Federal Ban on Up-Front Mod Fees Proposed
The Federal Trade Commission said it is proposing a new rule that would make up-front fees illegal. It would also bar modification firms from advising borrowers to stop making their payments or stop communicating with their lenders. The move is being made “so companies can’t take the money and run,” the FTC’s chairman said in the statement.
Boy, this is sure long overdue – but better now than never I guess!
hey Big Peter everything so far the you have said have come true except two things the collapse of fha and the ultra greedy gang from wall street to fill the hole of the financing game has not happen. when do you think those two will happen, what are your thoughts about that.
Comment by Big Red — February 5, 2010 @ 7:11 pm
The crashing fall of FHA is 2010, you may have missed this news piece earlier in the week. Finally they are starting to see the “party’s over” – and EVERYBODY I know who’s been in the biz 20+ years all have been saying it’s doomed for more than a year, I hav not been the lone voice on that front.
FHA Volume to Decline in 2010 and 2011
The Federal Housing Administration is forecasting a dropoff in single-family originations during the current 2010 fiscal year and FY 2011 along with an increase in claims and foreclosures. In FY 2009, which ended Sept. 30, FHA lenders originated $330.5 billion in single-family loans, not counting reverse mortgages. FHA expects a 9% decline in originations in FY 2010 to $300 billion followed by an 18% decline in FY 2011 to $246 billion. The President’s FY 2011 budget proposal also projects a jump in claim payments to lenders due to defaults on FHA guaranteed single-family loans. In FY 2009, FHA lenders paid $8.5 billion on defaulted loans. Budget estimates show these payments could jump to $15.7 billion in FY 2010 and $19.7 billion in FY 2011. The FHA mortgage insurance fund managed to stay in the black in FY 2009 by a very thin margin. Despite the jump in claims, FHA’s financial performance should improve slightly in FY 2010, according to budget projections. FHA is expected to get a boost in revenues from a mortgage insurance premium increase that goes into effect this spring.
Also, this one is from Monday! (only one of many like this I have been reading the last 6 months or so): Many Issuers
Hoping to Securitize This Year
Several influential issuers are hoping to bring a new-issue residential mortgage securitization to market this year, according to one executive attending the American Securitization Forum conference. “Every major issuer we’ve spoken to has a goal of doing a deal this year [and] with one or two exceptions, they are all looking at a prime [jumbo] deal,” said Alex Santos, president of predictive analytics and advisory firm Digital Risk LLC, Maitland, Fla. In regard to timing, he added that, “The most ambitious goal I have heard is the first quarter.” While pricing remains an obstacle, discussions about the possibility have become more serious, said Mr. Santos, whose firm’s offerings include contract underwriting. Among the reasons why is that “they hear the loans are better than they were,” he said. But Digital Risk has some mixed findings when it comes to whether loans really have improved. Credit quality, as far as loan-to-value and debt-to-income ratios, is better, Mr. Santos said. But when it comes to cutting down on procedural mistakes, underwriting “hasn’t improved as much as people expect and hope,” he said.
… So that’s 2010 also – my guess FHA all but closed down by Late Summer, and the Wall Street thugs back in the saddle before that
Comment by Secret! — February 6, 2010 @ 9:52 am