"Despite what you may be hearing, Commercial Real Estate credit problems are affecting big and small banks alike," said the Federal Deposit Insurance Corp. Chairman Sheila Bair in a prepared speech delivered at a Commercial Mortgage Securities Association conference in Washington, D.C.
All banks and thrifts are having problems with commercial real estate loans, not just small community banks, according Bair.
"The annualized net charge-off rate of 6% on C&D loans in the third quarter significantly exceeds the highest rate of the last crisis, which was about 4%," Bair said.
As of October 2009, FDIC-insured institutions held $1.3 trillion Commercial Real Estate and Multifamily mortgages - nearly 18% of total loans. And $44.8 billion are classified as noncurrent meaning 90-days or more past due or considered uncollectible.
Banks and thrifts hold another $500 million in construction and development loans and 15% of these are noncurrent.
The FDIC expects delinquencies and charge-offs will move higher in the coming quarters.
_______________________
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Thursday, January 21, 2010
Wednesday, January 20, 2010
Mortgage Loan Compliance | New FHA Guidelines Revealed
Most of the new FHA guidelines outlined Wednesday will go into effect this spring. The Federal Housing Administration Commissioner, David Stevens, did not provide any insight into how much money the following changes will raise for the FHA reserve fund.
• A 10% down-payment will be required for borrowers with FICOs of less than 580.
• The Mortgage Insurance Premium (MIP) will be increased in a few months from the current charge of 1.75 basis points.
• FHA will allow borrowers to continue financing the upfront MIP.
• And seller concessions will be reduced to 3% from 6%.
The agency also will pursue legislative authority to allow flexibility to bring the annual premium, which borrowers pay on a monthly basis, higher.
The Federal Housing Administration, which is trying to bolster its depleted cash reserves, unveiled tighter underwriting guidelines Wednesday morning, including a hefty down-payment for low FICO score borrowers and an increase in the upfront mortgage insurance premium to 225 basis points. The premium is currently 55 basis points for low down-payment loans that are popular with borrowers.
_______________________
Mortgage Loan Compliance® | The Forensic Loan Audit Company
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• A 10% down-payment will be required for borrowers with FICOs of less than 580.
• The Mortgage Insurance Premium (MIP) will be increased in a few months from the current charge of 1.75 basis points.
• FHA will allow borrowers to continue financing the upfront MIP.
• And seller concessions will be reduced to 3% from 6%.
The agency also will pursue legislative authority to allow flexibility to bring the annual premium, which borrowers pay on a monthly basis, higher.
The Federal Housing Administration, which is trying to bolster its depleted cash reserves, unveiled tighter underwriting guidelines Wednesday morning, including a hefty down-payment for low FICO score borrowers and an increase in the upfront mortgage insurance premium to 225 basis points. The premium is currently 55 basis points for low down-payment loans that are popular with borrowers.
_______________________
Mortgage Loan Compliance® | The Forensic Loan Audit Company
For A Limited Time Order A $59 Rapid Report Forensic Audits Or A $295 Certified Forensic Compliance Audits.
Call Today 1-866-966-6615 or Visit www.ml-compliance.com
Tuesday, January 19, 2010
Mortgage Loan Compliance | The FDIC – Risks and Assurances
The FDIC is seeking public input on a plan to link the insurance premiums levied on banks to the degree of risk-taking. The plan could involve both rewards and penalties for banks. The idea is for institutions deemed to be more of a risk to pay bigger insurance fees.
The number of bank failures is expected to rise this year. The 140 bank failures last year were the highest annual tally since 1992 at the height of the savings and loan crisis. Those 140 failures cost the insurance fund more than $30 billion. The FDIC expects the cost of resolving failed banks to grow to about $100 billion over the next four years.
Depositors' money, insured up to $250,000 per account, is not at risk and the FDIC is backed by the government. Besides the federal deposit insurance fund, the FDIC has about $21 billion in cash available in reserve to cover losses at failed banks. Also the FDIC mandated banks to prepay about $45 billion in premiums, for 2010 through 2012, to replenish the insurance fund.
As the economy has soured, with unemployment rising, home prices tumbling and loan defaults soaring, bank failures have accelerated and sapped billions out of the federal deposit insurance fund, which fell into the red last year.
Banks have been especially hurt by failed real estate loans, both residential and commercial. Banks that had lent to seemingly solid businesses are suffering losses as buildings sit vacant. As development projects collapse, builders are defaulting on their loans.
If the economic recovery falters, defaults on the high-risk loans could spike. Many regional banks hold large concentrations of these types of loans. Nearly $500 billion in commercial real estate loans are expected to come due annually over the next few years.
_______________________
Mortgage Loan Compliance® | The Forensic Loan Audit Company
For A Limited Time Order A $59 Rapid Report Forensic Audits Or A $295 Certified Forensic Compliance Audits.
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The number of bank failures is expected to rise this year. The 140 bank failures last year were the highest annual tally since 1992 at the height of the savings and loan crisis. Those 140 failures cost the insurance fund more than $30 billion. The FDIC expects the cost of resolving failed banks to grow to about $100 billion over the next four years.
Depositors' money, insured up to $250,000 per account, is not at risk and the FDIC is backed by the government. Besides the federal deposit insurance fund, the FDIC has about $21 billion in cash available in reserve to cover losses at failed banks. Also the FDIC mandated banks to prepay about $45 billion in premiums, for 2010 through 2012, to replenish the insurance fund.
As the economy has soured, with unemployment rising, home prices tumbling and loan defaults soaring, bank failures have accelerated and sapped billions out of the federal deposit insurance fund, which fell into the red last year.
Banks have been especially hurt by failed real estate loans, both residential and commercial. Banks that had lent to seemingly solid businesses are suffering losses as buildings sit vacant. As development projects collapse, builders are defaulting on their loans.
If the economic recovery falters, defaults on the high-risk loans could spike. Many regional banks hold large concentrations of these types of loans. Nearly $500 billion in commercial real estate loans are expected to come due annually over the next few years.
_______________________
Mortgage Loan Compliance® | The Forensic Loan Audit Company
For A Limited Time Order A $59 Rapid Report Forensic Audits Or A $295 Certified Forensic Compliance Audits.
Call Today 1-866-966-6615 or Visit www.ml-compliance.com
Thursday, January 14, 2010
Mortgage Loan Compliance | Forbearance Option on HAMP
The Mortgage Bankers Association wants the Obama administration to amend HAMP so servicers can offer borrowers an option to pay only interest on the mortgage and defer principal payments.
Offering an interest-only option would help get the "payments down to a level the borrower can afford," said MBA president John Courson.
The MBA also wants the White House to tone down expectations for the Home Affordable Modification Program and create a forbearance option for borrowers who become unemployed or suffer a loss of income.
Delinquent borrowers are facing a tough economic situation and have a difficult time making it through the HAMP payment trials to qualify for a permanent modification, said MBA chairman Robert Story. If they become unemployed and cannot make their mortgage payments, they "can't qualify for HAMP," Mr. Story said.
Courson and Story strongly believe that forbearance or deferred payments should be considered. Once the borrower gets a job, the servicer can "move them" into a HAMP modification, said Courson in a press briefing earlier this week.
_______________________
Mortgage Loan Compliance® | The Forensic Loan Audit Company
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Offering an interest-only option would help get the "payments down to a level the borrower can afford," said MBA president John Courson.
The MBA also wants the White House to tone down expectations for the Home Affordable Modification Program and create a forbearance option for borrowers who become unemployed or suffer a loss of income.
Delinquent borrowers are facing a tough economic situation and have a difficult time making it through the HAMP payment trials to qualify for a permanent modification, said MBA chairman Robert Story. If they become unemployed and cannot make their mortgage payments, they "can't qualify for HAMP," Mr. Story said.
Courson and Story strongly believe that forbearance or deferred payments should be considered. Once the borrower gets a job, the servicer can "move them" into a HAMP modification, said Courson in a press briefing earlier this week.
_______________________
Mortgage Loan Compliance® | The Forensic Loan Audit Company
For A Limited Time Order A $59 Rapid Report Forensic Audits Or A $295 Certified Forensic Compliance Audits.
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Wednesday, January 13, 2010
Mortgage Loan Compliance | Real Customers, Real Answers
My loan was refinanced in 2005, what is the Statue of Limitations? If I have passed the Statues of Limitations, what could would the audit do, even if there were state /federal violations?
There is some debate over when the Statue of Limitations begin if the required information was never disclosed properly. Time limits will vary depending on the statue for instance some RESPA and TILA laws on a refinance have a right of recession that is three (3) years, but the legal community is divided as to whether the clock begins at loan consummation or if it begins from the point of discover of violations or after full disclosure.
In the Mortgage Loan Compliance Forensic Audits we are looking for fraud, misrepresentation, and breach of fiduciary duties in addition to failure to disclose and proper calculations of the terms and cost of the loan. There is of course no Statue of Limitations for fraud, and if errors are found, fraud should be your main compliant.
However, your Audit could reveal that the Lender was in compliance with the law. Audits are the facts of the loan- what was disclosed, if calculated correctly, and the benefits to the borrower.
A loan or mortgage is a legally binding contract so please be very cautious of anyone or any company that promises that a Audit entitles you to a loan modification, loan recession or otherwise.
Again the Audit is just the facts. The facts of the loan combined with your recollection of promises or assurances made by the lender or broker, and a well drafted compliant is what the courts will consider as a case with merit. Many cases in the past have been kick out of court as having no standing because no proof of wrong-doing was provided or evidenced.
Get The Facts on Your Loan and Protect Your Rights!
_______________________
Mortgage Loan Compliance® | The Forensic Loan Audit Company
For A Limited Time Order A $59 Rapid Report Forensic Audits Or A $295 Certified Forensic Compliance Audits.
Call Today 1-866-966-6615 or Visit www.ml-compliance.com
There is some debate over when the Statue of Limitations begin if the required information was never disclosed properly. Time limits will vary depending on the statue for instance some RESPA and TILA laws on a refinance have a right of recession that is three (3) years, but the legal community is divided as to whether the clock begins at loan consummation or if it begins from the point of discover of violations or after full disclosure.
In the Mortgage Loan Compliance Forensic Audits we are looking for fraud, misrepresentation, and breach of fiduciary duties in addition to failure to disclose and proper calculations of the terms and cost of the loan. There is of course no Statue of Limitations for fraud, and if errors are found, fraud should be your main compliant.
However, your Audit could reveal that the Lender was in compliance with the law. Audits are the facts of the loan- what was disclosed, if calculated correctly, and the benefits to the borrower.
A loan or mortgage is a legally binding contract so please be very cautious of anyone or any company that promises that a Audit entitles you to a loan modification, loan recession or otherwise.
Again the Audit is just the facts. The facts of the loan combined with your recollection of promises or assurances made by the lender or broker, and a well drafted compliant is what the courts will consider as a case with merit. Many cases in the past have been kick out of court as having no standing because no proof of wrong-doing was provided or evidenced.
Get The Facts on Your Loan and Protect Your Rights!
_______________________
Mortgage Loan Compliance® | The Forensic Loan Audit Company
For A Limited Time Order A $59 Rapid Report Forensic Audits Or A $295 Certified Forensic Compliance Audits.
Call Today 1-866-966-6615 or Visit www.ml-compliance.com
Monday, January 11, 2010
Mortgage Loan Compliance | Home Equity Line of Credit Delinquencies
At the start of 2009, 1.46% of Home Equity Lines Of Credit (HELOC) were 30 days or more days past due and 3.0% of closed-end second liens were 30 days or more past due.
The seasonally adjusted 30-day delinquency rate on home equity lines of credit jumped 20 basis points in the third quarter of 2009 from the previous quarter to a new record of 2.12%, according to an American Bankers Association survey.
On closed-end second mortgages, the seasonally adjusted delinquency rate shot up 29 BP to 4.3% in the third quarter of 2009, also a new record.
Banks and thrifts held $667.5 billion in HELOCs as of Sept. 30, according to Federal Deposit Insurance Corp. Call Report data. Of that, $9 billion or 1.3% was 30-to-89 days past due.
Banks charged off $5.1 billion in HELOCs in the third quarter. FDIC-insured institutions held $187.7 billion in closed-end second liens and 2.6% or $4. 9 billion were 30-89 days past due. Charge-offs on second liens totaled $2.8 billion.
_______________________
Mortgage Loan Compliance® | Get The Facts on Your Loan and Protect Your Rights!
For A Limited Time Order A $59 Rapid Report Forensic Audits Or A $295 Certified Forensic Compliance Audits
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The seasonally adjusted 30-day delinquency rate on home equity lines of credit jumped 20 basis points in the third quarter of 2009 from the previous quarter to a new record of 2.12%, according to an American Bankers Association survey.
On closed-end second mortgages, the seasonally adjusted delinquency rate shot up 29 BP to 4.3% in the third quarter of 2009, also a new record.
Banks and thrifts held $667.5 billion in HELOCs as of Sept. 30, according to Federal Deposit Insurance Corp. Call Report data. Of that, $9 billion or 1.3% was 30-to-89 days past due.
Banks charged off $5.1 billion in HELOCs in the third quarter. FDIC-insured institutions held $187.7 billion in closed-end second liens and 2.6% or $4. 9 billion were 30-89 days past due. Charge-offs on second liens totaled $2.8 billion.
_______________________
Mortgage Loan Compliance® | Get The Facts on Your Loan and Protect Your Rights!
For A Limited Time Order A $59 Rapid Report Forensic Audits Or A $295 Certified Forensic Compliance Audits
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Sunday, January 10, 2010
Mortgage Loan Compliance | The Loan Mod Race: Fannie Vs. Freddie
And in this corner wearing red, white, and blue trunks….
The Federal Housing Finance Agency's quarterly report shows that Freddie, relative to its size, is more efficient at completing HAMP modifications than its larger competitor.
Fannie has completed 11,700 HAMP modifications as of November 30, compared to 10,300 for Freddie.
Fannie Mae was faster than Freddie Mac by a mile in the loan modification race by moving borrowers who do not qualify for the government's Home Affordable Modification Program into alternative restructuring plans.
"Freddie has instructed its servicers to fully support HAMP as the primary modification program," said the Federal Housing Finance Agency in its quarterly Foreclosure Prevention and Refinance Report.
"While Fannie Mae's primary modification solution is HAMP, it has also focused on putting borrowers who do not qualify for HAMP modifications into other modifications leading to most of this increase in the quarter," said FHFA.
Not counting HAMP modifications, Fannie completed 27,700 loan modifications in the third quarter, up 66% from the second quarter. Freddie completed only 9,000 alternative modifications, a 42% decline from the previous quarter.
_______________________
Mortgage Loan Compliance® | Get The Facts on Your Loan and Protect Your Rights!
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The Federal Housing Finance Agency's quarterly report shows that Freddie, relative to its size, is more efficient at completing HAMP modifications than its larger competitor.
Fannie has completed 11,700 HAMP modifications as of November 30, compared to 10,300 for Freddie.
Fannie Mae was faster than Freddie Mac by a mile in the loan modification race by moving borrowers who do not qualify for the government's Home Affordable Modification Program into alternative restructuring plans.
"Freddie has instructed its servicers to fully support HAMP as the primary modification program," said the Federal Housing Finance Agency in its quarterly Foreclosure Prevention and Refinance Report.
"While Fannie Mae's primary modification solution is HAMP, it has also focused on putting borrowers who do not qualify for HAMP modifications into other modifications leading to most of this increase in the quarter," said FHFA.
Not counting HAMP modifications, Fannie completed 27,700 loan modifications in the third quarter, up 66% from the second quarter. Freddie completed only 9,000 alternative modifications, a 42% decline from the previous quarter.
_______________________
Mortgage Loan Compliance® | Get The Facts on Your Loan and Protect Your Rights!
For A Limited Time Order A $59 Rapid Report Forensic Audits Or A $295 Certified Forensic Compliance Audits
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Friday, January 8, 2010
Mortgage Loan Compliance | City of Baltimore V. Wells Fargo
The city of Baltimore alleged that Wells Fargo targeted minority neighborhoods with subprime loans, which lead to foreclosures and deterioration of inner city neighborhoods.
U.S. District Court Judge Frederick Motz has ruled in favor of Wells Fargo Bank NA and dismissed a lawsuit by the City of Baltimore seeking reimbursement for expenses and loss of revenues due to foreclosures and vacant homes.
The city's allegations of a "casual connection between Wells Fargo's alleged misconduct and the damages the city claims is not plausible," the judge ruled. The opinion says the number of vacant homes in Baltimore range from 16,000 to 33,000 and the city has identified only 401 vacant properties involving Wells Fargo loans.
Judge Motz noted in his opinion that the bank is responsible for only a "negligible portion" the city's vacant properties and other factors such as high unemployment, drug use and violence also are factors. He has left leeway for the city to file an amended complaint that seeks damages for "specific houses that became vacant allegedly because of Wells Fargo's lending activities."
"From the beginning, we have consistently maintained that Baltimore's economic problems could not be attributed to the small number of foreclosures Wells Fargo has done in Baltimore," said Cara Heiden, co-president of Wells Fargo Home Mortgage. "We are pleased the court's decision rejects the city's claim and reflects this point of view."
_______________________
Mortgage Loan Compliance® | Get The Facts on Your Loan and Protect Your Rights!
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U.S. District Court Judge Frederick Motz has ruled in favor of Wells Fargo Bank NA and dismissed a lawsuit by the City of Baltimore seeking reimbursement for expenses and loss of revenues due to foreclosures and vacant homes.
The city's allegations of a "casual connection between Wells Fargo's alleged misconduct and the damages the city claims is not plausible," the judge ruled. The opinion says the number of vacant homes in Baltimore range from 16,000 to 33,000 and the city has identified only 401 vacant properties involving Wells Fargo loans.
Judge Motz noted in his opinion that the bank is responsible for only a "negligible portion" the city's vacant properties and other factors such as high unemployment, drug use and violence also are factors. He has left leeway for the city to file an amended complaint that seeks damages for "specific houses that became vacant allegedly because of Wells Fargo's lending activities."
"From the beginning, we have consistently maintained that Baltimore's economic problems could not be attributed to the small number of foreclosures Wells Fargo has done in Baltimore," said Cara Heiden, co-president of Wells Fargo Home Mortgage. "We are pleased the court's decision rejects the city's claim and reflects this point of view."
_______________________
Mortgage Loan Compliance® | Get The Facts on Your Loan and Protect Your Rights!
For A Limited Time Order A $59 Rapid Report Forensic Audits Or A $295 Certified Forensic Compliance Audits
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Thursday, January 7, 2010
Mortgage Loan Compliance | FHA’s New Appraisal Policy On Hold
Back in September 2009 FHA officials outlined a number of risk management initiatives, including a new appraisal policy.
"FHA does not require the use of appraisal management companies or other third party providers, but it does require lenders take responsibility to assure appraiser independence," FHA officials said.
FHA officials initially set a January 1, 2010 effective date. Officials have now concluded that FHA lenders need more time to change to their systems and decided to give them 45 more days, according to sources.
The Federal Housing Administration is temporarily delaying the effective date of its new policy to shield appraisers from loan officer and mortgage broker pressure until February 15, 2010.
The new policy would put FHA in synch with Fannie Mae and Freddie Mac and prohibit commission-based staff and brokers from selecting appraisers.
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"FHA does not require the use of appraisal management companies or other third party providers, but it does require lenders take responsibility to assure appraiser independence," FHA officials said.
FHA officials initially set a January 1, 2010 effective date. Officials have now concluded that FHA lenders need more time to change to their systems and decided to give them 45 more days, according to sources.
The Federal Housing Administration is temporarily delaying the effective date of its new policy to shield appraisers from loan officer and mortgage broker pressure until February 15, 2010.
The new policy would put FHA in synch with Fannie Mae and Freddie Mac and prohibit commission-based staff and brokers from selecting appraisers.
_______________________
Mortgage Loan Compliance® | Get The Facts on Your Loan and Protect Your Rights!
For A Limited Time Order A $59 Rapid Report Forensic Audits Or A $295 Certified Forensic Compliance Audits
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Wednesday, January 6, 2010
Commercial Loan Compliance | Banks Suffering on Commercial
Banks hold nearly 45% of the outstanding $3.4 trillion in CRE and multifamily mortgages on their books and 20% are packaged into CMBS, according to MBA's newly released CRE Quarterly Data Book for the third quarter.
Commercial real estate loans held by commercial banks and in CMBS are experiencing higher delinquency rates than CRE loans held by other investors, according to a new report from the Mortgage Bankers Association.
"While loans held by banks and thrifts and CMBS are experiencing stress roughly on par with the stress with what was seen following the stress of the late-1980s/early-1990s, loans held by life insurance companies, Fannie Mae and Freddie Mac are performing far better than the experience of that time," MBA says.
Thrifts hold 5.6% of CRE and multifamily loans.
The Quarterly Data Book also shows that commercial banks have reduced their CRE lending over the past three years. In the third quarter of 2009, banks originated $62 billion in CRE/multifamily loans, down 52% from the same period a year ago.
Meanwhile, Fannie and Freddie originated $143 billion in multifamily loans in the third quarter, down 31% from the same period in 2008.
_______________________
Commercial Loan Compliance® | A Certified Forensic Audit Company
Get The Facts on Your Loan and Protect Your Rights! | Commercial and Multi-Family Audits Starting as low as $2495
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Commercial real estate loans held by commercial banks and in CMBS are experiencing higher delinquency rates than CRE loans held by other investors, according to a new report from the Mortgage Bankers Association.
"While loans held by banks and thrifts and CMBS are experiencing stress roughly on par with the stress with what was seen following the stress of the late-1980s/early-1990s, loans held by life insurance companies, Fannie Mae and Freddie Mac are performing far better than the experience of that time," MBA says.
Thrifts hold 5.6% of CRE and multifamily loans.
The Quarterly Data Book also shows that commercial banks have reduced their CRE lending over the past three years. In the third quarter of 2009, banks originated $62 billion in CRE/multifamily loans, down 52% from the same period a year ago.
Meanwhile, Fannie and Freddie originated $143 billion in multifamily loans in the third quarter, down 31% from the same period in 2008.
_______________________
Commercial Loan Compliance® | A Certified Forensic Audit Company
Get The Facts on Your Loan and Protect Your Rights! | Commercial and Multi-Family Audits Starting as low as $2495
Call 1-866-966-6615 or visit www.cl-compliance.com
Monday, January 4, 2010
Mortgage Loan Compliance | GMAC, ResCap, and TARP Again
ResCap and its mortgage affiliates originated $15.4 billion in residential loans in the third quarter - predominantly Fannie Mae, Freddie Mac and Federal Housing Administration product. It is a top-10 mortgage servicer with a $380 billion servicing portfolio.
Losses due to ResCap's mortgage operations totaled $3.9 billion for the first three quarters of 2009, including a $747 million loss in the third quarter. In propping up ResCap, GMAC also took a $500 million "repurchase reserve expense" for mortgage buyback demands from investors who claim the loans they purchased from ResCap violate representations and warranties. GMAC took a similar $515 million expense in the third quarter.
GMAC Financial Services has used a $3.8 billion capital infusion from the Treasury Department TARP Funds to take a $2 billion writedown on its mortgage assets and pursue options that could include the sale of Residential Capital.
GMAC also made a $2.7 billion capital contribution to ResCap in the form of mortgage loans, debt forgiveness and cash.
"These decisive balance sheet actions and resulting capital infusions are intended to minimize the impact on GMAC and Ally Bank of any future losses related to ResCap's legacy mortgage business," GMAC chief executive Michael Carpenter said.
The CEO also noted these actions will allow GMAC to "pursue strategic alternatives" with respect to ResCap and the mortgage business. "We expect to consider various possible options," company spokeswoman Gina Proia said when asked about a possible sale. "There are no special plans at this time," she added.
_______________________
Mortgage Loan Compliance® | Get The Facts on Your Loan and Protect Your Rights!
For A Limited Time Order A $59 Rapid Report Forensic Audits Or A $295 Certified Forensic Compliance Audits
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Losses due to ResCap's mortgage operations totaled $3.9 billion for the first three quarters of 2009, including a $747 million loss in the third quarter. In propping up ResCap, GMAC also took a $500 million "repurchase reserve expense" for mortgage buyback demands from investors who claim the loans they purchased from ResCap violate representations and warranties. GMAC took a similar $515 million expense in the third quarter.
GMAC Financial Services has used a $3.8 billion capital infusion from the Treasury Department TARP Funds to take a $2 billion writedown on its mortgage assets and pursue options that could include the sale of Residential Capital.
GMAC also made a $2.7 billion capital contribution to ResCap in the form of mortgage loans, debt forgiveness and cash.
"These decisive balance sheet actions and resulting capital infusions are intended to minimize the impact on GMAC and Ally Bank of any future losses related to ResCap's legacy mortgage business," GMAC chief executive Michael Carpenter said.
The CEO also noted these actions will allow GMAC to "pursue strategic alternatives" with respect to ResCap and the mortgage business. "We expect to consider various possible options," company spokeswoman Gina Proia said when asked about a possible sale. "There are no special plans at this time," she added.
_______________________
Mortgage Loan Compliance® | Get The Facts on Your Loan and Protect Your Rights!
For A Limited Time Order A $59 Rapid Report Forensic Audits Or A $295 Certified Forensic Compliance Audits
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Saturday, January 2, 2010
Mortgage Loan Compliance | Resolution #1 - Remove 1% Limit on FHA Origination Fees
As a result of a new Real Estate Settlement Procedures Act rule, "FHA no longer limits the origination fee to 1% of the mortgage amount for its standard mortgage insurance programs," HUD says in mortgagee letter 2009-53.
"FHA expects that lenders will continue to charge fair and reasonable fees for all origination services and the agency will continue to monitor to ensure that FHA borrowers are not overcharged," FHA commissioner David Stevens says in the mortgagee letter.
Federal Housing Administration lenders are expected to charge reasonable origination fees but in most cases they will no longer be bound to a 1% limit, according to the Department of Housing and Urban Development.
However, the 1% limit will continue to apply to FHA-insured reverse mortgages and FHA 203(k) purchase/renovation loans.
The Good Faith Estimate does not disclose the lender's origination fee as a single line item.
The new RESPA rule went into effect Friday Jan. 1, 2010 and mandates the use of a standardized Good Faith Estimate disclosure that bundles all origination charges into a single fee.
_______________________
Mortgage Loan Compliance® | Get The Facts on Your Loan and Protect Your Rights!
For A Limited Time Order A $59 Rapid Report Forensic Audits Or A $295 Certified Forensic Compliance Audits
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"FHA expects that lenders will continue to charge fair and reasonable fees for all origination services and the agency will continue to monitor to ensure that FHA borrowers are not overcharged," FHA commissioner David Stevens says in the mortgagee letter.
Federal Housing Administration lenders are expected to charge reasonable origination fees but in most cases they will no longer be bound to a 1% limit, according to the Department of Housing and Urban Development.
However, the 1% limit will continue to apply to FHA-insured reverse mortgages and FHA 203(k) purchase/renovation loans.
The Good Faith Estimate does not disclose the lender's origination fee as a single line item.
The new RESPA rule went into effect Friday Jan. 1, 2010 and mandates the use of a standardized Good Faith Estimate disclosure that bundles all origination charges into a single fee.
_______________________
Mortgage Loan Compliance® | Get The Facts on Your Loan and Protect Your Rights!
For A Limited Time Order A $59 Rapid Report Forensic Audits Or A $295 Certified Forensic Compliance Audits
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