Browse articles from all of our Newsletters related to Delinquency.

January 20, 2017 - Inside FHA/VA Lending

FHA/VA Default Rates Spike Up In 4Q16, Nonbanks Still Growing

Mortgage default rates appeared to spike higher in the fourth quarter of 2016, according to a new analysis and servicer ranking by Inside FHA/VA Lending. Some 5.51 percent of FHA loans in Ginnie Mae mortgage-backed securities pools were reported as 30- to 60-days past due at the end of December. That was up 80 basis points from the previous quarter and was easily the highest default rate in the past three years. FHA default rates were also up in more serious delinquency categories: loans 60- to 90-days past due and those over 90-days late. The figures are based on loan count and are not seasonally adjusted. Similar trends occurred in the VA home loan guaranty program. The 30-60 category was up 41 bps, while 90+ delinquencies jumped 19 bps. The supply of Ginnie single-family MBS outstanding continued to set new records. The total, not including multifamily and FHA home-equity conversion ... [4 charts]

January 13, 2017 - Inside MBS & ABS

Multiple ABS Sectors Expected to Turn in Stable Performances This Year, Analysts Say

With financial markets awaiting, with some uncertainty, the public policy positions of the incoming Trump administration and the new Congress, industry analysts say ABS investors can expect most sectors to turn in stable performances in 2017. “As we look back on 2016 and consider the 2017 global structured finance outlook, most markets and their credit conditions seem favorable, and in some cases, even ideal. However, 2017 has many unknowns, especially the specific policies and priorities that will be adopted by the new U.S. administration,” said analysts with S&P Global Ratings in a recent outlook report. “Some would suggest government-sponsored enterprise privatization is possible, risk retention could be revised, and an appropriate/globally consistent capital treatment for structured finance products could be approved.” Further, “For the most part, we expect...

January 13, 2017 - Inside MBS & ABS

Judge OKs BofA Settlement; SEC to Resubmit Payout Plan; Court Affirms Dismissal of Repurchase Claims

Judge William Pauley of the U.S. District Court for the Southern District of New York has approved a $335 million settlement by Bank of America with three pension funds and other investors to resolve a securities class-action against the bank. The settlement is one of the largest class-action settlements of securities-purchase claims arising from the financial crisis, according to the Pennsylvania Public School Employees’ Retirement System (PSERS), the court appointed lead plaintiff in the six-year old case. Other investors include...

January 6, 2017 - Inside FHA/VA Lending

Michigan Lender Agrees to Pay $48 Million to Resolve FCA Claims

United Shore Financial Services of Troy, MI, has agreed to pay $48 million to resolve allegations of FHA-related fraud, adding to the more than $7 billion in settlements and judgments the Department of Justice has collected since 2009. United Shore, parent company of United Wholesale Mortgage and Shore Mortgage, was accused of improperly originating mortgages and falsely certifying compliance with FHA requirements. Originated between Jan. 1, 2006, and Dec. 31, 2011, the loans eventually turned bad, resulting in significant losses to the FHA insurance fund. The complaint did not specify the number and total amount of the bad loans United Shore originated or the size of FHA’s losses on those loans. United Shore was charged with violation of the False Claims Act, becoming the latest financial institution to join a growing list of FHA lenders that have opted to settle, rather than litigate, ...

January 6, 2017 - Inside MBS & ABS

Angel Oak Gears Up for New Non-Agency MBS, While PIMCO and Citadel May Tap the Market Later in 2017

With two of the nation’s largest originators of nonprime and non-qualified mortgages hoping for a record production year in 2017, the mostly anemic securitization market for these types of credits could receive a real boost. But the big question remains: how much will the two firms – Angel Oak Mortgage Solutions and Citadel Servicing Corp. – tap the MBS market? In 2016, the Irvine, CA-based Citadel funded...

January 5, 2017 - Inside Mortgage Finance

Small Servicers Growing Much More Quickly than Larger Firms, With an Emphasis on New Production

Small servicers have significantly outpaced larger servicers in terms of growth in the past year. While many nonbanks focused on servicing nonperforming mortgages in the past, the more recent growth by small servicers has been in performing mortgages, including those originated in-house. The total unpaid principal balance of single-family mortgages outstanding at the end of the third quarter of 2016 was $10.11 trillion, up by 1.6 percent, according to the Federal Reserve. Growth was...

December 23, 2016 - Inside Mortgage Trends

Floodwaters of Negative Equity Continue to Recede

The share of all homeowners underwater on their mortgage dropped in the third quarter of 2016 and is now at a fraction of what it was at its high-water mark, according to the latest data from Zillow. The firm found that negative equity dropped to 10.9 percent in the third quarter, down from 12.1 percent in the second and 13.4 percent a year ago. Nationally, there were fewer than 5.3 million homeowners underwater on their mortgage during the third quarter, a level far removed from the peak ...

December 16, 2016 - Inside FHA/VA Lending

Housing Counseling Certification, Assumption Fee Rules Issued

Housing counselors participating in the Department of Housing and Urban Development’s various programs must be certified to offer counseling services to consumers, according to a final rule issued this week by the agency. In order to become certified, housing counselors must pass a standardized written examination and work for a HUD-approved housing counseling agency (HCA). Applicants must demonstrate proficiency in six areas of housing counseling: financial management, property maintenance, responsibilities of homeownership and tenancy, fair housing laws and requirements, housing affordability, and avoidance of mortgage delinquency, eviction and default. Despite its recent release, the final rule will take full effect three years following the announcement of the certification exam. HUD will offer intensive training and study resources in English and Spanish to ...

December 16, 2016 - Inside MBS & ABS

No Consensus Among Non-Agency Market Participants on How to Pay for a Deal Agent

In the past few years, efforts facilitated by the Treasury Department and the Structured Finance Industry Group have helped develop standards for a deal agent in non-agency MBS. The concept took a major step forward last week when SFIG published a draft deal-agent agreement. However, the agreement didn’t delve into the specifics about how a deal agent would be compensated and industry participants have a wide range of opinions on the issue. A lawyer involved with the creation of the deal agent standards said...

December 16, 2016 - Inside MBS & ABS

No Huge Changes in GSE Marching Orders for 2017, But Questions Raised About CSP Costs

Fannie Mae and Freddie Mac are expected to launch a study of mortgage servicing in 2017 and research ways to reach underserved borrower groups, but the new “scorecard” for the government-sponsored enterprises doesn’t portend big changes in their credit-risk transfer programs or the emerging common securitization platform. The most significant new initiative in the 2017 scorecard released by the Federal Housing Finance Agency this week is a new project to assess the mortgage servicing business model. The language is somewhat vague and broad-reaching: “initiate a multiyear assessment of both the challenges facing the mortgage servicing market and potential solutions for identified issues.” The new game plan specifically mentions...

December 15, 2016 - Inside Mortgage Finance

Home-Equity Lending Softened Slightly in 3Q16 As Refinancing Surged; HEL Outstanding Fell

Home-equity lending cooled off in the third quarter of 2016 as consumers took advantage of low interest rates to refinance rather than draw down more second-mortgage debt. Lenders originated an estimated $50.7 billion of home-equity loans during the third quarter, including home-equity lines of credit and closed-end second mortgages. Although that was down 5.2 percent from the second quarter, it still marked the second highest three-month volume since the housing market collapse in 2008. And depository institutions, the dominant lenders in the HEL market, reported...[Includes three data tables]


HUD has announced a 25 basis point cut in FHA premiums, which is slated to take effect in late January. Is your lending shop for or against a cut in FHA premiums?

For. It should help lending volumes.
Against. The private MI sector should take on this risk, not the government.
Too early to say.
I believe the new White House may scuttle the idea so it doesn’t matter.

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