A House subcommittee approved a bill Tuesday to help the Federal Housing Administration “shore up” the health of the Federal Housing Administration’s mortgage insurance fund.

The FHA Emergency Fiscal Solvency Act aims to strengthen the fund, which insures all FHA loans including Home Equity Conversion Mortgages. An independent audit of the fund found in November revealed that its capital reserves were well below the mandated level of 2%.

“The FHA’s cash reserves are down to dangerous levels, and taxpayers cannot afford another Fannie- and Freddie-style bailout,” said Rep. Judy Biggert (R-Ill.). “This Administration needs to enforce stronger standards and create room for the private sector to replace taxpayers as the primary source of funding. The FHA is facing an urgent fiscal crisis, and this proposal gives HUD Secretary Donovan emergency tools to wind down the risk before it’s too late.”

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Mortgage regulators now have SAFE Act Examination Guidelines (SEGs) with which to monitor and ensure mortgage loan originators are properly licensed and registered in the states where they are doing business. The Multi-State Mortgage Committee under the Conference of State Bank Supervisors (CSBS) released the new guidelines Wednesday for use by state non-depository mortgage regulators.

“The primary purpose of the SEGs is to ensure that all individuals acting as MLOs are properly licensed and registered under the SAFE Act in all states in which they are conducting business,” said John Ducrest, commissioner of the Louisiana Office of Financial Institutions and Chairman of CSBS. “These guidelines provide a standardized set of examination procedures that will result in a thorough review of an entity’s compliance with state licensing through NMLS and individual MLO compliance with state law and the SAFE Act.”

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Since President Obama nominated Richard Cordray as Consumer Financial Protection Bureau director in early January, the controversy surrounding that recess appointment has spanned Washington—and beyond. But what about the constitutionality of the bureau itself? Republican presidential candidate Rep. Ron Paul (R-Texas) weighed in on the CFPB, its director, and keeping Wall Street “in check” in an editorial published Tuesday on the Daily Bell.

Paul writes: Continue reading →

While the measurable results of social media marketing efforts are largely to-be-determined for reverse mortgage lenders, several lenders are beginning to enter Twitter, Facebook and other social media channels. While they say it is too soon to measure success, not being present online is a risk they say they are not willing to take—even knowing there are some compliance aspects to consider.

There are an estimated 15.5 million Facebook users in the United States over the age of 55 according to data from iStrategy Labs, which tracks Internet use among different age demographics. The online space is only becoming more populated with potential reverse mortgage borrowers, as the 55+ age group saw a 60% increase from 2010 to 2011. Reverse mortgage lenders have not exactly been spearheading social media marketing efforts, but some say they are willing to give it a shot, despite the unknowns.

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State bank supervisors are looking for a way to develop a uniform state test for mortgage loan originators, the Conference of State Bank Supervisors and State Regulatory Registry announced Tuesday. The organizations have begun work toward uniform content, including research on the feasibility of such an effort.

Initial feasibility studies have been done and test development is now under way, CSBS reported.

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All nonbank residential mortgage lenders will be required to submit suspicious activity reports (SARs) to the Financial Crimes Enforcement Network (FinCEN) as specified under a new final rule announced Tuesday by the Treasury. Additionally, lenders and originators must establish anti-money laundering programs under the rule.

“Today FinCEN is closing a regulatory gap by requiring non-bank mortgage lenders and originators to develop anti-money laundering programs and file suspicious activity reports with FinCEN,” said FinCEN Director James Freis, Jr. “Suspicious activity reports are a critical source of information to law enforcement and regulatory agencies in their investigation and prosecution of mortgage fraud and a wide range of other financial crimes.”

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