Freddie Mac, in a recently published Single-Family Update, has reminded everyone that it has now been three years since they implemented the Selling Representation and Warranty Framework which provides lenders (or sellers) with relief from certain selling representations and warranties for loans that demonstrate an acceptable payment history. What does this mean to lenders? It is anticipated that many…
Home Equity loans are becoming popular once again. Interest rates remain relatively low, home values have been appreciating in many parts of the country, college tuition costs continue to rise and credit card debt remains high for many homeowners. This is a “perfect storm” scenario for the resurgence in the origination of Home Equity loans as a source of needed…
Both Fannie Mae and Freddie Mac reported in December that they are considering offering lenders alternatives to repurchase requests for loans that have documented defects but are still considered to be of good quality. I enjoy a good oxymoron. These are some of my favorites: “jumbo shrimp”, “serious joke”, “virtual reality”, “small crowd”, “random order”, “student teacher” and “act naturally”.…
You heard the saying that the only thing constant is change. Well, I’m attending the MBA’s Risk Management, QA and Fraud Prevention Forum in Dallas this week and the word seems to be that the only thing certain when it comes to life of loan reps and warrants for the GSEs and FHA is that lenders are uncertain. The GSEs…
HUD/FHA’s draft “Origination Through Post-Closing/Endorsement Handbook”, states that loan transactions must be selected for post-closing reviews on a monthly basis with the selection comprising loans closed in the prior month. The loans that are selected for review must be processed within 60 days from the end of the prior one-month period. This is quite a reduction in processing time from…
What this means to Mortgage Lenders! In a June 18, 2015 News Release, HUD/FHA announced that it has further refined its risk management processes and has created a new “Defect Taxonomy”. The framework for this revised taxonomy centers on three core concepts: Identifying a defect Capturing sources and causes of a defect Assessing severity of a defect Just what does…
