In preparation for a vote on Federal Housing Administration reform bill, Senate Banking Committee leaders have agreed to cut the FHA 3% downpayment requirement in half, to 1.5%, but only allow upfront mortgage insurance premiums to be financed into the loan amount.The loan-to-value ratio cannot exceed 100%, which means the FHA borrower or seller has to pay the closing costs. However, the interest rate on the loan can be increased to cover closing costs. According to sources, the FHA bill, which the committee is scheduled to mark up on Wednesday, is "silent" on the issue of charging risk-based premiums. Key senators decided to drop a provision in an earlier version of the bill that would have restricted the mortgage insurance agency from setting premiums based on credit scores. The Senate bill would also raise the FHA loan limit to $417,000 in high-cost areas.
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The massive mortgage business saw a first quarter profit mitigated by nearly $300 million in hedging losses.
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The Consumer Financial Protection Bureau has seen excessive property-inspection charges, fees that loan mods should eliminate and improper line-item labels.
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Michael Tannenbaum, whose experience in the financial services industry spans over 15 years, has a track record of helping companies scale and grow.
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A majority of consumers earning more than $100,000 annually said they were concerned about their own ability to purchase a home, demonstrating how affordability issues are impacting those at many socioeconomic levels, the University of Michigan study found.
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The nonbank's results add to other indications that the first quarter's "higher for longer" rate scenario had an upside for efficient servicing operations.
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The latest rate increases contributed to a 1% drop in purchases from the previous week and 15% annually, according to the Mortgage Bankers Association.
April 24