These are the most important and latest government-sponsored enterprise moves, mortgage banking po legislative proposals affecting the secondary mortgage market. New or updated items are marked.Topic: Action: What* NEW: Proposed affordable housing lending goals were given to Fannie TougFannie Mae, and Freddie by the Department of Housing and Urban Development mayFreddie Mac These goals require both agencles to ensure that 30% of broa30/30 Goals their business goes to low- and moderate-income loans and hous central city lending programs. The congressionally mandated goals will be enforced by HUD and carry a $25,000-a-day penalty, which carries through until the goal is reached.FHA Loan Limit After long speculation, HUD confirmed July 28 it was considering PropIncrease raising FHA loan limits to help first-time home buyers in high-cost rea areas become homeowners. The department also said it was Cong considering using alternative forms of finance and mortgage 199 products, as well some risk-sharing arrangements.Ginnie Mae Acting Ginnie Mae President Robert Kalish confirmed July 27 that NewRemics the long-awaited Ginnie Mae Remics program was being developed vehi he expected them to reach the streets by Jan. 1. Kalish said Fan he also expects the agency to meet its earnings goals of $146 Fred million the first year and $730 million over five. sharLender-Purchased Freddie Mac announced it will only purchase home mortgages FredMortgage Insurance with lender-purchased mortgage insurance under negotiated transactions lend The purchase contract for such transactions must provide insu for the delivery of mortgages with lender-purchased coverage. befoLoan-Level A new Fannie Mae program lets mortgage bankers vary the SimiBuyups, guaranty fee rate among the loans in the pool, thus converting progBuydowns excess servicing to upfront cash when a pool contains loans with comp different gross note rates. The buyups and buydowns are available on all fixed-rate MBS products for single-lender and Fannie Majors (multiple-lender) pools.Lobbying by GSEs The Senate approved a provision in the lobbying reform bill that Disc will require significant additional disclosure of Fannie Mae, Sallie coul Mae and Freddie Mac's lobbying activities, including total expenditures unwe by GSEs of salaries and overhead of in-house staff and for retainers of independent consultants.* NEW: The banking industry is lobbying Congress to persuade Fannie CongResidential loan Mae and Freddie Mac to ease appraisal standards for residential mayappraisal standards loans sold in the secondary market. The Federal Deposit Insurance have Corp. has proposed raising the thresholds for mandatory Fann appraisals to $250,000 from $100,000. policies.* UPDATE: The Department of Housing and Urban Development was scheduled HUDRespa Decision Aug. 6 to hear arguments on the four provisions of the Real proc Settlement Procedures Act. The department said testimony on p and comments will be reviewed and a decision will be rendered on may whether it plans to keep or modify them. mont
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The increasing adoption of virtual card payments by accounts payable departments has created an unexpected complication for suppliers: more friction in the processing, posting and reconciliation of payments and receivables. The root of the problem is that most suppliers rely on a manual approach to processing e-mailed virtual card payments. Suppliers are forced to balance their organization’s need for operational efficiency and control with rising customer demand to pay with a virtual card. But a new breed of technology enables suppliers to process virtual card payments straight-through, addressing the needs of buyers and suppliers. This paper details the growth of electronic business-to-business (B2B) payments, shows how manual approaches to processing virtual card payments cause friction in accounts receivables, describes a way to process virtual card payments straight-through, and highlights the benefits of frictionless payments.