The Department of Housing and Urban Development has rolled out an automated lender monitoring system know as "Credit Watch" that will target problem Federal Housing Administration lenders."Credit Watch will identify lenders in the FHA program with problems and will allow us to remove the worst performers -- in the same way a school can expel a student who flunks out," HUD Secretary Andrew Cuomo said. Credit Watch focuses on FHA lender branch offices, which are originating loans with high default and claim rates during the first 24 months of the loan's life. Branch offices with default and claim rates three times the area average will be notified of their termination and right to appeal. Twenty to 30 lenders are expected to receive the first termination letters in June. Lenders with default and claims rates about two times the norm will be placed on Credit Watch and under probation for 18 months. These lenders can still originate loans, but they will be closely monitored. "HUD is doing what it needs to do in order to police the quality of loans that it insures," said Steve O'Connor, senior director for residential finance at the Mortgage Bankers Association of America. HUD's website address is http://www.hud.gov.
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Elevated delinquency levels have not affected expected losses, however, due to home price appreciation, Fitch Ratings said.
6h ago -
Retail lenders, including Beeline, Tomo Mortgage and Rocket Mortgage, settled with the department over infractions like submitting a false certification to not having the proper liquidity to be in the program.
6h ago -
A pair of bills, one with bipartisan support, look to address the issues around heirs' property so these families can have clear title on their homes.
6h ago -
The agreement, in which the real estate giant admits no wrongdoing, will cover around 70,000 agents.
9h ago -
Doxo plans to fight the FTC complaint, which focuses broadly on consumer finance, but there are signs of confusion about the company's role in mortgages too.
April 25 -
Members of the LGBTQ community were most likely to have experienced housing bias, according to a Zillow survey, which also found many people don't recognize how fair lending laws could help.
April 25