The recently proposed federal subprime lending guidance reminds lenders that they should help consumers make informed choices and not steer them into 2/28 adjustable-rate mortgages when they might qualify for another product, according to Office of Thrift Supervision Director John Reich.It is an "inappropriate practice" to steer consumers into 2/28s with one-sided product descriptions that present the benefits without describing the risks, Mr. Reich told a National Community Reinvestment Coalition conference. (A 2/28 ARM is a 30-year mortgage that has a fixed rate for the first two years.) The comment period on the proposed guidance ends May 7. The thrift regulator also told the community activists that his agency is about to issue a final rule that realigns OTS's Community Reinvestment Act regulation with those of the other federal banking agencies. "We are making these revisions to our CRA rule to promote consistency and help facilitate objective evaluations of CRA performance across the banking and thrift industries," Mr. Reich said.
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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.
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The government mortgage-bond guarantor will require additional information on foreclosure prevention actions, and retire some forbearance reporting.
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But views are split, at least in the near-term on whether rising mortgage rates are holding back the Spring home purchase season.
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The top five producers had an average dollar volume of FHA loans of more than $50 million in 2023.
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The tool will provide helpful HELOC-related information to customer support staff to streamline the application process, Figure said Thursday.
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The five states with the lowest property taxes have an average effective real-estate tax rate of 0.44%.
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