Servicing

Presidential hopefuls remain quiet on subjects related to housing finance reform ├â┬ó├óÔÇÜ┬¼├óÔé¼┼ô except when it comes to politics. With former House Speaker Newt Gingrich trumping former Massachusetts Gov. Mitt Romney in the South Carolina primary Saturday, the latter went on the attack Monday by reportedly criticizing his opponent for a $1.6-million contract he signed with Freddie Mac to advise the GSE at one time. These rows touch offer the only debate for candidates over housing, signaling only peripheral discussion of a still-lagging sector.

Three new banks went under Friday, marking the first for 2012 since state and federal regulators closed 92 financial institutions last year. State regulators in Florida and Georgia shuttered Central Florida State Bank and The First State Bank in Belleview and Stockbridge, respectively. The Office of the Comptroller of the Currency closed American Eagle Savings Bank in Boothwyn, Pennsylvania. The latest bank failures mark the first three for 2012. Last year saw 92 closures nationally, while 2010 bore witness to 157 bank failures.

Mark another big team-up for mortgage pricing company LoanSifter. On Wednesday the company announced that it will now include price quotes for Radian Guaranty Inc. in its pricing engine. The price quote from Radian will appear in LoanSifter's mortgage insurance best execution pricing platform. This is the next big thing for LoanSifter, which recently signed a deal with Google that allows it to facilitate comparison of loan products among many providers via a new technology platform.

Ahead of the primary in South Carolina Saturday, Republican presidential hopefuls will compete for the chance for a face off with President Barack Obama ├â┬ó├óÔÇÜ┬¼├óÔé¼┼ô a contest remarkably lacking in housing proposals for one that will take place in 15 battleground states with slipshod home values. The Progressive Policy Institute issued a policy brief Friday that said home values have fallen by 16 percent since October 2008, and that ├â┬ó├óÔÇÜ┬¼├óÔé¼┼ô despite a correspondingly steep drop in household wealth ├â┬ó├óÔÇÜ┬¼├óÔé¼┼ô few voters should expect candidates from either party to address housing finance reform in the election.

The Federal Housing Administration finalized a new rule Friday that makes it tougher to qualify for loans insured by the agency. To qualify for mortgage insurance, lenders must offer up evidence that their seriously delinquent and claim rates remain at or below 150 percent of aggregate rates in home states. The rule authorizes more extensive examination for lenders in order to ensure that they are able to meet the FHA├â┬ó├óÔÇÜ┬¼├óÔÇ×┬ós new qualifications. It requires that certain lenders indemnify HUD in claims over loans. The move arrives amid criticism that diminishing capital for the FHA may necessitate its bailout.

Make room for another departure from the federal housing community. On Friday the Federal Home Loan Bank of Cincinnati announced that president and CEO David Hehman planned to retire, concluding a career he started with the institution in 1977. The Federal Home Loan Bank├â┬ó├óÔÇÜ┬¼├óÔÇ×┬ós board of directors selected Andrew Howell, currently EVP and COO for the financial institution, to succeed the outgoing president. Hehman first arrived at the Federal Home Loan Bank in 1977, when he left his position as assistant professor of economics and finance at Xavier University.

Existing-home sales climbed by 5 percent in December as more consumers felt the confidence needed to move forward with home purchases. The National Association of Realtors reported the figures Friday, showing that total existing-home sales ├â┬ó├óÔÇÜ┬¼├óÔé¼┼ô those sales in the process of closing ├â┬ó├óÔÇÜ┬¼├óÔé¼┼ô moved forward to 4.61 million in December, up from 4.39 million in November. The trade group said that existing-home sales arrived at 4.26 million, reflecting a 1.7 percent rise from 4.19 million last year. All-cash sales reflected about 31 percent of purchases in December, up from 28 percent in November.

The economy and housing market enter the New Year with mixed results, and will likely remain that way for at least the first part of 2012, Freddie Mac forecasted in a report Thursday. Citing numerous indices in his outlook, Frank Nothaft, VP and chief economist with Freddie Mac, predicted that economic growth will likely hit 2.1 percent in the first quarter, up from the doldrums during the financial crisis. He said that U.S. unemployment will likely remain around 8.5 percent following a reversal for seasonal job growth.

A survey released Wednesday found that more mortgage originators fear the effects of legislation for their industry than from any other challenge. Releasing the Second Annual Survey of Originator Opinions, mortgage industry recruiting firm Hammerhouse LLC polled about 400 active loan originators across the country on issues that ranged from regulation to technology. Asked which challenge felt the greatest for loan originators in 2012, 51 percent said oversight and legislation could crimp the industry.

Housing starts declined by 4.1 percent on a seasonally adjusted basis in December, even while figures for single-family homes climbed year-over-year, offering signs that it may unseat multifamily construction after several months. Single-family housing starts went up 4.4 percent at a seasonally adjusted rate of 470,000, with the December rate for building construction with five units or more hovering around 147,000. Building permits crept forward to an annual rate of 679,000, a 7.8-percent increase year-over-year and 0.1-percent annual increase month-over-month.