The Department of Housing and Urban Development is preparing to issue an "alert" soon that warns Federal Housing Administration lenders about paying "excessive" fees to non-FHA-approved mortgage brokers."We are concerned [that] consumers are being charged excessive fees," a HUD spokesman said. He said HUD is planning to warn FHA lenders soon that these fees could be "duplicative." While non-approved brokers can refer clients to FHA lenders, they are not allowed to take FHA applications or originate FHA loans. Nevertheless, FHA lenders are soliciting non-approved brokers to bring them customers and loans to process. HUD investigators have found that some lenders are charging borrowers points and paying $4,000 to $5,000 to the brokers. The National Association of Mortgage Brokers said it condemns this practice, which circumvents the FHA's approval process for originators. "This loophole needs to be closed as part of FHA reform" legislation, NAMB president George Hanzimanolis said.
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A federal judge in Texas dismissed the Consumer Financial Protection Bureau's medical debt rule and prohibited states from passing their own laws prohibiting medical debt on credit reports.
July 11 -
Dr. Mark Calabria takes on the additional role of chief statistician of the United States; retired Ally Bank executive Diane Morais has joined First Citizens Bancshares' board of directors; MainStreet Bank has promoted Alex Vari to chief financial officer; and more in this week's banking news roundup.
July 11 -
While refinances are behind the latest increases, the pace of purchase activity may be a stronger indicator of where the housing market sits.
July 11 -
The share of economists expecting a September rate reduction grew in the July Wolters Kluwer survey, but the October or later percentage also increased.
July 11 -
Rising home prices and softening sales offer a mixed view of a market that some say is shifting to favor buyers.
July 11 -
The notes are backed by home improvement installment loans originated by approved dealers in Foundation Finance Company's network.
July 11