A look at stories across HousingWire's weekend desk, with more coverage to come on bigger issues:
Treasury Department Secretary Timothy Geithner told NBC's "Meet the Press" Sunday that Republicans recently assured the Obama administration that an agreement to raise the debt ceiling would be reached.
The U.S. is expected to reach its $14.3 trillion borrowing limit by the middle of May. If Congress doesn't raise the debt ceiling by then, the country may default on some liabilities.
Geithner said "you can't play around" with that possibility.
Beginning Monday, the Federal Housing Administration increased the annual mortgage insurance premium on all 30-year and 15-year loans by 25 basis points.
On loans with amortization terms greater than 15 years, the FHA's annual mortgage insurance premium will increase to between 110 and 115 basis points. For loans with amortization terms of 15 years or less, the annual premium is set to rise between 25 and 50 basis points.
The FHA made the adjustment as part of its effort to bring its mutual mortgage insurance fund back to the congressional mandated 2%, then FHA Commissioner David Stevens said in February. Bob Ryan replaced Stevens when he decided to leave for the Mortgage Bankers Association in March.
"After careful consideration and analysis, we determined it was necessary to increase the annual mortgage insurance premium at this time in order to bolster the FHA’s capital reserves and help private capital return to the housing market,” Stevens said.
Closing arguments are set to take place Monday morning in the case against Lee Farkas, the former CEO of failed mortgage lender Taylor, Bean and Whitaker.
The federal government brought 14 counts of bank, wire and securities fraud against Farkas earlier this year. According to U.S. prosecutors, Farkas and co-conspirators at Colonial Bank allegedly devised a scheme that began in early 2002 to cover up cash flow problems. Court documents show the scheme allegedly led to the misappropriation of more than $1 billion.
Last last week, Rep. Maxine Waters (D-Calif.) introduced legislation to making modifications and principal reductions on delinquent mortgage loans mandatory in light of the recent servicing problems. It establishes a requirement for single point of contact and reforms the short sale process.
Waters said the recent settlement between the Office of the Comptroller of the Currency, the Federal Reserve, the Office of Thrift Supervision and 14 mortgage servicers was not harsh enough on the banks.
"In light of the slap of the wrist our regulators are preparing to give 14 servicers who admitted to breaking the law, legislation to require loss mitigation prior to foreclosure is needed now more than ever before," Waters said. "It’s the only way to protect homeowners and to prevent foreclosures."
Waters added that it is the first of several bills she plans to submit in order to further regulate the servicing industry.
Barclays Capital analysts said in a report that credit availability for homeowners should improve in the private market, but by how much depends on the latest restrictive regulation such as risk-retention.
"We expect credit availability to improve, but only gradually, due to pressure on housing and impending regulation," analysts said in a report released over the weekend.
More borrowers in jumbo prime mortgages are eligible for refinancing than any other product type. However, analysts said prepays should increase gradually across all sectors, according to their scenarios.
There were six bank closings over the weekend, bringing the total number for the year to 34. In 2010, there were 156 failures.
The Office of Thrift Supervision closed Superior Bank in Alabama. Newly chartered Community Bancorp in Houston, Texas assumed all $2.7 billion in total deposits and purchase essentially all $3 billion in assets. The Federal Deposit Insurance Corp. estimates the closing to cost the DIF $1.84 billion.
The Alabama Banking Department closed Nexity Bank. Newly chartered AloStar Bank of Commerce assumed all $637.8 million in total deposits and purchase essentially all $793.7 million in total assets. The closing is expected to cost the DIF $175.4 million.
The Georgia Department of Banking and Finance closed two banks. The first was Bartow County Bank. Georgia-based Hamilton State Bank agreed to assume all $304.1 million in deposits and purchase roughly $330.2 million in assets. The FDIC estimates the closing to cost the deposit insurance fund $69.5 million.
The second Georgia closing was New Horizons Bank. North Carolina-based Citizens South Bank agreed to assume all $106.1 million in deposits and purchase essentially all $110.7 million in assets. The closing is expected to cost the DIF $30.9 million.
The Mississippi Department of Banking and Consumer Finance closed Heritage Banking Group. Jackson, Miss.-based Trustmark National Bank will assume all $196.2 million in deposits and will purchase essentially all $224 million in assets. The FDIC estimates a $49.1 million cost to the DIF.
The OCC closed Rosemount National Bank in Minnesota. Central Bank assumed all $36.6 million in deposits and purchase essentially all $37.6 million in assets. The closing is expected to cost the DIF $3.6 million.
Write to Jon Prior.
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