Refinance Programs

Browse articles from all of our Newsletters related to Refinance Programs.

March 23, 2017 - Inside Mortgage Finance

VA Considering Stronger Measures to Stop Early Solicitation of VA Purchase Loans for Refinancing

The Department of Veterans Affairs is considering possible solutions, including new regulation or policy changes, to address the ongoing problem of aggressive refinancing of VA purchase loans. Certain lenders and mortgage brokers apparently are still soliciting VA purchase loans for streamline refinancing despite Ginnie Mae’s effort to stop the practice and help mortgage-securities investors get full return on their investments. Ginnie Mae issued...


March 17, 2017 - Inside FHA/VA Lending

HECM Originations Down in 2016, December Spike Slowed Descent

Production of Home Equity Conversion Mortgage loans was down in 2016 with an estimated $14.9 billion originated last year, compared to $16.0 billion the previous year. Year-over-year, total HECM volume fell 6.4 percent. Purchase loans accounted for 85.9 percent of FHA-insured reverse mortgages produced over the 12-month period. Originations, however, rose by 8.0 percent in the fourth quarter from the previous quarter due to a spike in HECM lending in December. Purchase HECMs with an adjustable rate appeared to be the product of choice among HECM borrowers in 2016. American Advisors Group continued to dominate the market, closing 2016 with $2.1 billion in HECM originations for a 14.0 percent market share. One Reverse Mortgage was the second top HECM producer of the year with $855 million, while Reverse Mortgage Funding was in third place with $649.8 million. Liberty Home Equity Solutions hung on ... [ 1 chart ]


March 17, 2017 - Inside FHA/VA Lending

Serial Rapid Refinancing Continues As VA, MBA Explore Potential Cures

Solicitation of VA purchase loans for streamline refinancing within weeks of closing is apparently continuing despite Ginnie Mae’s efforts to stop the harmful practice. The Mortgage Bankers Association has expressed concern that guidance on pooling eligibility for streamlined refinance loans, which Ginnie issued in October last year, was far less effective than expected. Although the aggressive refinancing trend has slowed due to Ginnie’s action, there are still “pockets of that activity” being reported, said Pete Mills, MBA senior vice president. Refinancing a veteran’s purchase mortgage less than six months after its origination is not in the vet’s best interest because it strips equity from the house and results in higher financing costs, said Mills. While the rapid refi trend involves only a small number of loans in Ginnie mortgage-backed securities pools, investors do not get the full benefit of their investment because of early prepayment. Mills said there are a handful of lenders and brokers that ...


March 10, 2017 - Inside Mortgage Trends

Older Homeowners Not Tapping Home Equity

Homeowners over the age of 65 rarely use their mortgages to access their home equity, according to a new study by the Urban Institute and Fannie Mae. Even as a large number of seniors reported concerns about finances during retirement, Fannie noted that just 6 percent of older adult homeowners are interested in tapping their home equity. Relatively few seniors use FHA reverse mortgages, closed-end seconds, home-equity lines of credit and cash-out refinances to tap built-up home equity. One reason seniors hesitate...


March 10, 2017 - Inside Mortgage Trends

Firm Targets Borrowers Who Need Cash-Out Refis

A data management and analytics firm is offering a service that can identify a lender’s existing borrowers who “need” an offer for a cash-out refinance. Altair Customer Intelligence said it offers lenders a number of ways to retain existing borrowers. While cash-out refinance activity is well below the levels seen before the financial crisis, many borrowers have built up equity in their homes in recent years, making cash-outs an option. Steve Ferrell, ?inbound marketing manager at Altair, said...


March 9, 2017 - Inside Mortgage Finance

RESPA Experts Highlight Troubling Behavior in CFPB’s Consent Orders With Prospect Mortgage

As the mortgage industry waits for a definitive resolution to the legal dispute between PHH Mortgage and the Consumer Financial Protection Bureau, industry experts tried to glean some guidance on the Real Estate Settlement Procedures Act from the bureau’s recent consent orders involving nonbank Prospect Mortgage and some of its partners. Earlier this year, the CFPB brought a $3.5 million enforcement action against Prospect, accusing the firm of illegal kickbacks for mortgage business referrals from two real estate brokers, and in an unusual twist, a mortgage servicing operation. The bureau also acted against ReMax Gold Coast and Keller Williams Mid-Willamette, the brokers, and Planet Home Lending, the mortgage servicer – all of whom it accused of taking illegal kickbacks from the lender. During a webinar this week sponsored by Inside Mortgage Finance, Rodrigo Alba, senior vice president of mortgage finance and senior regulatory counsel for the American Bankers Association, said...


March 3, 2017 - Inside FHA/VA Lending

Greater Liquidity in Ginnie MBS Led to Higher Share for Nonbanks

By creating liquidity in Ginnie Mae mortgage-backed securities, liquidity coverage ratio (LCR) policies have attracted lenders – mostly nonbanks – whose funding relies more on securitizations – toward FHA loan originations, according to a new paper published by academicians. The paper, “Nonbanks and Lending Standards in Mortgage Markets: The Spillovers from Liquidity Regulation,” maintains that such lenders approve more FHA loans because they can sell the loans easily, given the high liquidity of the securitized product. The greater liquidity in Ginnie MBS has resulted in higher market share and eased standards especially for nonbanks and lenders with less deposit funding. It also has led to tighter standards for conventional mortgages, which are eligible for government sponsored enterprise securitization, wrote Pedro Gete and Michael Reher, researchers in the ...


March 3, 2017 - Inside FHA/VA Lending

GNMA Issuance Tumbles in 1Q17 Following 2016’s Stellar Volume

Ginnie Mae production fell substantially in February from January as the government-insured lending market continued to lose steam in the first quarter of 2017. Ginnie mortgage-backed securities issuance fell 24.0 percent from January as fewer purchase and refinance loans were pooled for securitization, bringing February’s total issuance to just $32.2 billion. Year-over-year Ginnie MBS issuance, on the other hand, increased by 6.2 percent. The government-insured market set an all-time record of $545.0 billion in originations during 2016, a whopping 31.0 percent jump from the previous year. That total eclipsed previous records for originations of FHA, VA and rural housing loans guaranteed by the U.S. Department of Agriculture, according to data compiled by affiliate Inside Mortgage Finance. In addition, government-insured lending accounted for a record ... [ 3 charts ]


March 2, 2017 - Inside Mortgage Finance

2016 Was a Big Year for Purchase-Mortgage Lending, But the Refinance Market Was Booming as Well

Purchase-mortgage originations in 2016 hit their highest level since before the housing market crash, including a solid uptick in first-time buyer activity, according to a new Inside Mortgage Finance ranking and analysis. Revised estimates show a total of $1.021 trillion of home-purchase mortgages were originated in 2016, a 10.5 percent increase from the previous year. It marked the biggest volume of purchase-money lending since 2006 even though the purchase share of new originations declined. That’s...[Includes five data tables]


February 17, 2017 - Inside FHA/VA Lending

Debt Burdens Crept Slightly Higher In 2016 for FHA and VA Borrowers

FHA and VA borrowers took on slightly greater payment obligations in 2016 than they have in previous years, according to a new analysis and servicer ranking by Inside FHA/VA Lending. The average debt-to-income ratio for FHA loans securitized in Ginnie Mae mortgage-backed securities last year was 40.4 percent, up about half a percentage point from 2015. The average VA DTI ratio nudged up slightly to 38.3 percent. Average credit scores in the FHA program drifted slightly lower, while climbing 1.9 points for VA loans. The differences in credit quality between the two programs remained substantial: the VA attracts borrowers with higher credit scores and lower DTI ratios who take on larger loans. Some 36.3 percent of VA loans backing Ginnie MBS issued last year had credit scores of 740 and up, while just 13.2 percent of FHA loans fell in that category. Meanwhile, 67.1 percent of FHA loans had ...


Poll

With the spring homebuying season in full swing, what percentage of your March 2017 application volume has been for “purchase” loans?

75% or higher
50% to 74%
30% to 49%
Under 30%

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