GSEs

It's a mortgage on top of a mortgage, and at least one lender is making these loans again through brokers.

In an interview, FHFA Director Mel Watt said there needs to be greater clarity to ensure some entities aren't taking improper advantage of Federal Home Loan Bank membership.

President Obama's 2016 budget plan tackled a host of big picture items for banking, including Dodd-Frank reform, CFPB funding, cybersecurity, as well as FHA and SBA lending. Here's what banks need to know.

The Federal Housing Finance Agency will require nonbank mortgage firms to meet minimum liquidity and net worth standards to curb risks to taxpayers from the rapidly expanding industry.

Arch Capital Group is repurposing a subsidiary to insure mortgages that are headed for private securitizations. Insuring such loans separately from the unit that works with Fannie and Freddie lets Arch offer more favorable terms to lenders.

At a hearing Tuesday, GOP lawmakers hammered FHFA Director Mel Watt for four hours over his recent decisions to allow Fannie Mae and Freddie Mac to buy loans with lower downpayments and provide money to two affordable housing trust funds.

Homeowners associations seeking unpaid dues are seizing on a court decision allowing them to foreclose on properties ahead of banks, and the FHFA is litigating to defend Fannie and Freddie mortgages. Private lenders, meanwhile, are trying to keep the problem from spreading to more states.

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Early signs point to a wave of Federal Housing Administration borrowers trying to tap into lower prices for mortgage backing.

The federal government's recent decisions to lower annual premiums for new borrowers and reduce down payment requirements suggest it has little interest in making room for private capital in the mortgage market.

A recap of the informed opinions (and the discussions they generated) on BankThink this week.

While put-backs and litigation risk are widely recognized as factors that have contributed to tight credit conditions, another factor — high servicing costs for nonperforming loans — is being overlooked.

A federal agency's plan to tighten membership rules for Federal Home Loan banks would hurt community banks and credit unions — and could endanger the financial system, according to a broad array of stakeholders, including state regulators, lawmakers and institutions.

Lenders and homebuyers should not expect further reductions in Federal Housing Administration's mortgage insurance premiums this year, according to Housing and Urban Development secretary Julian Castro.

As banks look to cuts costs and improve efficiency, many are actively trying to reduce the number of times they "touch" a loan file. The goal: get the application right the first time so it doesn't have to be sent back to the underwriter for time-consuming and costly fixes.

WASHINGTON — More than two dozen Senate lawmakers signed a letter this week that urges the Federal Housing Finance Agency to drop its proposal to tighten Federal Home Loan Bank membership rules.

Federal Housing Finance Agency Director Mel Watt's decision Thursday to stand up the affordable housing trust funds sharply divided lawmakers along party lines, with Democrats welcoming the decision as overdue while Republicans denounced it as a mistake.

After a six-year delay, Fannie Mae and Freddie Mac will finally begin setting aside a portion of their revenues to fund the development of rental housing for low-income families.

Fannie said it will immediately begin accepting applications for fixed-rate 97% loan-to-value financing of borrowers with FICO scores as low as 620. Freddie, meanwhile, took a more cautious approach, delaying the start of the program, requiring credit counseling, and in some cases only allowing FICO scores as low as 660.

The Federal Housing Administration said no county in the nation will experience a decrease from this year's loan limits.