Category: Mortgage News

Brian McKay via Monitor Bank Rates

Mortgage rates are barely changed this week over last. Today’s mortgage rates on 30 year mortgage loans are averaging 4.13%, a slight increase from last week’s average 30 year mortgage rate of 4.11%. Average mortgage rates on 15 year mortgages are higher this week averaging 3.42%, an increase from last week’s average 15 year mortgage rate of 3.39%.

Compare current mortgage rates from several lenders by using our rate tables here: Current Mortgage Rates . Unlike most websites, no personal information is needed to view a list of mortgage rates.

30 year jumbo mortgage rates are averaging 4.61%, up from last week’s average 30 year jumbo mortgage rate of 4.55%. 15 year jumbo mortgage rates are averaging 3.89%, down from last week’s average 15 year jumbo mortgage rate of 4.90%.

Mortgage Rates

Conforming Adjustable Loans – Today’s Mortgage Rates

1 year adjustable mortgage rates today are averaging 3.79%, up from last week’s average 1 year adjustable jumbo mortgage rate of 3.77%.

3 year adjustable mortgage rates today are averaging 2.60%, down from last week’s average 3 year adjustable mortgage rate of 2.74%.

5 year adjustable mortgage rates are averaging 2.78%, a decrease from the prior week’s average 5 year adjustable rate of 2.82%.

Current 7 year adjustable mortgage rates are averaging 3.12%, no changed from the previous week’s average 7 year adjustable mortgage rate.

10 year adjustable mortgage rates currently are averaging 3.60%, unchanged from last week’s average 10 year adjustable rate.

Adjustable Jumbo Loans – Mortgage Rates Today

Current 1 year jumbo adjustable mortgage rates are averaging 4.50%, up from last week’s average adjustable jumbo mortgage rate of 4.05%.

3 year adjustable jumbo rates today are averaging lower at 3.42%, down from last week’s average 3 year jumbo adjustable rate of 3.49%.

5 year adjustable jumbo mortgage rates and refinance rates currently are averaging 3.03%, up from last week’s average jumbo adjustable rate of 3.02%.

7 year jumbo adjustable mortgage rates and refinance rates today are averaging 3.57%, unchanged from last week’s average 7 year adjustable home loan rate.

10 year jumbo loan rates and ‘refi’ rates are averaging 3.97%, up from the prior week’s average 10 year jumbo home mortgage loan rate of 3.96%.

Conforming Interest Only Adjustable Loans – Current Mortgage Rates

3 year interest only adjustable mortgage loan rates and refinancing rates are averaging 2.85%, down from last week’s average interest only mortgage loan rate of 3.15%.

5 year IO adjustable loan mortgage rates and mortgage refinance rates are averaging 2.93%, down from last week’s average five year interest only mortgage rate of 3.18%.

7 year interest only adjustable mortgage rates and refinance rates are averaging 3.44%, down from last week’s average 7 year interest-only mortgage interest rate of 3.54%.

Interest Only Jumbo Loans – Today’s Mortgage Rates

Today’s 3 year jumbo interest only adjustable loan rates are averaging 3.58%, down from last week’s average jumbo adjustable interest only rate of 3.67%

Current 5 year adjustable jumbo interest only rates are averaging 3.43%, a decrease from last week’s average IO home mortgage interest rate of 3.44%.

Today’s 7 year jumbo interest only adjustable rates are averaging 3.79%, unchanged from last week’s average jumbo 7 year home mortgage loan rate.

Home Equity Loan Rates – Today’s Home Equity Rates

10 year home equity loan rates are averaging 6.45%, unchanged from last week’s average home equity loan rate.

15 year home equity rates are averaging 6.41%, no change from last week’s average home equity loan rate.

Home Equity Line of Credit – Current HELOC Rates

Home equity line of credit rates currently are averaging 4.81%, unchanged last week’s average rate HELOC rate

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Matthew Campione via Forbes

Around 11 million homeowners, about 25% of all homeowners, owe more debt on their homes than the homes are worth, hence the term “underwater mortgage”. Most were victims of the housing bubble (2004-2008) fueled by easy financing that artificially inflated prices while people were buying houses, or borrowing against their existing homes. The interest rate on these mortgages in most instances is in excess of 6.5% but the homeowners do not qualify for refinancing at current interest rates as low as 4%. This means the homeowner is paying hundreds of dollars and in some instances thousands of dollars more each month than he would otherwise pay if he could refinance at current rates.

Lenders may have already written off a portion of these loans for financial or tax reasons, but the borrower is still treated as owing the entire amount with monthly payments still due per the terms of the mortgage, including payments on amounts the lender may have treated as a loss.  Every month the lenders get the borrowers to make payments on the underwater loans, the lenders receive a windfall of interest payments well in excess of current market interest rates. Lenders actually prefer to keep the homeowner captive to the terms of the mortgage and debt in excess of home value. Imagine how much is being paid on underwater mortgages each month to the satisfaction of the lenders. Every month a homeowner writes a check on an underwater mortgage is another victory for the lender.

It is in this environment the lender plays on the homeowner’s fears and takes advantage of his moral predisposition to pay what he owes. It is obvious that if most people stopped paying on their underwater mortgages lenders would no longer have the luxury of letting the homeowners twist in the wind. Of course, this will not happen because most people fear the stigma of foreclosure and bankruptcy and do not want to be among the first to default in what may not be a mass movement. So most borrowers will act the way lenders are counting on already.

If the President and Congress really want to help these homeowners, a program much broader than HARP (Home Affordable Refinance Program) should be established. For example, legislation could provide for a new subset of a Chapter 11 or 13 bankruptcy for underwater mortgages only, but without the stigma of the B(ankruptcy) word. Under this program underwater mortgages would be modified based on the fair market value of the home, and the net worth and income of the homeowner.

Continuing with this example, homeowners that meet the following criteria would be eligible to participate: (1) home value less than 85% of the mortgage, (2) annual PITI (principal, interest, property taxes and insurance) greater than 30% of homeowner’s adjusted income (mostly cash income less taxes and other specified permitted expenses), and (3) an adjusted net worth (e.g., excluding certain assets that would be exempted in a conventional bankruptcy) less than 25% of the mortgage amount. If the home value is at least 75% of the mortgage the interest rate would be reduced (not below current market rates) and principal amortization would be deferred (not beyond the original mortgage term) so that PITI would be no more than 30% of adjusted income. If the value of the home is less than 75% of the debt the principal amount of the debt would be reduced so that the home value is not less than 75% of the reduced mortgage. The reduction of debt would be further limited so as not to increase the homeowners adjusted net worth in excess of 25% of the reduced mortgage. The interest rate reduction and deferral of principal amortization discussed above would also apply to the reduced mortgage so PITI is no more than 30% of adjusted income. In situations where a mortgage cannot be modified as discussed above because 30% of adjusted income cannot support payments on a modify mortgage, the program would allow for a short sale with the borrower no longer liable for all or part of the remaining loan balance.  Most important, this program would allow the borrower to immediately reduce PITI payments to no more than 30% of adjusted income until the debt restructuring is completed thereby discouraging lender procrastination. The establishment of the program itself may make lenders more willing to work with homeowners outside the program.

This program would not create a windfall for the borrower. Borrowers with substantial income or substantial net worth will still be expected to honor their loan obligations or pursue existing alternatives. However, I suspect such legislation would not be popular with lenders, parties who provided guaranties related to securitized debt, Freddie Mac and Fannie Mae. But like the pig in the python, it is time for our economy to digest the underwater mortgage problem.

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Paragon Financial Limited, via Market Watch

The Paragon Report Provides Equity Research on PMI Group & Radian Group

NEW YORK, NY, Oct 25, 2011 (MARKETWIRE via COMTEX) — Mortgage Insurers continue to struggle as the aftermath of the recession and economic slowdown weighs on their recovery. Matthew Howlett, an analyst at Macquarie Group Ltd, argues that Mortgage Insurers probably won’t "be able to handle a sustained increase in delinquencies" that would come with another recession. The Paragon Report examines investing opportunities in the Property & Casualty Insurance Industry and provides equity research on PMI Group, Inc. PMI -14.58% and Radian Group, Inc. RDN -3.34% . Access to the full company reports can be found at:

Last month a report released by the Office of the Comptroller of the Currency revealed that the number of homeowners behind on their mortgages rose during the second quarter of 2011. Early-stage delinquencies, which count mortgages that are between 30 and 59 days delinquent, increased 0.4 percent in the second quarter, the report said. More serious delinquencies — mortgages that are 60 or more days delinquent — and delinquent mortgages to bankrupt borrowers also increased slightly in the second quarter after falling for the previous five quarters.

The Paragon Report provides investors with an excellent first step in their due diligence by providing daily trading ideas, and consolidating the public information available on them. For more investment research on the Property & Casualty Insurance industry register with us free at and get exclusive access to our numerous stock reports and industry newsletters.

High delinquency rates have plagued Mortgage Insurers. PMI Group said on Saturday that the main subsidiary of the company has been seized by Arizona insurance regulators, and will begin paying only 50 percent of claims. Under a court order obtained by Arizona regulators, "the Arizona Department of Insurance now has full possession, management and control of PMI," the company said in a brief statement.

The seizure of Arizona-based PMI Mortgage Insurance Co comes two months after two PMI units were ordered to stop writing new business due to their failure to meet capital requirements.

The Paragon Report has not been compensated by any of the above-mentioned publicly traded companies. Paragon Report is compensated by other third party organizations for advertising services. We act as an independent research portal and are aware that all investment entails inherent risks. Please view the full disclaimer at

SOURCE: Paragon Financial Limited

Copyright 2011 Marketwire, Inc., All rights reserved.

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Paul Gores, Journal Sentinel

Although the private mortgage insurance industry continues to lose money amid the lingering foreclosure crisis, Milwaukee’s MGIC Investment Corp. is in far better condition than a competitor that was seized by regulators last week, analysts said Monday.

Claims on mortgage defaults had sapped capital at Arizona-based PMI Mortgage Insurance Co. to the point that regulators in that state took control of the company and ordered it to pay claims at only 50 cents on the dollar.

Mortgage insurers pay lenders part of their costs when borrowers default.

MGIC, which has not had a profitable year since 2006 and last Friday reported a third-quarter loss of $165.2 million, nonetheless is prepared to handle losses, analysts said.

"MGIC is clearly in a better position than PMI was," said Thane Bublitz, a financial industry analyst for Thrivent Asset Management in Appleton.

MGIC raised about $1 billion in new capital in 2010, and the parent company intends to contribute $200 million to its insurance operations. Company investor relations spokesman Michael Zimmerman said Monday that even under a more stressful scenario, MGIC would expect to have resources to be able to pay its mortgage insurance policy obligations.

In addition, the company has – and is seeking an extension of – waivers to ease capital requirements needed to write new business if its risk-to-capital ratio would no longer meet normal standards. MGIC also has in place a subsidiary which, if needed, could issue new policies while the current one handles policies already in its portfolio.

PMI had been under regulatory scrutiny as its capital fell, and was ordered by regulators in August to stop selling new policies.

Jim Ryan, an analyst with Morningstar Inc. in Chicago, said MGIC is "certainly nowhere near as bad off as PMI was even three months ago."

As competitors are restricted from issuing new mortgage insurance, a stronger company such as MGIC could benefit, Ryan said. New policies are desirable because they provide new revenue and, under today’s restrictions, are less risky than those from the mid-2000s that continue to go into default.

"These are all things that work in their favor," Ryan said.

Still, how MGIC fares in the long run depends on the duration of the downturn in housing, analysts said. MGIC doesn’t appear to need additional capital at the moment, but could down the road, they said.

"If the housing market doesn’t stabilize and start improving, then that’s when they may get into trouble," Bublitz said.

He noted, however, that "fundamental trends" have been improving for MGIC.

While Ryan stressed that MGIC isn’t in the same boat as PMI, he said the housing market remains in a malaise – something MGIC can’t control. He said "it’s possible, but it’s not inevitable" that MGIC would need to raise additional capital.




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John Walsh, via Mortgage Professional

The mortgage industry has dealt with sweeping changes over the past few years significantly impacting the mortgage broker and wholesale lending. As a result, the wholesale origination model has been largely redefined. Although many brokers and lenders have left the business, the wholesale channel now has a well-defined regulatory framework with higher-quality and better-skilled mortgage professionals to advise borrowers on their most important financial decision. This is why I believe the mortgage broker will thrive in the coming years.

I see a compelling future for wholesale lending, one that plays a vital role and guarantees that borrowers have access to the most competitive rates and an array of responsible program options. In the absence of wholesale, there is no doubt that consumer choice would be significantly reduced, as the mortgage marketplace would be dominated by a handful of large national lenders. The mortgage broker-to-consumer option helps guarantee healthy competition in the marketplace.
Additionally, mortgage brokers provide borrowers with access to a mortgage professional who will act as their partner, trusted advisor and advocate throughout the lending process. Mortgage brokers are knowledgeable about multiple products from various lenders and can help borrowers navigate the myriad of options to find the loan that is best suited to their needs.

Wholesale lending plays a critical role in ensuring that the mortgage industry does not become too heavily reliant on a select few large lenders, so that borrowers will continue to have plenty of mortgage options for any purchase or refinance transaction. In the coming years, mortgage brokers and lenders need to be committed to ethical behavior, responsible lending, ongoing training and the highest levels of customer service. Together, we must continue to improve, practice responsible lending, and advocate for this important channel and solution for borrowers.


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Donal Griffin, via Bloomberg

U.S. regulators’ plan to expand aid to underwater mortgage borrowers may leave consumers with more spending money and boost the economy, said Wells Fargo & Co. (WFC) Chief Executive Officer John Stumpf.

“This could be really helpful,” Stumpf said today at a press club lunch in Atlanta. It may put “more money in people’s pockets. They’ll go out and spend, and get this economy going again.” San Francisco-based Wells Fargo is the nation’s biggest home lender.

Regulators will let qualified borrowers refinance mortgages regardless of how much their houses have dropped in value as the government expands relief efforts for homeowners. The Federal Housing Finance Agency will also enhance the Home Affordable Refinance Program by eliminating or reducing some fees and waiving some risk for lenders, Edward J. DeMarco, the agency’s acting director, said today.

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Obama, in first leg of three-day Western trip, offers mortgage relief in struggling Nevada.

Jim Kuhnhenn, via Associated Press

LAS VEGAS (AP) — President Barack Obama offered mortgage relief on Monday to hundreds of thousands of Americans, his latest attempt to ease the economic and political fallout of a housing crisis that has bedeviled him as he seeks a second term.

"I’m here to say that we can’t wait for an increasingly dysfunctional Congress to do its job," the president declared outside a family home in Las Vegas, the epicenter of foreclosures and joblessness. "Where they won’t act, I will."

Making a case for his policies and a new effort to circumvent roadblocks put up by Republican lawmakers, Obama also laid out a theme for his re-election, saying that there’s "no excuse for all the games and the gridlock that we’ve been seeing in Washington."

"People out here don’t have a lot of time or a lot of patience for some of that nonsense that’s been going on in Washington," he said.

The new rules for federally guaranteed loans represent a recognition that measures the administration has taken so far on housing have not worked as well as expected.

His jobs bill struggling in Congress, Obama tried a new catchphrase — "We can’t wait" — to highlight his administrative initiatives and to shift blame to congressional Republicans for lack of action to boost employment and stimulate an economic recovery.

Later in the week, Obama plans to announce measures to make it easier for college graduates to pay back federal loans. Such executive action allows Obama to address economic ills and other domestic challenges in spite of Republican opposition to most of his proposals.

While Obama has proposed prodding the economy with payroll tax cuts and increased spending on public works and aid to states, he has yet to offer a wholesale overhaul of the nation’s housing programs. Economists point to the burst housing bubble as the main culprit behind the 2008 financial crisis. Meanwhile, the combination of unemployment, depressed wages and mortgages that exceed house values has continued to put a strain on the economy.

While the White House tried to avoid predicting how many homeowners would benefit from the revamped refinancing program, the Federal Housing Finance Agency estimated an additional 1 million people would qualify. Moody’s Analytics say the figure could be as high as 1.6 million.

Under Obama’s proposal, homeowners who are still current on their mortgages would be able to refinance no matter how much their home value has dropped below what they still owe.

"Now, over the past two years, we’ve already taken some steps to help folks refinance their mortgages," Obama said, listing a series of measures. "But we can do more."

At the same time, Obama acknowledged that his latest proposal will not do all that’s not needed to get the housing market back on its feet. "Given the magnitude of the housing bubble, and the huge inventory of unsold homes in places like Nevada, it will take time to solve these challenges," he said.

In spelling out the plan to homeowners in a diverse, working-class Las Vegas neighborhood, Obama chose a state that provides the starkest example of the toll the housing crisis has exacted from Americans. One in every 118 homes in the state of Nevada received a foreclosure notice in September, the highest ratio in the country, according to the foreclosure listing firm RealtyTrac.

Obama visited the home of Jose and Lissette Bonilla, two grocery store workers whose house was refurbished under a program paid for by the original 2009 economic stimulus plan. The program was designed to stabilize communities hit by foreclosures or abandonment. Lissette Bonilla said she told the president that without his stimulus plan, the five members of her family would still be living in a one-bedroom apartment.

Presidential spokesman Jay Carney criticized Republican presidential candidate Mitt Romney for proposing last week while in Las Vegas that the government not interfere with foreclosures. "Don’t try to stop the foreclosure process," Romney told the Las Vegas Review-Journal. "Let it run its course and hit the bottom."

"That is not a solution," Carney told reporters on Air Force One. He said Romney would tell homeowners, "`You’re on your own, tough luck.’"

The president also was using his visit to Las Vegas to promote a $15 billion neighborhood revitalization plan contained in his current jobs proposal that would help redevelop abandoned and foreclosed properties and stabilize affected neighborhoods.

The Nevada stop was the first leg of a three-day tour of Western states, blending his pitch for boosting the economy with an aggressive hunt for campaign cash.

From Nevada, Obama will head for the glamor of Hollywood and the homes of movie stars Melanie Griffith and Antonio Banderas and producer James Lassiter for some high-dollar fundraising. On Tuesday, he will tape an appearance on "The Tonight Show" with Jay Leno. He will also raise money in San Francisco and in Denver.

Before the president addressed his mortgage refinancing plan, he attended a fundraiser at the luxurious Bellagio hotel, offering a sharp contrast between well-to-do who are fueling his campaign and the struggling homeowners hoping to benefit from his policies.

The mortgage assistance plan by the Federal Housing Finance Agency will help borrowers with little or no equity in their homes, many of whom are stuck with 6 or 7 percent mortgage rates, to seek refinancing and take advantage of lower rates. The FHFA plans to remove caps that had allowed homeowners to refinance only if they owed up to 25 percent more than their homes are worth.

The refinancing program is being extended until the end of 2013. It was originally scheduled to end in June 2012.

The administration’s incremental steps to help homeowners have prompted even the president’s allies to demand more aggressive action.

Rep. Dennis Cardoza, a moderate Democrat from California, gave voice to Democratic frustration on the housing front last week when he announced his decision not to seek re-election, blaming the Obama administration directly for not addressing the crisis.

"I am dismayed by the administration’s failure to understand and effectively address the current housing foreclosure crisis," Cardoza said in a statement that drew widespread attention. "Home foreclosures are destroying communities and crushing our economy, and the administration’s inaction is infuriating."

Obama’s new "We can’t wait" slogan is his latest in a string of stump-speech refrains he hopes will pressure Republicans who oppose his $447 billion jobs package. He initially exhorted Congress to "Pass this bill!" then demanded "I want it back," all in the face of unanimous Republican opposition in the Senate, though even some Democrats were unhappy with the plan.

Obama has now agreed to break the proposal into its component parts and seek congressional approval one measure at a time. The overall proposal would increase taxes on millionaires, lower payroll taxes on workers and businesses for a year, pay for bridge, road and school construction projects, and help states and local governments retain teachers and emergency workers.

The proposals with the best chance of passage are the payroll tax cuts and extensions in jobless insurance to the long-term unemployed.

Countering Obama’s criticism, GOP leaders say the sluggish economy and stubbornly high unemployment rate are the result of failed Obama administration policies.

"It’s another day in the campaign life of President Obama, and he’s bringing his re-election tour to Nevada, ground zero for the damaging effects of his failed economic policies," Republican National Committee Chairman Reince Priebus said Monday.

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After a hitting a three year low earlier in 2011, the Federal Housing Administration delinquency rate jumped more than a full percentage point in the second quarter, according to analysis from investment bank Keefe, Bruyette & Woods.

The Mortgage Bankers Association reported delinquency rates on all outstanding mortgages ticked up 12 basis points in the second quarter to 8.44%. KBW analysts said resurging FHA delinquencies drove the increase as its larger book of business began to season.

"We believe that an increase in delinquencies in the FHA program was the biggest contributor to the pickup in overall national delinquencies in the second quarter," KBW said.

From the start of 2009 to the end 2010 the amount of loans, current or delinquent, in the FHA servicing portfolio increased from 3.8 million to nearly 5.7 million as the frozen mortgage market depended upon it, Fannie Mae and Freddie Mac to finance and guaranty 95% of the market.

At the same time, delinquencies began to fade. The percentage of past-due loans declined from a high of 14.5% in the third quarter of 2009 to a low of 10.6% in the first quarter of 2011, still 60 bps above the low in the first quarter in 2007.

"While this could partially reflect an improving book of business, we believe that much of it reflected the sharp growth in new loans," KBW said.

But in the second quarter, the delinquency rate jumped to 11.7%. Seasonally adjusted, the increase was 59 bps to 12.62%.

Mirroring the MBA report, the FHA second-quarter delinquencies increased the most in the early stages of default, according to KBW. For instance, 30-day delinquencies increased 87 bps to 5.27% in the second quarter, while those in 90-day delinquency dropped 5 bps to 4.55%. Seriously delinquent loans, those in 90-plus day delinquency or foreclosure dropped 13 bps to 7.65%.

"FHA delinquency rates fell in 2010 as the FHA loans outstanding grew very sharply. We believe that the moderation in FHA loan growth will likely result in further increases in delinquencies on this portfolio which will likely push up the national averages," KBW analysts said. "However, this credit risk resides with the government since these loans are guaranteed by FHA."

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The Real Estate Bloggers

The housing market may be getting a little tighter in a couple of months. The bureaucrats working on enacting some of the provisions of the Dodd-Frank reforms have interpreted the loosely written laws to require homes that qualify for the best interest rates to have a minimum of a 20 percent down payment.

That sound you just heard is agents across the country gulping in panic.

The homes that have a 20 percent down payment will get the best interest rates, those buyers that do not have 20 percent to put down will be held to a much higher standard for approval and face higher interest rates.

The fact that the real estate industry is still muddling along with historically low interest rates, high inventories, and significantly lower prices is bad enough news for the millions of agents out there. Now adding the prospective of tougher loan approvals and the reduction of potential buyers the real estate industry has another hurdle to cross.

Some Dodd-Frank reforms are already in place, but Congress left details of others to regulators. The down payment rule is currently in a “public comment” period that’s been extended to Aug. 1.

The proposal would split home loans into two categories. One would be loans to buyers who put 20 percent down, and lenders would face few regulatory hurdles bundling those loans to sell as investment securities. It was the volume of subprime loans in such securities that helped precipitate the financial crisis.

The other loan category would allow smaller down payments but would require lenders to maintain at least 5 percent of the total value of their loans so they shoulder part of the risk. The intent is to ensure lenders thoroughly vet borrowers.

Isakson and others believe the second category would be subject to higher interest rates and could shut lower-income buyers out of the market.

“Loan rates would go up 3 percent because of the scarcity of the loans,” said Isakson, who ran a real estate company in metro Atlanta before his days in Washington. “With the housing market in the shape it is, it’s just ridiculous.”

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The Senate Banking Committee will hold a hearing Tuesday to develop a new national mortgage servicing standard.

In January, federal regulators announced a new initiative to develop a set of servicing standards following weaknesses in the process that arose last year.

The industry immediately began pushing for a unified approach, and regulators are at work with the 50 state AGs to align new requirements, especially for servicing nonperforming loans.

Already, Congress is hearing from those who would like to be exempted from guidelines they see as too burdensome, especially for smaller institutions.

B. Dan Berger, the executive vice preside of the National Association of Credit Unions, sent a letter to Senate committee leaders Monday asking for an exemption.

"In short, credit unions have not participated in the practices that have led to discussions about the worthiness of national mortgage servicing standards and should not be unjustly punished for the shortcomings of institutions that have," Berger said. "While it is important that the bad actors who failed thousands of their borrowers are held accountable, we would oppose extending any new compliance burden stemming from national mortgage servicing standards onto good actors such as credit unions."

A review of more roughly 2,800 foreclosure files at the 14 largest mortgage servicers last year led regulators to conclude that although the issues were indeed widespread, the largest institutions showed the most signs of activities such as robo-signing, dual-track foreclosures and unnecessarily delayed modifications.

Sen. Olympia Snow (R-Maine) and Sen. Jeff Merkley (D-Ore.) introduced legislation in May that would establish federal standards for mortgage servicers, but it was attached as an amendment to another bill and has yet to make it out of committee.

Testifying before the committee Tuesday will be representatives from the Hope Now alliance of industry servicers, investors and counselors and a member of the Independent Community Bankers of America.

No one from the major mortgage servicers will be taking questions at the hearing, however.

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