Law and regulation

Borrowing short and lending long, which crashed the thrift market in the 1980s, and lowering underwriting standards, which crashed the mortgage market in the last decade, are rearing their heads again.

The Senate passed revised legislation Thursday that would delay increases in flood insurance premiums, following the House's vote advancing the bill last week.

Elected officials from President Obama to the new mayor of New York want to kick-start a building boom in affordable housing.

Communities and governments would avoid having to deal with abandoned properties on a protracted basis, which pulls down local property values and creates an unnecessary backlog in the court system.

Official puts servicers on notice that they should be ready to help borrowers who can’t afford the higher monthly payments.

Home Affordable Refinance Program loans are receding with overall refinancing, but in January they still looked to be running at about 23% of agency refis. The program ends next year.

Rep. Gary Miller, R-Calif., introduced legislation Wednesday to curb efforts by the Department of Housing and Urban Development to lower Federal Housing Administration loan limits.

Senate Banking Committee leaders are proposing to capitalize a new mortgage cooperative with a government loan to ensure small and even regional lenders can sell their loans for cash.

The Consumer Financial Protection Bureau plans to address the growing problem of vacant and abandoned properties that banks and mortgage servicers have walked away from to avoid maintaining the homes.

Lenders don't want to make loans outside the Qualified Mortgage rule's tight debt-to-income standard. Young graduates don't want to add to their hefty monthly payments. Net effect: Fewer first-time buyers.

Mortgage bankers welcomed the Johnson-Crapo housing finance reform proposal as a start, but cautioned they had no illusions it will on its own bring private capital back to their industry.

State regulators fined Southeast Mortgage of Georgia $22,500 following allegations that the nonbank lender was doing business with an unlicensed loan originator.

Sens. Tim Johnson, chairman of the Senate Banking Committee, and Mike Crapo, the top Republican, received an overall warm welcome to their agreement on housing finance reform released Tuesday, after months of negotiation.

FBC Mortgage, a unit of the investment bank Sterne Agee Group, is seeking loan referral partnerships with community banks. In a recent deal it also hired HomeBanc's mortgage personnel.

The Mortgage Forgiveness Debt Relief Act played a key role in helping underwater homeowners keep their homes after the crash. But it may also have unwittingly encouraged strategic default.

Sens. Tim Johnson, chairman of the Banking Committee, and Mike Crapo, the top Republican, laid out a preliminary bipartisan agreement on housing finance reform after months of deliberation.

Fannie Mae and Freddie Mac could return $179 billion in profits to taxpayers over the next 10 years if they continue operating under federal conservatorship, according to White House budget analysts.

USMI, successor to the Mortgage Insurance Cos. of America, says its top priority is to make sure whatever system replaces Fannie and Freddie uses at least as much private coverage.

Over the last year several decisions and regulatory actions suggest industry standards are soon going to become the way of life for lenders.

As interest rates increase, prepayment speeds are falling precipitously, extending the maturities of mortgage-backed securities, especially the guaranteed variety. This trend is likely to cause future declines in MBS values.