Massachusetts mortgage company founder jailed for defrauding Ginnie Mae out of $2.5 million

Mortgage Security founder Robert Pena gets 32 months in prison
The founder and president of a defunct Massachusetts mortgage company will spend nearly three years in prison after admitting to defrauding Ginnie Mae out of approximately $2.5 million. Court documents show that starting in 2011, Mortgage Security founder Robert Pena began diverting money borrowers sent to MSI into private bank accounts, which he then used to pay for personal and business expenses.
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LendingTree: First-time homebuyers struggle to navigate home lending

Only 30% of borrowers look at more than 1 lender when searching for a home loan
LendingTree recently released an analysis that compares the borrowing patterns of first-time buyers to repeat mortgage borrowers. The report determined that just 24% of first-time homebuyers claim to be very familiar with the different types of mortgages available to them.
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Waterstone Mortgage founder launches tech-focused mortgage company

Announces launch of Novus Home Mortgage
Waterstone Mortgage founder Eric Egenhoefer has joined Panorama Mortgage Group as co-managing partner, launching a new brand extension, Novus Home Mortgage. Novus Home Mortgage is a residential lender operating in more than 35 states that aims to simplify the mortgage process using cutting-edge digital solutions, smartly leveraging the resources of its parent company to maximize returns.
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GE's subprime lender WMC Mortgage files for Chapter 11 bankruptcy

Comes weeks after GE agreed to pay $1.5 billion fine for WMC's activities
General Electric is moving closer to putting its failed attempt to capitalize on the subprime lending boom into its rearview mirror. Earlier this month, GE agreed to pay a fine of $1.5 billion as part of a settlement with the Department of Justice over the pre-crisis lending activities of the company's shuttered subprime lending unit, WMC Mortgage. And this week, WMC Mortgage filed for Chapter 11 bankruptcy.
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HUD sued over new down payment assistance rules for FHA mortgages

Native American group claims "unlawful destruction" of down payment program
Last week, HUD announced it was issuing new rules for down payment assistance on FHA mortgages. According to HUD and the FHA, the new rules were meant to provide clarity around what documentation would be required for borrowers who are using funds from another source to cover part of the their down payment. But, according to one group, those rules do much more than that. And now, the group is suing HUD to get the rule change overturned.
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Fannie Mae: Most Americans can't afford to live in thriving neighborhoods

Lack of affordable housing forces 6 in 10 Americans to sacrifice economic opportunities
Housing affordability has been a tremendous concern for Americans across the country, especially as affordability conditions now sit at a 10-year low. In order to identify innovative solutions to the nation’s affordability crisis, Fannie Mae has launched the third and final phase of its Sustainable Communities Initiative.
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White House announces long-awaited updates to Opportunity Zone rules

Clarifies regulations to encourage more development
The Treasury Department released a second round of rules clarifying requirements for Opportunity Zones recently in a move designed to encourage more development in low-income areas. The new rules are intended to make it easier for developers looking to take advantage of the tax breaks promised by investing in Opportunity Zones, and clear up some of the confusion that was holding investors back.
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Bloomberg: Morgan Stanley and JPMorgan improve views of mortgage bonds as spreads widen

Morgan Stanley tells investors to “go long” on Agency MBS
Morgan Stanley is telling investors to “go long” on mortgage bonds and JPMorgan has raised its view of agency MBS, according to an article by Bloomberg News. The investment banks cited a wider spread between the 30-year Fannie Mae current coupon and various measures of Treasury bonds to back up their recommendations, Bloomberg reporter Christopher Maloney wrote.
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MBA: Geopolitical headwinds dampen mortgage application growth

The Market Composite Index drops 7.3% from the previous week
As geopolitical turmoil mounts, mortgage applications retreated further for the week ending April 24, 2019, according to the newest data from the Mortgage Bankers Association. According to MBA's weekly Mortgage Applications Survey, on an unadjusted basis, the Market Composite Index dropped 7.3% from the previous week.
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