The Department of Housing and Urban Development has initiated a rulemaking process to crack down on downpayment assistance programs that have bolstered Federal Housing Administration single-family loan originations but also led to rising FHA defaults and foreclosures, according to the HUD inspector general."We are just happy that this thing is going forward on downpayment assistance," HUD IG Kenneth Donohue told MortgageWire. The HUD IG has been critical of the DA program for several years because it allows builders and sellers to funnel cash assistance through nonprofit groups to homebuyers. The sellers usually recoup the assistance through inflated property prices or fees. Mr. Donohue said he could not discuss specifics about the proposed rule, which is currently being reviewed by the White House Office of Management and Budget. However, the current DA program -- in the way it was designed and applied -- should be eliminated, Mr. Donohue said.
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Government officials confirmed the California Democrat is under scrutiny over a long-held Maryland property he designated as a second home in 2020.
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Credit availability declined in June as the job market and rising delinquency figures have some lenders concerned, the leading mortgage trade group said.
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The Ocean State is the latest to enact rules prohibiting the agreements that end up tying older homeowners to long-term contracts with real estate brokers.
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CEO Robin Vince refused to comment on "rumors or speculation" about a potential merger between the custody banking giant and its smaller rival, Northern Trust. He also said that the bar for BNY to engage in M&A is "very high."
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House Financial Services Committee Chairman French Hill promised to begin combing through Dodd-Frank to find areas for deregulation, while the panel's ranking member made it clear that Democrats would fight for the Consumer Financial Protection Bureau.
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Gain on sale at JPMorgan Chase fell by 5 basis points in the second quarter, which could be a slightly adverse sign for mortgage banker results, KBW said.
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