Other Federal Agencies & GSEs – Page 5 – Consumer Financial Services Watch

Senators Attempt to Chip Away at Housing Reform with “Jumpstart GSE Reform Act” and Budget Amendment

Mar 26 2013

Senators Bob Corker (R-TN), Mark Warner (D-VA), David Vitter (R-LA), and Elizabeth Warren (D-MA) have introduced legislation that, if enacted, may make a partial dent in the U.S. housing reform effort. The “Jumpstart GSE Reform Act” (the “Legislation”), introduced on March 14 in the Senate Committee on Banking, Housing and Urban Affairs (the “Senate Banking Committee”), would prevent any increase in guarantee fees (“g-fees”) imposed by Fannie Mae and Freddie Mac (the “GSEs”) from offsetting other government spending. The Legislation would also prohibit the sale of GSE preferred stock by the United States Treasury (the “Treasury”) without Congressional approval and structural housing finance reform. Furthermore, on March 22, Senator Tim Johnson (D-SD), chairman of the Senate Banking Committee, offered a bipartisan amendment (the “Amendment”) to the Senate budget that would prohibit Congress from using g-fee increases to offset additional government spending. The Amendment was agreed to in the Senate by unanimous consent. Although this budget will not become law, the Amendment shows growing support for this issue. Read More

Federal Reserve Staff Offer UDAP Guidance

Mar 26 2013

By: Soyong Cho , David I. Monteiro

On Tuesday, March 5, senior staff with the Board of Governors of the Federal Reserve System and the Federal Reserve Bank of San Francisco presented a webinar on the prohibitions on unfair and deceptive practices under the Dodd-Frank Act and the Federal Trade Commission Act, and presented a number of case studies and compliance pointers, based on the Federal Reserve’s own enforcement and investigatory matters. Read More

App Lets Users File Discrimination Complaints from Mobile Device

Feb 28 2013

By: Stephanie C. Robinson

In an effort to reach more consumers, HUD’s Office of Fair Housing and Equal Opportunity launched a new mobile app for iPhone and iPad today. The app gives users instant access to HUD’s online housing discrimination complaint form and information about fair housing rights. After downloading the app, consumers and fair housing advocacy groups will have what HUD Assistant Secretary for Fair Housing and Equal Opportunity John Trasviña called “faster and easier” access to the complaint form. This makes sense for repeat complainants like fair housing advocacy organizations. But for the average consumer looking to file a discrimination complaint, downloading an app rather than visiting HUD’s web site seems like an unnecessary extra step. In any case, the app is a valiant attempt by HUD to follow the CFPB’s lead in maximizing technology to reach out to consumers.

Ginnie Mae Goes Electric

Feb 05 2013

By: Phillip L. Schulman , *Nathan Pysno
*Mr. Pysno is not admitted to the D.C. Bar; currently admitted to the Maryland Bar.

Beginning January 1, 2013, issuers of Government National Mortgage Association (“Ginnie Mae”) mortgage-backed securities must submit their insurance and annual audited financial statements electronically. From June 1, 2012 through December 31, 2012, issuers had the option to submit their documents electronically or by mail in paper form. Before June 1, 2012, Ginnie Mae only accepted submissions in paper form. Documents that must be submitted electronically include annual audited financial statements, including required supplemental reports, fidelity bond insurance renewal forms, and errors and omissions insurance renewal forms.

Additional information on filing procedures, file-naming formats, and other instructions is available in Ginnie Mae’s Mortgage-Backed Securities Guide 5500.3 Rev. 1, Appendix VI-20 and in All Participant Memorandum (APM) 12-09: Electronic Submission of Issuers’ Insurance and Annual Audited Financial Documents. Both of these documents are available on the Issuer Resources page of Ginnie Mae’s website.

FHA Announces Upcoming Changes to Strengthen the Mutual Mortgage Insurance Fund

Dec 03 2012

By: Phillip L. Schulman, Krista Cooley

The U.S. Department of Housing and Urban Development’s recently announced that an independent actuarial review of the FHA Mutual Mortgage Insurance (MMI) Fund found that the Fund’s capital reserve ratio has fallen to -1.44%, which represents a negative economic value of $16.3 billion. In the wake of this announcement, HUD unveiled a series of aggressive steps it intends to take over the next several months. According to the Annual Report provided to Congress earlier this month, FHA lenders will have to contend with several policy changes to FHA origination and servicing requirements in the coming year, as well as to the Home Equity Conversion Mortgage (HECM) program. Read More

FHA and RHS Respond to Hurricane Sandy

Nov 30 2012

By: Holly Spencer Bunting , Kathryn M. Baugher

In the wake of Hurricane Sandy, both the U.S. Department of Housing and Urban Development (“HUD”) and the Rural Housing Service (“RHS”) have issued guidance intended to help homeowners with government insured or guaranteed loans who were affected by the storm. With regard to loans insured by the Federal Housing Administration (“FHA”), the guidance is a combination of reminders about existing relief or insurance programs available to assist disaster victims and new policies designed to aid borrowers in the process of obtaining FHA financing for properties impacted by natural disasters. With regard to RHS-guaranteed loans, the guidance focuses on foreclosure and loss mitigation relief available to borrowers impacted by Hurricane Sandy. Read More

FHA Issues Annual Financial Report to Congress

Nov 27 2012

By: Phillip L. Schulman, Krista Cooley

On Friday, November 16, 2012, the U.S. Department of Housing and Urban Development released its 2012 Annual Report to Congress and announced that the FHA Mutual Mortgage Insurance (MMI) Fund suffered a $16.3 billion deficit. In addition, for the fourth year in a row, the MMI Fund has failed to meet its 2% statutory reserve amount, an amount required under the National Housing Act to be held back to cover excess loss.

Rural Housing Service Publishes Final Rule Regarding New Annual Fee

Jul 11 2012

By: Kathryn M. Baugher

The U.S. Department of Agriculture’s Rural Housing Service (RHS) today published a final rule implementing the new annual fee that will be charged on all RHS-guaranteed single family housing loans obligated on or after October 1, 2011.

The Housing Act of 1949 was amended in July 2010 to authorize RHS to charge an annual fee. The purpose of the annual fee is to make the RHS loan guarantee program “subsidy neutral,” meaning that it will not require taxpayer funding to continue operating at its current size. While RHS acknowledges that the annual fee will increase the cost of RHS-guaranteed loans for borrowers (by approximately $20 per month for the average loan), RHS believes that the annual fee is necessary to avoid a reduction in the size of the program, which would result in fewer RHS-guaranteed loans being made. Read More

FTC Mobile Payments Workshop: Providers Are Poised to Take Steps Forward. How Will Regulators Respond?

May 02 2012

By: Eric Mitzenmacher

On April 26th, the FTC gathered private sector representatives, regulators, and academics for a workshop to discuss the state of the mobile payment industry. Some commentary has interpreted regulators’ comments at the workshop to be a signal that regulators intend to use a “light touch” as the industry matures, but the phrase only partially hits the mark. Read More

Catagory:Other Federal Agencies & GSEs