The Federal Housing Administration is experiencing a major surge in business from homeowners with conventional loans refinancing into FHA products and the agency suspects a large majority of these borrowers are escaping high cost subprime loans.FHA refinanced 60,400 conventional loans in fiscal year 2006, up 80% from FY 2005 and this trend is accelerating. During the first seven months of FY 2007, FHA refinancings of conventional loans jumped 84% compared to the same period in the last fiscal year. As of April 30, FHA had refinanced 51,349 conventional loans. "In today's mortgage environment, it is safe to say that a significant portion -- we conservatively estimated 60% -- are subprime loans," FHA commissioner told a mortgage conference recently. The commissioner has been meeting with housing counselors and lenders to promote FHA as an affordable option for subprime borrowers. The Bush administration also is urging Congress to pass FHA reform legislation that would allow more subprime borrowers to qualify for FHA-insured single-family loans.
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According to the Federal Reserve Board's latest financial stability report, persistent inflation and policy uncertainty are the primary worries for banks. Survey respondents expressed heightened anxiety over murky policy outlooks due to geopolitical turmoil and rapidly approaching domestic elections.
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Leaders of ORNL Federal Credit Union are piloting Zest AI's new artificial intelligence-powered assistant to ensure equitable underwriting practices and measure performance against similar institutions.
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McCargo stabilized the agency at a crucial time as she helped navigate it through both a pandemic and subsequent dramatic interest-rate cycle change.
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The quasi-public entity's plan to buy certain closed-end seconds would constitute "unnecessary government encroachment," the Structured Finance Association said.
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The mortgage subsidiary of Hilltop Holdings posted another quarterly loss and volume slipped, but management also sees signs of optimism.
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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.
April 18