VA Activity

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

July 24, 2015 - Inside FHA/VA Lending

MPF Drops Certain Requirements For Government Streamline Refis

The Federal Home Loan Bank’s Mortgage Partnership Finance (MPF) Program has removed certain barriers to streamline refinancing of government-backed mortgages. Effective on July 6, 2015, the MPF no longer requires minimum FICO score, maximum loan-to-value ratios or appraisals for FHA streamlined refis, VA Interest Rate Reduction Refinance loans and rural housing home loans with a U.S. Department of Agriculture guarantee. The MPF program’s participating financial institutions (PFIs) may now originate and underwrite streamline refis based solely on the requirements of the FHA, VA or the USDA’s Rural Housing Service. The program currently requires borrower and co-borrower income for government loan streamline refis for the purpose of loan presentment. “Presentment” refers to the right to require a lender to demand payment of amounts ...


July 24, 2015 - Inside FHA/VA Lending

FHLB Chicago’s MPF Program Announces First Ginnie Mae MB

The Federal Home Loan Bank Mortgage Partnership Finance program has announced its first security issuance with a Ginnie Mae guarantee. The $5 million security is backed by home loans originated by community banks and credit unions through the MPF Government MBS product. The Mortgage Bankers Association welcomed the new MBS, seeing it as another opportunity for all lenders to access the capital markets directly, reducing costs and increasing originations. “Many community banks use the FHLB MPF program to sell conventional mortgages into the secondary market,” observed Ron Haynie, senior vice president at the Independent Community Bankers of America. “This expansion in aggregating and securitizing government loans provides community banks with the opportunity to reach more borrowers, especially in rural and small-town markets, and to safely sell those loans to ...


July 24, 2015 - Inside FHA/VA Lending

Utah Lender Plans to Expand VA, FHA Segments Nationwide by 2016

FHA/VA lender Castle & Cooke Mortgage is relatively new to the government-backed market but it could soon evolve into a major player if things work out as planned. The Salt Lake City-based retail lender is in the midst of an aggressive expansion plan to be in all 50 states by the end of 2016, according to Adam Thorpe, who was named president and chief operating officer in late 2014. C&C’s government-backed lending activities are mostly in the West with licenses to operate in 18 states. Recently the company, which entered the mortgage market four years ago, opened a new branch office in Anaheim, CA, bringing to 38 the number of C&C branch offices across the country. Orange County and the Southern California housing market are among the priciest in the nation, and the high demand and lower inventory in those areas can be good for government and ...


July 24, 2015 - Inside FHA/VA Lending

VA Plans to Improve Quality Control Process, Appraisals a Huge Issue

The Department of Veterans Affairs’ Home Loan Guaranty program is planning to expand its quality-control process to help VA lenders improve the origination process. The goal is to make the VA program, which has seen a sharp spike in lending, work better for servicemembers and veterans, according to Michael Frueh, director of the VA home-loan guaranty program, during a recent panel discussion of government-backed mortgage insurance programs hosted by the Urban Institute. There are still obstacles to overcome, however, Frueh said. Delayed appraisals are a top complaint among VA lenders, who have to contend with the long wait to get VA appraisals back from appraisal management companies or appraisers. Lenders say that, in some of the hot real estate areas in the country, they have seen a number of contracts extended because appraisals were ...


July 10, 2015 - Inside FHA/VA Lending

VA Urges Lenders to Provide Relief To Disaster-Stricken VA Borrowers

The Department of Veterans Affairs has announced measures lenders may employ to provide relief to VA borrowers whose lives and homes were upended by recent severe storms, tornados and flooding in Texas, Oklahoma and Guam. VA mortgage relief would be available to the families of borrowers who died during these natural catastrophes and to borrowers whose homes were badly damaged or destroyed. Relief is also available to those whose work environments were destroyed or severely damaged. Other people have been indirectly affected as well, and the impact may continue to ripple throughout the country, as evacuees travel nationwide to seek support and shelter from family members in unaffected areas, according to the VA. VA encourages holders of guaranteed loans to extend forbearance to distressed borrowers and to provide counseling to them. Lenders are also authorized under VA regulations to reapply prepayments to ...


July 10, 2015 - Inside FHA/VA Lending

VA Encourages Lenders to Use an Auction Service to Terminate Loans

The Department of Veterans Affairs has issued guidance to servicers regarding the use of an auction service in lieu of a foreclosure sale to terminate a VA loan. The goal is to get more from foreclosure-sale proceeds to lower the veteran’s mortgage debt. Mortgage holders may find it better to pursue VA loan termination through an auction service, rather than having to waive a greater amount at foreclosure, the VA said. It also may raise awareness among potential bidders and increase marketability and competition, the agency said. While traditional foreclosure methods have long been a part of the loan termination process, they limit servicers’ chances of obtaining greater proceeds at sale, which are applied to lower the veteran’s debt. Consequently, VA ends up paying more for a claim and assuming the liability of managing and marketing a conveyed real estate-owned property. In addition, state and county ...


July 10, 2015 - Inside FHA/VA Lending

Rising Property Values Create Incentive for FHA, VA Refis

Rising home values could present a new opportunity for FHA borrowers to refinance into a conventional loan and enable those borrowers who choose to stay with FHA financing to take advantage of FHA’s reduced annual mortgage insurance premium, according to lenders. With house prices on the rise, FHA borrowers are seeing a build-up in equity. This might be a good time for them to remove that monthly payment and get out of their FHA loan, said Faramaz Moeen-Ziai, vice president of national sales and production at Commerce Home Mortgage in Huntington, CA. With an FHA-insured loan, coverage is for the life of the loan while private mortgage insurance on a conventional is cancellable when paid down to 79 percent of the loan amount. This might be especially beneficial to homeowners living in homes valued far less than what they owe on the property, or to holders of ...


July 10, 2015 - Inside FHA/VA Lending

Issuance of Government-Backed Ginnie MBS Increases in 2Q15

Ginnie Mae issuance of government-insured mortgage-backed securities rose a whopping 47.3 percent in the second quarter of 2015 from the previous quarter, powered by a robust FHA refinancing volume, according to an Inside FHA/VA Lending analysis of agency data. Government-backed Ginnie MBS production in the second quarter totaled $117.5 billion, up from $79.8 billion in the prior quarter. Volume year-to-date also increased by 57.7 percent from the first six months of last year. From May to June, government-backed securitization increased a modest 2.9 percent. FHA loans comprised 62.6 percent of Ginnie MBS issuance in the second quarter while VA accounted for 33.7 percent. Securitized loans with a Rural Housing Service guaranty represented 3.6 percent of total Ginnie MBS issuance during the period. FHA loan securitization was robust in the second quarter, as volume ... [ Charts ]


June 26, 2015 - Inside FHA/VA Lending

WA Regulators Accuse Quicken Loans of False VA Loan Advertising

Financial institution regulators in Washington state have charged Quicken Loans with using false, deceptive and misleading advertisements to target veterans and active military members with adjustable-rate refinance offers. According to a complaint filed by the Division of Consumer Services of the Washington State Department of Financial Institutions, Quicken Loans falsely implied in its direct mailings that it is associated with the Department of Veteran Affairs. The VA provides guarantees to fixed- and adjustable-rate mortgage loans to veterans and servicemembers through the agency’s Home Loan Guaranty program. Quicken Loans allegedly used graphics in its 5/1 ARM solicitations that resembled the seal of the VA, with the words “Governed By: United States Veterans Department.” In addition, the Michigan-based lender allegedly used an ...


June 26, 2015 - Inside FHA/VA Lending

VA Provides New Appraisal Review Tool to Enhance Risk Management

The Department of Veterans Affairs is providing VA lenders with LoanSafe Appraisal Manager, a new automated tool for appraisal review. The LSAM is designed to help VA lenders do a quick assessment of appraisal risk for VA policy compliance violations, over/under valuations and appraisal quality issues. The automated appraisal tool does not provide an estimate of value or make decisions for lenders. It does not accept or reject appraisals or characterize them as good or bad. Currently, every VA appraisal report must be reviewed either by a VA-designated fee appraiser or by a staff appraisal reviewer before the agency issues a notice of value. A notice of value is the reasonable value of the property for loan purposes. A staff appraisal reviewer (SAR) ensures that all VA loan requirements are satisfied. The reviewer might find some inconsistencies during the review and ...


June 26, 2015 - Inside FHA/VA Lending

VA Jumbo Securitization up in 1Q, 2 States Account for Over 55%

Ginnie Mae securitized $6.6 billion of VA jumbo loans in the first three months of 2015, up 15.9 percent from the prior quarter, according to an Inside FHA/VA Lending analysis of Ginnie Mae data. Jumbo loans – single-family mortgages with loan amounts exceeding $417,000 – comprised 18.7 percent of total VA originations in the first quarter. VA jumbo originations outpaced FHA jumbo production, which totaled $2.8 billion in the first quarter, up 17.0 percent from the prior quarter, according to the Inside Mortgage Finance database. VA jumbos in Ginnie mortgage-backed securities issued in the first quarter included modified VA loans as well as those originated in Alaska, Guam, Hawaii and the U.S. Virgin Islands. Wells Fargo ranked first among securitizers of VA jumbos in the first quarter, with $1.3 billion in production. Second-ranked Freedom Mortgage conveyed $652.7 million in ... [ 1 chart ]


Poll

A lot has been written about the ‘Millennial Generation’ being key to the future of the housing/mortgage market, but how much of your mortgage workforce includes Millennials – those born roughly between the years 1980 to 1999?

Less than 10 percent

15%

11 to 30 percent

33%

Greater than 30 percent

18%

It’s so small we can’t even measure it.

3%

We’re tired of reading about how important Millennials are…

30%

Housing Pulse