Volume 2013 - Number 47
December 12, 2013
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The Federal Housing Finance Agency this week announced it would direct Fannie Mae and Freddie Mac to implement a three-pronged adjustment in guaranty fee the two government-sponsored enterprises charge lenders, including a 10 basis point g-fee hike beginning in March. The increases which would boost the average guaranty fee for new loans to over 60 bps are part of the FHFAs strategic plan for Fannie and Freddie to attract more private capital to the mortgage market and improve the relationship between g-fee and risk, according to FHFA Acting Director Edward DeMarco. As part of the plan, Fannie and Freddie will drop...
Purchase-mortgage originations continued to grow during the third quarter of 2013, with a significant share of the loans coming from loan correspondents, according to a new ranking and analysis by Inside Mortgage Finance. Lenders generated an estimated $218.0 billion in purchase mortgages during the third quarter, the highest three-month volume since the third quarter of 2007. That was up 17.2 percent from the second quarter and it brought year-to-date production to $583.0 billion, up 30.4 percent from the same period in 2012. Refinance production continued...[Includes four data charts]
It wasnt much of a surprise when the Department of Housing and Urban Development announced FHA loan limits for 2014 that lowered the top high-cost market limit, but many were caught off guard by the change in how limits are calculated and by revised median house prices. HUD this week announced that the cap for single-family mortgages in the most expensive housing markets of the lower 48 states would drop from $729,750 to $625,500. Thats the same as the maximum high-cost limit for Fannie Mae and Freddie Mac. During the first half of 2013, only about $2.05 billion of FHA loans exceeded $625,500, or about 1.5 percent of FHA business. But the sunset of the FHA provisions in the Economic Stimulus Act of 2008 also meant...
Warehouse commitments extended to nonbanks fell 16 percent on a sequential basis in the third quarter to roughly $20.5 billion, according to new figures compiled by Inside Mortgage Finance. Compared to the same period a year earlier, commitments tumbled even more: 20 percent. The drop in commitments mirrored, somewhat, the fall-off in residential originations, which declined almost 19 percent in the third quarter. However, commitments measure how much credit a warehouse lender is willing to provide not how much it actually provides. Wells Fargo, the nations largest warehouse lender, had...[Includes one data chart]
In the third quarter of 2013, the level of home-mortgage debt outstanding grew for the first time since early 2008 as the housing industry continued to climb out of the crater. The Federal Reserve this week announced there was $9.864 trillion of single-family mortgages outstanding at the end of September, a tiny 0.1 percent increase from the previous quarter. But after four and half years of decline, the gain seemed monumental. The central bank noted that all the increase was in first mortgages, while the supply of home-equity loans outstanding continued to shrink. Servicing attached to Ginnie Mae, Fannie Mae and Freddie Mac programs continued...[Includes one data chart]
The Consumer Financial Protection Bureau may formally address the treatment of affiliate fees in the points-and-fees calculation for qualified mortgages under the agencys ability-to-repay rule, which takes effect in just a few weeks. Until such a decision is made, industry representatives have put together some guidance on how to exclude such fees from that 3 percent cap. There has been significant industry confusion concerning the extent to which affiliate fees are included in the points-and-fees calculation, particularly when only a portion of a fee is retained by an affiliate, the Mortgage Bankers Association said early this week. The trade group has put together a document outlining its understanding of the CFPBs definitive guidance, based on discussions with bureau staff, on the treatment of affiliate fees in both the qualified mortgage and the Home Ownership and Equity Protection Act points-and-fees calculations. Please keep in mind...
Recent progress reports on the $25 billion national servicing settlement and the Home Affordable Modification Program suggest that servicers are complying with the vast majority of the programs requirements. However, regulators continue to push for better performance. The five banks participating in the national servicing settlement complied with the settlements 29 metrics as of the end of the second quarter of 2013, according to a report released last week by the settlements monitor. JPMorgan Chase was...
The Department of Housing and Urban Development this week issued a final rule implementing a qualified-mortgage standard for FHA loans that is essentially unchanged from the agencys first proposal issued in late September. HUD determined that it had to tweak the calculation of points and fees that is in the Consumer Financial Protection Bureaus QM rule so that a large number about 19 percent of FHA forward mortgages will be classified as QMs. The final HUD rule establishes two categories of FHA qualified mortgages: safe-harbor QMs and rebuttable-presumption QMs. FHA forward mortgages will be considered...
Weekly mortgage rates and application survey data as well as indexes for ARMs.
- GSE Seller Profile: 3Q13
- GSE Repurchase Activity First Half 2013
- Top Mortgage Players: 2Q13
- Mortgage Profitability Report: 2Q13
- GSE Market Profile: FY12
- GSE Private Mortgage Insurance Profile
Most Popular Stories
- Nationstar Selling a Portion of MSR Fee, May Buy Another $200 Billion
- HUD Continues to Push Congress on Forced Transfers of MSRs
- Lenders Hit With Another GSE Surprise: Higher LLPAs for Certain FICOs
- Despite Quarterly Drops, VA Looking at a Record Year for 2013
- Industry May Try to Roll Back New LLPAs From Fannie and Freddie