Obsolete Certainty

In the wake of the passage of Wall Street Reform, which many opponents have criticized Capitol Hill for failing to deal with the future of Fannie Mae and Freddie Mac, the Obama Administration is beginning to present the broad outlines of how the future of the GSEs will be determined. In a letter released Tuesday , David H. Stevens, acting commisioner of the FHA, said that the question of reforming the GSEs is "not if, but when." The Obama administration, he said, has made it clear from the beginning that the current structure of the government's role in the housing finance market is unsustainable and unacceptable, but winding down Freddie and Fannie abruptly would destabilize an already fragile housing industry and put the loans already on the books of these institutions at even…(read more)

Global Markets Overview: Investors are turning very selective about risk, as shares decline while some currency markets embrace chancier assets

NEW YORK (Reuters) – Wall St futures pointed to a firmer start for equities, after gains in Europe. The Dow closed lower in the previous session on weak durable goods data and a downbeat assessment of the economy from the Fed’s Beige Book.

HUD is preparing to implement a few new policies that will no doubt affect your pipeline/loan application process. Last week, HUD and the FHA invited public comment on three of those policy changes, which are part of FHA's strategy to "strengthen their capital reserves". The proposed changes which are either tweaks to other recent revisions or have been telegraphed by FHA and HUD in earlier Congressional testimony, notices to lenders, or press releases will: Update the combination of credit and down payment requirements for new borrowers Reduce allowable seller concessions from six to three percent. Tighten underwriting standards for manually underwritten loans FHA has been scrambling to strengthen its financial situation since an audit late in 2009 showed that the capital ratio…(read more)

NEW YORK (Reuters) – U.S. stocks fell on Wednesday after weak durable goods figures and a downbeat assessment of the economy from the Fed’s Beige Book kept the benchmark S&P 500 trapped below its 200-day moving average.

NEW YORK (Reuters) – Stock index futures pointed to a higher open for Wall Street on Wednesday, after stocks closed mixed a day earlier, with investors likely to focus on earnings from Boeing and Visa among others to provide direction for equities.

The Federal Housing Administration's Mortgagee Review Board (MRB) has revealed a list of over one thousand lenders against whom it has taken action over the last several months for violations of the agency's program requirements. Infractions ranged from failing to notify the Department of Housing and Urban Development of changes in license status or office closures, improperly displaying FHA seals on company websites or advertising materials, and using non-employees to process loans, to failing to properly process or document credit, employment and appraisal information. The actions taken by the Board included permanent withdrawal of FHA lending authority, suspensions, and fines ranging into the high six digits. "Lenders should know by now that FHA will not tolerate fraudulent…(read more)

NEW YORK (Reuters) – The Dow industrials and the S&P 500 eked out slim gains, while the Nasdaq dipped on Tuesday as a sharp drop in July consumer confidence curbed the enthusiasm stirred by more robust earnings.

HONG KONG (Reuters) – Asian stocks pulled back slightly from two-and-a-half month highs hit earlier on Tuesday after upbeat U.S. housing data, while the euro neared 2-month peaks on relief over stress tests on European banks.