Congress will have to appropriate $1.4 billion to keep the Federal Housing Administration operating after Sept. 30 if House and Senate conferees don't agree to allow the FHA to implement risk-based premiums and stop downpayment assistance on FHA loans, according to Housing Secretary Alphonso Jackson. The secretary says in a letter that the Department of Housing and Urban Development "strongly supports" a provision in the Senate's FHA reform bill that prohibits seller-financed downpayment assistance on FHA loans. He also stresses the need for the FHA to price its loans by risk and opposes the restrictions on risk pricing in the House FHA bill and the 12-month moratorium on charging risk premiums in the Senate bill. Regarding loan limits, the secretary says he prefers raising the FHA ceiling from $362,790 to $417,000. HUD does not support raising the maximum to $729,750 on a permanent basis, as provided in the House bill and temporarily in the economic stimulus bill that Congress just passed. The Feb. 11 letter stakes out HUD's position in advance of a conference where House and Senate banking committee members will iron out the final FHA reform bill.
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The Senate passed a bipartisan housing package, which includes certain community bank provisions, in an 85-5 vote. The House is set to vote on the package Wednesday.
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Ralo uses artificial intelligence to automate the entire process, saving consumers money by cutting out commissioned loan officers, processors and underwriters.
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Part of the proposal affects the risk weighting for certain "investment properties and other cashflow-dependent" mortgages, according to a new Pennymac report.
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William Isaac led the Federal Deposit Insurance Corp. through the banking and thrift crises of the 1980s and was a frequent commentator on bank regulation after his time in public service.
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The longtime Federal Reserve chair served under four presidents and presided over the deregulatory and pro-market push of the 1990s and early 2000s that set the stage for the 2008 mortgage crisis.
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Life insurers have offloaded long-term policyholder liabilities into offshore reinsurance and captive subsidiaries, raising concerns over state oversight of opaque investment vehicles and whether insurers have adequately funded claims.
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