HUD's Office of Inspector General is alleging that a net branch of a California lender engaged in predatory lending by charging excessive points, fees, and interest rates on Federal Housing Administration loans.An OIG audit of the Downey branch of Guild Mortgage Co. found that loan officers charged discount points on nine loans without reducing the interest rate on the loan. "In our opinion, these were unearned fees and a violation of Section 8 of the Real Estate Settlement Procedures Act," the audit report says. GMC, based in San Diego, denied the allegations of predatory lending and pointed out that the sellers paid the closing costs and points. "FHA does not regulate or prohibit fees paid by the seller," GMC senior vice president Linda Maguire told MortgageWire. The Department of Housing and Urban Development's OIG auditors also found evidence that 16 of the 40 loans reviewed involved property flips or straw buyers. GMC realized there were problems at the Downey branch and closed it two years ago. "We are confident that once HUD has a chance to review both the OIG report as well as Guild's [39-page] response, it will agree that the findings in the [OIG] report lack support," Ms. Maguire said.
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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.
April 18 -
The government mortgage-bond guarantor will require additional information on foreclosure prevention actions, and retire some forbearance reporting.
April 18 -
But views are split, at least in the near-term on whether rising mortgage rates are holding back the Spring home purchase season.
April 18 -
The top five producers had an average dollar volume of FHA loans of more than $50 million in 2023.
April 18