Browse articles from all of our Newsletters related to Mortgage Insurance.
January 13, 2017 - Inside Mortgage Trends
Mortgages guaranteed by the Department of Veterans Affairs accounted for 29.4 percent of insured home loans securitized in the agency mortgage-backed securities market in the fourth quarter of 2016, a new Inside Mortgage Trends analysis reveals. That was up from a 27.2 percent share for the VA during the third quarter. The home-loan guaranty program has become a refinance dynamo, accounting for a whopping 44.6 percent of insured refi loans ... [Includes one data chart]
January 13, 2017 - Inside MBS & ABS
Fannie Mae and Freddie Mac last year issued a combined $12.93 billion of debt notes that pay investors based on the performance of reference pools, according to a new Inside MBS & ABS analysis of their credit-risk transfer programs. That was up just 2.8 percent from the 2015 volume of new issuance in Fannies Connecticut Avenue Securities program and Freddies Structured Agency Credit Risk program. It brought total issuance in the two platforms, which started issuance in late 2013, to $38.08 billion. Interestingly, total new single-family MBS production by the two government-sponsored enterprises was...[Includes one data table]
January 12, 2017 - Inside Mortgage Finance
Any pushback against the FHAs 25 basis-point cut in the annual mortgage insurance premium remains to be seen despite grumblings from Capitol Hill, said stakeholders and industry analysts. Earlier this week, the outgoing leadership of the Department of Housing and Urban Development surprised the industry by reducing the annual MIP for 30-year FHA mortgages by 25 bps, and eliminated the higher MIP for loans exceeding $625,500. There are...[Includes one data table]
January 12, 2017 - Inside Mortgage Finance
Lenders delivered $68.26 billion of single-family loans with private mortgage insurance coverage, including modified loans, into Fannie Mae and Freddie Mac mortgage-backed securities during the fourth quarter of 2016, according to a new Inside Mortgage Finance analysis and ranking. Fourth-quarter private MI activity for the two government-sponsored enterprises was down 10.1 percent from the previous quarter. Overall, Fannie/Freddie single-family MBS production was up 5.7 percent in the fourth quarter. The drop in MI-insured business at the two GSEs tracked...[Includes two data tables]
January 6, 2017 - Inside FHA/VA Lending
VA Extends Making Home Affordable Program. The Department of Veterans Affairs has extended the Making Home Affordable program to Oct. 1, 2017. The program was set to expire on Jan. 1, 2017. USDA Approves NewFed Mortgage to originate Section 52 Guaranteed Rural Housing Loans. The U.S. Department of Agriculture has approved NewFed Mortgage Corp., a multi-state residential mortgage lender, to originate USDA loans. Based in Danvers, MA, retailer NewFed offers FHA, VA, USDA, conventional and jumbo mortgage products. Reviews Genworth Financials Proposed Sale to Chinese Conglomerate. Fannie Mae has approved Arch Capitals acquisition of ...
January 6, 2017 - Inside FHA/VA Lending
Industry stakeholders are anticipating an FHA insurance premium reduction soon from the Department of Housing and Urban Development. Sources say a 25-basis-point premium reduction is in the works and HUD Secretary Julian Castro may announce it during his farewell address. His last day in office is Jan. 20, President-elect Donald Trumps inauguration day. A HUD representative declined to comment on the report citing department policy against commenting on rumors. A number of lobbyists and consultants said they have heard similar reports but cautioned it is not a done deal. Two industry executives expressed certainty about the veracity of the report. The idea of a premium cut has been raised with neurosurgeon Dr. Ben Carson, Trumps nominee for HUD secretary, who will have his Senate confirmation hearing on Jan. 12. A mortgage insurance premium reduction at this time would ...
January 6, 2017 - Inside MBS & ABS
The only word from the incoming Trump administration about the fate of Fannie Mae and Freddie Mac is that the prospective Treasury secretary wants to bring them out of conservatorship. The Obama administration, however, commits only to preserving an explicit government guarantee for a defined class of MBS. The explicit government guarantee would be funded by financial institutions and would act as insurance against catastrophic losses, said the Treasury in a late December blog posting by Jane Dokko, deputy assistant secretary for financial economics, and Sam Valverde, a counselor in the Office of Domestic Finance. However, the authors dont elaborate on what would shape the defined class. Under the new guarantee, investors would be assured...
January 5, 2017 - Inside Mortgage Finance
American International Group has announced the completion of the sale of its private mortgage insurance subsidiary United Guaranty Corp. (UGC) to Arch Capital Group Ltd. (ACGL), creating what could be the largest private mortgage insurance company in the world. On paper, the combined entity would account for 26.9 percent of the market, based on traditional flow business during the first nine months of last year. But lenders are expected to re-calibrate how they distribute their MI business and not all current UGC business will go to the merged unit. In fact, UGC saw...
December 23, 2016 - Inside Mortgage Trends
Mortgage insurance stocks have been rallying the past month, climbing to 52-week highs, thanks in part to the Trump rally and the belief that Fannie Mae and Freddie Mac have a future after all. Six short months ago, the sector was in the tank with investors fearing that another cut in FHA premiums would erode their market share. The premium cut didnt happen, and theres a growing belief that the incoming Trump administration will favor the private sector and not the FHA taking on more risk ...
December 16, 2016 - Inside FHA/VA Lending
The flow of rural housing loans into Ginnie Mae securities saw a significant spike in the third quarter of 2016, thanks to increased market activity. Approximately $13.7 billion in USDA loans were delivered into Ginnie Mae single-family pools over a nine-month period, punctuated by a 32.1 percent surge in volume in the third quarter. Production was up a mere 1.2 percent year over year. Top USDA issuer Chase Home Finance accounted for $3.4 billion of securitized rural housing loans while in distant second place, PennyMac closed the quarter with $1.4 billion. Wells Fargo ($951.3 million), Freedom Mortgage ($876.6 million), and Pacific Union ($394.4 million), in sequential order, comprised the rest of the top five USDA issuers. Freedom Mortgage saw its volume increase tenfold both on a quarter-to-quarter and year-over-year ... [Chart]
December 15, 2016 - Inside Mortgage Finance
Legislation introduced in the last weeks of the 114th Congress would push Fannie Mae and Freddie Mac deeper into the risk-sharing pool, including forcing them into a front-end structure they have so far resisted. The Taxpayer Protections and Market Access for Mortgage Finance Act of 2016 would require the Federal Housing Finance Agency to push the two government-sponsored enterprises to transfer at least 400 basis points of their total risk. While its not clear how the legislation intends this to be measured, it appears...
December 9, 2016 - Inside The GSEs
House Financial Services Committee members Rep Ed Royce, R-CA, and Rep. Gwen Moore, D-WI, introduced a bill this week to make it mandatory for the GSEs to increase credit risk transfers with the private sector. It includes provisions regarding deep coverage mortgage insurance. The Taxpayer Protections and Market Access for Mortgage Finance Act (H.R. 6487) is a way for Congress to encourage Fannie Mae and Freddie Mac to increase the amount and the types of credit risk transfer transactions to the maximum level that is economically and commercially viable, said Royce.
December 8, 2016 - Inside Mortgage Finance
Two weeks back, United Wholesale Mortgage removed a 25 basis point charge it levied on conventional conforming loans when the borrower opts to manage his or her own real estate taxes and homeowners insurance. (Those payment chores are usually handled by the servicer.) Since making the change, escrow waivers have jumped 12 percent at the nations largest wholesaler/broker lender. Company CEO Mat Ishbia declared that other lenders should follow suit if they havent already. I think that overall this is good for the industry as a whole, he said in an interview. For now, the reaction to UWMs fee waiver has been...
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