Origination

The Federal Reserve Board on Wednesday continued to shrink its stimulus program by yet another $10 billion clip.

The HAWK program could help participating lenders differentiate themselves from the flock. But the proposed mortgage insurance premium discounts for borrowers who receive counseling are too modest, industry members say.

Easier credit comes with relief from charge-offs on old building loans.

Mortgage applications fell last week as rising borrowing costs led to less purchases and refinancing.

Several federal agencies and 49 state attorneys general struck a $968 million settlement Tuesday with SunTrust Mortgage over charges that it violated laws governing mortgage origination, servicing and foreclosures.

Julian Castro pledged to recapitalize the FHA insurance fund and work with Congress on GSE reform but equivocated when a Senator asked about cities condemning underwater mortgages.

The program was previously available to first-time homebuyers only.

When the qualified mortgage rule took effect in January, many predicted the rule would stifle lending to low-income and minority borrowers. But a credit crunch never materialized, thanks to exemptions given to federal mortgage agencies.

Builders broke ground on 1 million homes in May, indicating the industry is picking up this quarter after a weather-induced slump to start the year.

Smaller banks face a tricky choice with jumbo loans: hold them and face rate risk, or sell them to a bigger bank and risk losing a customer. An unusual arrangement between the FHLB and a REIT could offer community banks a better route.