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FHA backed $4.5B in mortgages without required flood insurance

Housing Wire

The Federal Housing Administration insured thousands of mortgages in 2020 without the mandatory flood insurance coverage. billion, an audit released this week by the Department of Housing and Urban Development Office of Inspector General found. FHA does not permit borrowers to opt for private flood insurance.

Insurance 397
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Federal Reserve fines Regions Bank $2.95 million for ‘unsafe’ flood insurance program

Housing Wire

million for “unsafe and unsound practices in its flood insurance compliance program and for flood insurance regulatory violations,” according to the Fed. We took corrective action and remediated the issue by 2017. -based Regions Bank $2.95

Insurance 370
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FHA finalizes updates to reverse mortgage debenture interest rates

Housing Wire

19, 2017, which went into effect later that year. 19, 2017,” FHA said in its announcement. The rule also reaffirms the interest rate used for the payment of debenture interest for HECM claims to align with the January 2017 rule. HERMIT was launched by HUD in October 2012 after a protracted development cycle.

Mortgage 459
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HUD and FHFA Increase Transparency in Home Appraisals

Appraisal Buzz

Department of Housing & Urban Development (HUD) have released new appraisal data from loan applications on single-family mortgages submitted to HUD’s Federal Housing Administration (FHA). The appraisal-level PUF for FHA-insured mortgages contains details on approximately 266,000 single-family appraisals conducted from 2017 through 2022.

Appraisal 409
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FHA proposes updates to reverse mortgage debenture interest rates

Housing Wire

The draft Mortgagee Letter (ML) “proposes updates to HUD’s calculations for the payment of debenture interest for HECM claims and establishes a process for retroactively adjusting the calculation of debenture interest for claims filed on HECMs that became due and payable on or after September 19, 2017,” FHA said in an announcement of the proposal.

Mortgage 443
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CFPB orders Fay Servicing to pay $2M over illegal foreclosure practices

Housing Wire

A CFPB order issued on Wednesday mentions violations of mortgage servicing laws and of a previous 2017 order that addresses the same issue. Fay Servicing “failed to implement the 2017 measures and continued to break the law,” the CFPB claims.

Law 434
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Amid a climate crisis, some good news for Florida’s housing market

Housing Wire

Not surprisingly, the state also has the highest average cost for homeowners insurance , and that cost is rising. That’s a lot of opportunity for property damage, and one reason homeowners insurance in Florida has gotten out of control. And insurance has more to cover than ever in some Florida counties.