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Tag Archives: FHA

Lack of Distressed Properties Locks Out First-Time Homebuyers

The share of distressed properties is shrinking and home prices are rising, but first-time homebuyers aren't benefiting from the improvements, according to findings from a survey. In the most recent Campbell/Inside Mortgage Finance HousingPulseTracking survey, the first-time homebuyer share for home purchases was found to be 34.7 percent in October. The figure is a decrease from 37.1 percent in June and the lowest share in the survey's three-year history. The decrease coincides with a significant rise in purchases for non-distressed properties.

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FHA Deficit Leads to Concerns of a Possible Bailout

Vintage loans brought the Federal Housing Administration's (FHA) Mutual Mortgage Insurance (MMI) Fund to its knees in fiscal year 2012, but the agency insists it does not immediately need to draw from the Treasury. A review conducted by an independent actuary found that the capital reserve ratio of the MMI Fund fell below zero to negative 1.44 percent, representing a negative economic value of $16.3 billion.

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Wells Fargo Contends Mortgage Suit Violates Settlement Terms

The U.S. government is violating the terms of the national mortgage settlement with its recently filed lawsuit against Wells Fargo, attorneys for the bank argue. The U.S. Attorney's Office for the Southern District of New York filed suit against Wells Fargo in early October ""more than 10 years of misconduct"" in connection with the bank's participation in the Federal Housing Administration (FHA) Direct Endorsement Lender Program.

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Wells Fargo Issues Refunds to Customers Who Overpaid

Wells Fargo has issued thousands of refund checks to home loan customers who paid unnecessary mortgage fees, according to a report from the Los Angeles Times. According to the newspaper, Wells Fargo sent out refunds to as many as 10,000 customers along with letters explaining that they had paid too much.

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Wells Fargo Faces Federal Charges of Mortgage Fraud

The U.S. government is suing Wells Fargo over what officials allege constitutes more than 10 years of misconduct as a direct endorsement lender for the Federal Housing Administration (FHA). The civil fraud suit was filed in federal court Tuesday and alleges Wells Fargo falsely certified the credit and underwriting quality of FHA loans it originated. According to the complaint, thousands of Wells Fargo's FHA-insured mortgages defaulted as a result of deficient underwriting, causing the government agency to lose hundreds of millions of dollars.

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House Passes FHA Bill to Prevent Financial Decline

House lawmakers overcame election-year gridlock on Tuesday to punt their version of a bill that would shore up the Federal Housing Administration, whose embattled Mutual Mortgage Insurance Fund falls short of the capital required by law. The lower chamber passed the Federal Housing Administration Fiscal Solvency Act by a sweeping vote of 402 -7.

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Fitch Foresees Troubles for FHA as Delinquencies Rise

Times haven't been too swell for the Federal Housing Administration. That was apparent, by some accounts, when the agency raised insurance premiums for lenders of single-family mortgages in February, a choice it made to shore up its crisis-weary Mutual Mortgage Insurance Fund. Now, according to Fitch Ratings, a new tide of mortgage delinquencies and price declines may tip the fund back toward troubled waters - and possibly insolvency.

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Judge Lifts Allied’s Injunction, Allows Lender to Pursue HUD Lawsuit

An injunction granted to Allied Home Mortgage that offered the mortgage lender relief from a suspension was recently dismissed. In November 2011, Allied was barred by HUD from originating and underwriting new FHA insured-mortgages. HUD accused Allied of violating HUD/FHA requirements and committing fraud. Allied countered with its own lawsuit and filed for declaratory and injunctive relief. A federal judge in Houston provided Allied with the preliminary injunction, which was recently lifted by U.S. District Judge Gray Miller.

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HUD Investigates SunTrust FHA Origination Practices

SunTrust is under investigation by HUD regarding its FHA loan origination practices. HUD made its investigation known to the Atlanta-based bank April 25, and in a recent filing, the bank said, ""The Company is cooperating with the investigation."" According to the filing, HUD's investigation pertains ""generally to origination practices for FHA loans.""

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FHA Announces New Details for Distressed Loan Sale

During a conference call Wednesday, Acting Federal Housing Administration (FHA) Commissioner Carol Galante announced applications are now being accepted for the Distressed Asset Stabilization Program, which is scheduled to hold its next sale in September. About 40 percent of the loan sale will be concentrated in four hard-hit metro areas: Chicago, Newark, Phoenix, and Tampa, where about 3,500 loans are to be sold. For the next round of sales, there will be new neighborhood stabilization requirements for the selected hard-hit metros. In those areas, no more than 50 percent of the loans may be sold as REOs.

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