July 12, 2018

FHA False Claims Actions Among Industry Concerns

Mortgage Daily--Mortgage Daily Staff

Among the concerns shared by attendees at a recent secondary marketing conference is the legal uncertainty accompanying government-insured originations. A majority want a company-wide production management dashboard. 

The Mortgage Bankers Association hosted its annual National Secondary Market Conference & Expo in New York City during May.

According to the trade group, attendees included industry leaders and decision makers from residential and capital markets and the mortgage banking community.

In attendance at the event was Genworth Mortgage Insurance, which said it surveyed 105 of the mortgage industry professionals who showed up.

One of the biggest challenges facing the mortgage market is rising interest rates, which was cited by nearly half of those surveyed.

Genworth Mortgage Insurance President and Chief Executive Officer Rohit Gupta noted in the report, "Rising interest rates and inflation, when combined with today's inventory shortage, are accelerating home price appreciation, causing some lenders and consumers to explore less-tested methods for financing home purchases."

Another 30 percent pointed to alternative credit products as the biggest challenge to the sector. 

Richmond, Virginia-based Genworth reported that 44 percent of industry executives believe that removing legal uncertainty surrounding the origination of loans insured by the Federal Housing Administration is the best way to improve access to mortgage credit.

Federal Housing Commissioner Brian D. Montgomery told reporters Tuesday that FHA will be scaling back its use of the False Claims Act against FHA mortgagees, according to an article by HousingWire.

False Claims Act actions cost home lenders triple damages and have forced major mortgage players to abandon FHA lending.

Another 30 percent of conference attendees said that lowering compliance costs is the best way to increase access to credit.

Genworth reported that a majority of survey participants want easily customizable dashboards for organization-wide production management integrated into their loan origination systems.


View Article Source →

Agency | GSE News