Republic meets before judge with FDIC: The FDIC was supposed to bring an action against Republic Bank before an administrative judge. The hearing was scheduled for April 18th in Louisville. The FDIC is pursuing an argument that Republic’s refund anticipation loans undermine the safety and soundness of the bank. Republic will likely counter with data that shows how their RALs performed during this tax season.

The market seems to have decided that the FDIC won’t succeed. Republic’s stock is still at $20 a share. Unless investors are willing to grant a very high multiple to their shares, the price would seem to assume that RAL earnings are going to be available next year. Jackson Hewitt shares are floating at 60 cents.

Continental Prison Systems rolls on: Continental Prison System reached an agreement to put their EZ Card Kiosk in to Riker’s Island in New York City. The New York Post had reported that such a deal was under a discussion. A long time – 18 months – had passed since then and so this is a bit of a surprise. Now it is finally a reality. It also seems that CPSZ will get into the bail bonds business.

PMI Companies Disdainful of Qualified Residential Mortgage Rules: Kevin Schneider, CEO of Genworth and President of the trade group Mortgage Insurance Companies of America, contested the suggestion of putting a twenty percent exemption standard into the new QRM rules. According to Schneider, that rule would mean that a family with an income of $50,000 would need to save for 11 years before they could afford to buy a home priced at the average value in the United States ($153,000).

Congress is ready to wind down the GSEs and gut their duty to create a support for the financing of affordable housing.

Rep. Jeb Hensarling (R-TX) and House Financial Services Committee Chairman Spencer Bachus (R-AL) introduced legislation (H.R. 1182)  specifically removes the GSE affordable housing goals. (more…)

The thirty-year mortgage, long a bedrock element of how Americans buy homes, could soon be a thing of the past.

Investors, Congressional leaders, and policy makers have simultaneously floated the prospect (more…)

In February, the Federal Housing Administration announced a new pricing schedule for its loans that will raise the cost of borrowing. The new prices change the upfront premium and the subsequent annual premium on all loans guaranteed by FHA.

FHA constituted 46.6 percent of all mortgage loans in 2009. In general, FHA loans (more…)

While a lot has been said about how banks are moving risk off their balance sheets and on to the Federal Housing Adminisitration, those critiques are really too broad. Yes, banks are relying on the FHA loan program, but others are not.

The FHA charges an upfront premium to borrowers when it makes a loan. The fee is currently 1 percent. There are  (more…)