how they will pay that fee at closing. HUD officials are working on a RESPA reform proposal, which might be issued for public comment this summer. The National Association of Mortgage Brokers opposes YSP disclosures unless lenders are required to disclose the back-end fees (gain-on-sale margins or servicing-release premiums) they receive in loan sales.
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The increasing frequency and severity of droughts was top of mind for panelists at AmeriCatalyst's "Going to Extremes" conference Thursday.
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In a Senate hearing, Director Sandra Thompson said a raise to the required income threshold provided to affordable housing was on the table, while housing regulators also faced questions related to property insurance hikes and title insurance waivers.
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The nonpayment rate for non-qualified mortgages is up 21 basis points from February and 134 basis points from March 2023, Morningstar DBRS said.
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The government mortgage-bond guarantor will require additional information on foreclosure prevention actions, and retire some forbearance reporting.
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But views are split, at least in the near-term on whether rising mortgage rates are holding back the Spring home purchase season.
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The top five producers had an average dollar volume of FHA loans of more than $50 million in 2023.
April 18