Housing officials say they need to raise the FHA upfront mortgage insurance premium 50 basis points to 2.25% this April to cover rising claims and losses. Foreclosures involving FHA-insured loans totaled 20,650 in the fourth quarter, up 41% from the same quarter in 2008.

On the upside, Lenders originated $86.1 billion in FHA-insured single-family loans in the fourth quarter, up 21% from same quarter in 2008.

The Federal Housing Administration reported that 60% or $51.8 billion of the endorsements involved home purchase loans during the final quarter of calendar year 2009.  FHA insurance-in-force grew by 24% during in the calendar year to $752.6 billion as of Dec. 31.

Meanwhile, the percentage of single-family loans 90 days or more past due grew by 34%. FHA ended the year with a 9.12% default rate, up from 6.82% at yearend 2008. The use of short sales to avoid foreclosure shot up 140% from a year ago to 2,925 in the fourth quarter of 2009.

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Housing officials say they need to raise the FHA upfront mortgage insurance premium 50 basis points to 2.25% this April to cover rising claims and losses. Foreclosures involving FHA-insured loans totaled 20,650 in the fourth quarter, up 41% from the same quarter in 2008.

On the upside, Lenders originated $86.1 billion in FHA-insured single-family loans in the fourth quarter, up 21% from same quarter in 2008.

The Federal Housing Administration reported that 60% or $51.8 billion of the endorsements involved home purchase loans during the final quarter of calendar year 2009.  FHA insurance-in-force grew by 24% during in the calendar year to $752.6 billion as of Dec. 31.

Meanwhile, the percentage of single-family loans 90 days or more past due grew by 34%. FHA ended the year with a 9.12% default rate, up from 6.82% at yearend 2008. The use of short sales to avoid foreclosure shot up 140% from a year ago to 2,925 in the fourth quarter of 2009.

_______________________

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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“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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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.

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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.

Call Today 1-866-966-6615 or Visit www.ml-compliance.com

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.

Call Today 1-866-966-6615 or Visit www.ml-compliance.com

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

For A Limited Time Order A $59 Rapid Report Forensic Audits Or A $295 Certified Forensic Compliance Audits.

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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!

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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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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.

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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.

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Mortgage Loan Compliance® | Get The Facts on Your Loan and Protect Your Rights!

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