Administration Proposes Modernizing Mortgage Lending

Filed in Codes and Standards by on August 3, 2018 0 Comments

money house conceptThe Treasury Department released a report on July 31 addressing advances in financial market technology and related changes in the delivery of financial services. The report includes recommendations for legislative and regulatory action to streamline and modernize mortgage lending and servicing.

Specifically in the area of home mortgages, the Treasury recommends that:

  • Congress appropriates the funding that FHA has requested for its technology upgrades.
  • Congress update appraisal requirements to account for the development of automated and hybrid appraisal practices; and FHA and other government loan programs develop enhanced automated appraisal capabilities.
  • HUD establish transparent standards in determining which violations it considers to be material to assist the Department of Justice in determining which knowing defects to pursue under the False Claims Act.
  • Federally supported loan programs explore standardizing loss mitigation programs; and states pursue the establishment of a model foreclosure law.
  • Ginnie Mae, FHFA and state bank regulators expand and align standard reporting requirements on nonbank counterparty financial health.

View an executive summary and the full report.

For additional information, contact Jessica Lynch at 800-368-5242 x8401.

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