The Consumer Financial Protection Bureau is taking aim at mortgage “junk fees” yet again, this time in the servicing sector.
The bureau released supervisory highlights addressing what it classifies as illegal junk fees, such as prohibited fees, deceptive notices sent to homeowners, and violations of loss mitigation rules.
“Homeowners cannot just simply switch providers if their mortgage servicer charges them illegal junk fees,” said CFPB Director Rohit Chopra.
“Since mortgage borrowers are captive to a company they never chose to do business with, we are working hard to detect and deter violations of law.”
Servicers were found to have charged property inspection fees banned by Fannie Mae and late fees greater than allowed by their mortgage agreements. They also failed…
By ERIN FLYNN JAY
The Dutch offer home mortgages with interest rates that go down automatically as the loan gets paid off. The premise is that as the loan amount reduces and the property’s value increases, the risk associated with the loan decreases.
Dutch-style mortgages recently arrived in the United Kingdom and have been making headlines here in the United States as people ask whether these types of mortgages could be a solution to the housing market’s woes.
Nathan Hartseil, branch manager for Main Street Home Loans in Hingham, Mass., doesn’t think so due to the fact our mortgages are based on a secondary market.
“Most of our loans are transferred or sold to a secondary market, and that’s what…
The Department of Housing and Urban Development announced a final rule aimed at boosting homeownership for Native American families.
The final rule “clarifies the rules governing Tribal participation in the program” while establishing underwriting requirements, rules on the closing and endorsement process, stronger and clearer servicing requirements, as well as other updated standards. It is designed to increase lender participation in the Section 184 Indian Housing Loan Guarantee program and strengthen regulations to align with its current needs.
HUD says it worked closely with Tribal leaders to create a program that would genuinely boost homeownership in their communities. The new regulations increase borrower protections and “encourage new lender participation.”
“Homeownership is key to building generational wealth. By enhancing the Section…
The U.S. Department of Housing and Urban Development named Andrew Lofton as Regional Administrator for the Northwest, according to a press release.
Lofton will oversee HUD operations in Alaska, Idaho, Oregon, and Washington, representing the department while working with state and local officials on housing issues.
“It is an honor to serve the Biden Harris Administration and the people in the great Northwest, where I am blessed to call home,” said Lofton.
Lofton lives in Washinton, where he was born. He will be responsible for overseeing the delivery of HUD programs and services to these states while evaluating their efficiency and effectiveness.
“We are excited to welcome Andrew Lofton as the Regional Administrator for HUD’s Northwest Region,” said Acting Secretary…
By ERIN FLYNN JAY
The concept of mortgage porting, or transferring the terms of an existing loan over to a new property, has gained popularity as Americans locked into low interest rates try to figure out ways to navigate the current housing market.
It is estimated that trading up to a 25% more expensive home would more than double the average mortgage holder’s monthly payment at current interest rates. Even moving to a similarly-priced home in the same neighborhood would increase principal and interest payments by 40%.
Advocates for portable mortgages say if homeowners could keep their current interest rates, they would be more likely to sell their homes and buy a new one. That, in turn, would help unfreeze…
The Biden administration’s move to cap rent increases for affordable housing units has split support in the industry.
Officials announced last week that the administration will impose a 10% cap on YOY rent increases for property owners who are part of the Low-Income Housing Tax Credit program.
Currently, LIHTC allows increases of 5% or double the percentage change in national median income, whichever is higher. The proposal would limit rent increases on these properties to no more than 10% annually, doing away with the income change option.
Proponents say the plan would help stabilize housing for low-income Americans reliant on subsidized housing.
“The decision to prevent egregious rent increases is an important win for the millions of renters living in…
By KIMBERLEY HAAS
In a move that was not surprising, members of the Federal Open Market Committee held the target range for the federal funds rate steady at 5.25% to 5.5% at their meeting this week.
Inflation has eased over the past year but committee members do not believe it will be appropriate to reduce rates until they have gained more confidence inflation is moving sustainably toward 2%, which has been their goal.
Federal Reserve Chair Jerome Powell said during a press conference on Wednesday afternoon that inflation may not reach 2% until 2026 but it is likely rates have hit their peak and the committee plans to start dialing them back at some point this year.
Powell did not…
Huge changes to Realtors’ commission structures may disadvantage VA buyers, at least in the short term.
A $418 million settlement announced by the National Association of Realtors last week is set to have sweeping implications for the housing industry in general. If approved by a federal judge, it would undo NAR’s commission structure, which is typically between 5.5% and 6% and split between buyer’s and seller’s agents.
Under the terms of the settlement, moving forward sellers will be expected to negotiate with real estate professionals, and buyers will have to enter into agreements with, and pay for, their own realtors.
For some buyers, this may translate into a cheaper overall experience, depending on what is negotiated for as part of…
By PATRICK LAVERY
Kicking the can down the road, moving the goalposts – whatever idiom you want to use – such an expression will likely be appropriate for this week’s meeting of the Federal Open Market Committee, which appears poised to hold the target range for the federal funds rate steady at 5.25% to 5.5%.
While that margin has not been raised since last summer, there has been hope that at some point in 2024, Federal Reserve Board chairman Jerome Powell will come to the microphone at the conclusion of one of the FOMC’s two-day summits and announce the beginning of a rollback of the series of rate hikes that steadily climbed from near-zero in early 2022 to their current…
Marcia L. Fudge, secretary of the U.S. Department of Housing and Urban Development, is unexpectedly resigning due to personal circumstances.
Her exit comes after three years at HUD’s helm, having served for almost all of the Biden presidency.
Fudge attributed her decision to her 92-year-old mother, with whom she wants to spend more time, and says she has no plans to run for office again.
“It’s time to go home,” Fudge told USA Today. “I do believe strongly that I have done just about everything I could do at HUD for this administration as we go into this crazy, silly season of an election.”
Fudge will be just one of a few cabinet members to leave the Biden administration, giving…
