VA Activity

Browse articles from all of our Newsletters related to VA Activity.

August 12, 2016 - Inside FHA/VA Lending

VA Issues Funding-Fee Guidance For Loans to Vets, Reservists, NGs

The Department of Veterans Affairs has issued new guidance to clarify the loan-fee structure for VA purchase and refinance mortgages, loan assumptions and manufactured home loans. The detailed funding fees are in effect for VA loans closed on or after Nov. 22, 2011, and before Sept. 30, 2024. For first-time use of the VA housing benefit, a VA loan with a downpayment of less than 5 percent would have a funding fee of 2.15 percent for veterans and 2.40 percent for reservists ...


August 12, 2016 - Inside FHA/VA Lending

VA Home Loan Guaranty Volume Up 30% in 2Q16 on Refinance Boom

Mortgage lenders originated $48.26 billion of single-family mortgages with VA home loan guaranties during the second quarter of 2016, according to agency data provided this week to Inside FHA/VA Lending. Second-quarter volume was up 30.0 percent from the first three months of the year, with the biggest increase coming in streamlined refinancing. The VA said originations of interest rate reduction loans totaled $16.50 billion in the second quarter, up 51.6 percent ...


July 29, 2016 - Inside FHA/VA Lending

VA Further Clarifies Guidance on TRID, Other Policy Handbook Items

We pick up where we left off last issue with the Department of Veterans Affairs attempting to clarify certain guidance in the VA Lender Handbook. ? If the TRID (Truth in Lending/Real Estate Settlement Procedures Act Integrated Disclosures) closing disclosures change after the veteran signs [the form], should the lender require the veteran to sign it again? VA: The short answer is yes. The lender is required to provide the TRID closing disclosure no later than three business days before consummation. The lender is required to provide a corrected closing disclosure to the borrower three days before consummation or closing in certain instances, and at or before consummation if other types of changes occur, such as adjustment of costs or credits. Therefore, any changes made that require an amended disclosure must have the borrower’s signature. ? Is the Amendatory Clause mandatory for all ...


July 29, 2016 - Inside FHA/VA Lending

FHA Bursts over $1 Trillion in June As New Issuance Exceeds Runoff

Despite quickening refinance activity, the FHA single-family market soared over the $1 trillion mark in loans pooled in Ginnie Mae mortgage-backed securities during the second quarter of 2016, according to a new Inside FHA/VA Lending analysis. A record $1.001 trillion of FHA single-family loans made up the lion’s share of collateral backing Ginnie MBS as of the end of June. That was a 1.3 percent increase from the previous quarter and a 5.5 percent gain from the midway point in 2015. Steady growth in FHA loans helped push Ginnie single-family MBS to $1.576 trillion outstanding, topping Freddie Mac for second place in the agency market. The VA loan guaranty program was still the fastest-growing corner of the government-insured market, with total VA loans in Ginnie pools up 3.8 percent from March and 16.7 percent higher than a year ago. The actual amount of FHA and VA loans outstanding is somewhat ... [ 4 charts ]


July 21, 2016 - Inside Mortgage Finance

Realtors Say FHA Loans and GSE Low-Downpayment Programs Seen as Readily Available for Homebuyers

While some banks have reduced their FHA lending in recent years and alternatives from the government-sponsored enterprises are still gaining traction, homebuyers still have access to low-downpayment mortgage programs, according to the latest Campbell/Inside Mortgage Finance HousingPulse Tracking Survey. “Most real estate agents say high loan-to-value ratio mortgages are readily available, especially for homebuyers with good credit,” said Tom Popik, research director for Campbell Surveys. The HousingPulse survey covering activity in June included...


July 15, 2016 - Inside FHA/VA Lending

VA Discusses Steps in Challenging, Resolving Adverse Audit Findin

The Department of Veterans Affairs has spelled out steps for disputing and resolving audit findings with the agency. The VA Home Loan Guaranty program has a policy-resolution protocol in place to increase both consistency among the VA regional loan centers (RLC) and responsiveness to lender inquiries. In seeking to resolve an audit dispute with an RLC, the lender should first consult the VA Lender’s Handbook before contacting the VA. Lenders also are encouraged to check with colleagues who might be familiar with issues underlying the dispute. The lender should contact the RLC with jurisdiction for an official response to case-specific questions. When disputing an audit finding or a deficiency letter, the lender should contact the loan specialist who conducted the audit. If, after communicating with the loan specialist, the dispute remains unresolved, the lender should take its concern to ...


July 15, 2016 - Inside FHA/VA Lending

VA Breaks Down, Explains NPS, Timely Payments, Handbook Issues

The Department of Veterans Affairs has clarified policies that have raised questions among VA lenders but were not addressed during the agency’s annual lender conference in San Diego, CA, back in May. ? What is the VA’s policy regarding a non-purchasing spouse’s (NPS) credit? VA: The NPS’s liabilities need to be considered but not its credit history. ? What is VA’s policy regarding a loss that an NPS reports on a joint tax return? If a joint tax return shows a business loss, then that loss will have to be deducted from the veteran’s income in both community and non-community property states. What is reported to the Internal Revenue Service must be used when applying for a federally guaranteed loan In a situation where a couple has been faced with business losses, the veteran and his or her spouse may want to consider both being on the loan in order to potentially qualify. ? The VA Pamphlet states: “Account balances reduced to ...


July 15, 2016 - Inside FHA/VA Lending

Ginnie Mae Production Up Sharply Across the Board in Second Quarter

Ginnie Mae issuers produced a hefty $125.42 billion of new single-family mortgage-backed securities during the second quarter of 2016, according to a new Inside FHA/VA Lending analysis of MBS data. The government-insured market continued to run hotter than the Fannie Mae and Freddie Mac sector. Ginnie MBS issuance – including FHA’s home-equity conversion mortgage program – was up 31.1 percent from the first quarter, while single-family MBS issuance by the two government-sponsored enterprises rose 26.2 percent over the same period. Excluding HECM, Ginnie issuance was up 31.5 percent in the second quarter. While FHA forward mortgages continued to be the biggest source of collateral, the VA program actually produced a bigger gain, 42.4 percent, from the first to the second quarter. VA production saw a major boost in refinance activity, up 58.4 ... [Includes four charts ]


Poll

The yield on the benchmark 10-year Treasury fell to all-time low of 1.34% recently. How much better will originations be at your shop in the second half compared to 1H, if at all?

Better by 1% to 10%.

30%

Better by 11% to 25%.

39%

Off the charts better. Applications are great now.

22%

Worse than 1H, but not by much.

4%

A lot worse. But not sure on the damage.

4%

Housing Pulse