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ยป Compiled by the DS News Staff VISIT US ONLINE @ DSNEWS.COM PAGE 29 FIVE MINUTES WITH GERARDO ASCENCIO PRESIDENT OF THE NATIONAL ASSOCIATION OF HISPANIC REAL ESTATE PROFESSIONALS inside the journal // movers & shakers // on the web // the app spectrum FHA Ends Year with Deficit but Debunks Bailout Concerns Vintage loans their mortgages to take brought the advantage of lower Losses on loans Federal Housing borrowing costs. On insured between Administration's (FHA) top of these refi losses, Mutual Mortgage fiscal years 2007 and those who don't qualify Insurance (MMI) Fund 2009 are straining for a new loan and to its knees in fiscal continue to pay at high FHA's fund, with year 2012, but the rates are at greater risk agency insists it does $70 billion in claims of default. not immediately need In a financial status attributable to loans to draw from Treasury. report issued to from those years. Congress, however, A review conducted by an independent actuary HUD says the agency found the capital is not down and out just yet. "This does reserve ratio of the agency's MMI Fund not mean FHA has insufficient cash to fell below zero to negative 1.44 percent, pay insurance clams, a current operating representing a negative economic value deficit, or will need to immediately draw of $16.3 billion. funds from the Treasury. The need to According to FHA, losses on loans draw on Treasury funds is determined insured between fiscal years 2007 and not by the economic assumptions of this 2009 are straining the fund, with $70 actuarial review but those used in the billion in FHA claims attributable to loans president's FY 2014 budget proposal to insured in those years. The agency also be released in February," HUD explained. saw losses from the ongoing effect of The report to Congress identifies seller-funded down payment assistance loans. Though the practice ended in initiatives that would reduce the 2009, the expected cost of loans made likelihood of a Treasury draw, including before that time is more than $15 billion. the expansion of foreclosure alternative Low interest rates have also been programs and an increase in annual a problem for FHA. While the overall insurance premiums. The final economy is benefiting from record-low determination on a potential Treasury rates, the federal mortgage insurer is draw will be made next September when taking losses as homeowners refinance FHA's 2013 fiscal year ends. A look at facts you didn't know you couldn't live without The five largest U.S. servicers provided $26.11 billion in mortgage relief to 309,385 homeowners through September as part of the National Mortgage Settlement. top10 Take a look inside the numbers data b i t s Most REOs Added to Inventory in October California7,813 Florida7,301 Georgia3,788 Illinois3,734 Michigan3,622 Ohio3,039 Arizona2,821 Texas2,552 North Carolina 1,440 Colorado1,317 Fewest REOs Added to Inventory in October North Dakota 3 District of Columbia 9 Vermont22 South Dakota 27 Alaska28 Wyoming31 Montana45 Maine55 West Virginia 56 Nebraska59 Source: RealtyTrac Eligible borrowers have until December 31 to request an independent foreclosure review from one of 14 mortgage servicers subject to regulatory consent orders. 11