Trade Groups Request Federal Reserve to Delay Reverse Mortgage Proposal

A group of trade associations are requesting the Federal Reserve Board delay its regulatory changes that would prohibit deceptive advertising and improve disclosure of reverse mortgage information until later in 2011. The National Reverse Mortgage Lenders Association, Mortgage Bankers Association, and the American Bankers Association said that while they generally support the proposal, given other legislative […]

With HECM Taxes and Insurance Guidance Coming, Industry Prepares to Assist

During the first week of January, the Department of Housing and Urban Development will publish their highly anticipated guidance to address an estimated 13,000 HECM reverse mortgages that are in default from a failure to pay taxes and insurance. The guidance is expected to rely heavily on assistance from housing counseling agencies and HUD has […]

Federal Reserve Compensation Rule is Confusing and Vague says MBA

The Mortgage Bankers Association is asking the Federal Reserve to provide written guidance on its final rule on loan officer compensation because the association believes it’s vague and confusing, particularly for lenders seeking to comply with its provisions. Without the additional guidance, many lenders may be forced to be very conservative and implement compensation and loan pricing structures that […]

Mortgage Banking Profits Up During Third Quarter says Report

Mortgage bankers made an average profit of $1,423 per loan originated during the third quarter of 2010, up from $917 per loan in the second quarter of 2010, according to the Mortgage Bankers Association (MBA)’s 3rd Quarter 2010 Performance Report released on Tuesday. The increase was driven by higher secondary marketing gains that increased from $3,455 […]

Obama Commission Fails to Send Mortgage Tax Deduction Limit to Congress

The President’s National Commission on Fiscal Responsibility and Reform voted 11-7 in support of the groups official report on Friday.  While supported by Democrats and Republicans, it’s three votes short of the 14 vote mark required to send the report to Congress. The commission recommended scaling back the mortgage deduction which currently stands at $1 million […]

MBA Strongly Opposes Proposal to Limit Mortgage Interest Deduction

The National Commission on Fiscal Responsibility and Reform published its final report and suggests rolling back the mortgage interest deduction as a way to lower the deficit. The commission recommends scaling back the current rule which caps the mortgage deduction at $1 million for principal and second residences, plus an additional $100,000 for home equity. […]

MBA Urges Use of Hardest Hit Funds to Cure HECM Defaults

The Mortgage Bankers Association is requesting the Treasury and the Department of Housing and Urban Development authorize use of the Innovation Fund for Hardest Hit Housing Markets program (Hardest Hit Fund) and the Emergency Homeowners Loan Program (EHLP) to cure tax and insurance delinquencies associated with reverse mortgages. According to a report published earlier this […]

NRMLA Supports FTC Proposal to Eliminate Deceptive Mortgage Advertising

A proposed rule from the Federal Trade Commission to ban deceptive mortgage ads has the support of the National Reverse Mortgage Lenders Association according to a letter submitted to the agency. “NRMLA believes that it and the FTC have a shared best interest in providing consumers with accurate and non-misleading information to facilitate informed decisions,” […]

Commission Proposes Scaling Back Mortgage Interest Tax Deduction; Housing Advocates Push Back

Last week the co-chairs of the National Commission on Fiscal Responsibility and Reform — a non-partisan task force faced with coming up with creative and fair ways to reduce federal spending, reduce national debt and balance the budget — proposed scaling back the mortgage interest tax deduction among its various ideas in a 50-page proposal. […]

Risk Retention Guidelines Could Increase Reliance on FHA Loans

As part of the Dodd-Frank Wall Street Reform and Consumer Protection Act (DFA), regulators are required to establish a “Qualified Residential Mortgage” that will be exempt from risk retention requirements. “The potential impact on the availability of credit stemming from the QRM risk retention exemption cannot be overestimated,” said the Mortgage Bankers Association in a […]