VA Activity

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

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 ]


July 1, 2016 - Inside FHA/VA Lending

VA Aims to Garner Better Appraisal Reviews through CoreLogic’s LSAM

The Department of Veterans Affairs is planning to conduct computer-based training for appraisal managers to improve the way they assess the VA Home Loan Guaranty program’s appraisal process. The VA said it hopes to garner more positive feedback from staff appraisal reviewers this year by having them train with LoanSafe Appraisal Manager (LSAM). LSAM, an appraisal risk-analysis tool from CoreLogic, automatically evaluates all the data and form fields in an appraisal, quickly returning an easy-to-use summary of key valuation, market-risk factors and compliance issues. In June last year, the VA announced an automated Appraisal Management Service (AMS) that includes the LSAM product for use in enhancing the appraisal review process prior to issuance of the Notice of Value. The AMS system provides lender and servicer appraisal processing programs and staff appraisal reviewers (SARs), which will ...


July 1, 2016 - Inside FHA/VA Lending

No-Down Option, Better Borrower Profile Help Fuel VA’s 1Q Growth

VA home loan guarantees reported modest growth in the first quarter of 2016 thanks to the program’s no-downpayment feature and higher-quality borrowers, according to Inside FHA/VA Lending’s analysis of agency data. The fourth quarter of 2015 was the worst quarter in an otherwise good year for VA lending, as lenders racked up $35.2 billion in total originations, down 21.0 percent from the third quarter, which was VA’s most productive for the year. However, the first three months of 2016 are off to a promising start with overall VA volume totaling $37.1 billion, a 5.5 percent improvement from the prior quarter. VA purchase volume was down 8.1 percent in the first quarter to $18.2 billion from the previous quarter, while VA IRRRL (interest rate reduction refinance loans) production rose 43.4 percent to $10.9 billion over the same period, data further showed. VA’s no-downpayment option in conjunction with the ... [ 1 chart ]


July 1, 2016 - Inside FHA/VA Lending

Nonbanks’ Share of Government-Insured Market Growing Rapidly

Ginnie Mae has good reason to be concerned about rapid demographic change in its relatively small issuer community. Nonbank institutions – many of them relatively newly formed and based on nontraditional business models – are taking over the market. Nonbank issuers accounted for a whopping 69.4 percent of Ginnie’s issuance of single-family mortgage-backed securities during the first quarter of 2016. A year ago, their share was 64.6 percent. Two years ago it was 46.7 percent. With those kinds of gains on the production line, it’s not hard to see why nonbanks are claiming a growing share of Ginnie servicing outstanding. At the end of March, nonbanks owned 46.7 percent of Ginnie single-family mortgage servicing rights, up a hefty 11.5 percentage points in one year. That rate of growth can’t be accomplished just by producing new MBS because the servicing market simply doesn’t grow that fast. (Although the Ginnie market has grown significantly faster than any other segment of ... [ 2 charts ]


June 17, 2016 - Inside FHA/VA Lending

VA Servicer Reminders: Conveyance Guide, POC List, Compromise Sale

The Department of Veterans Affairs Home Loan Guaranty staff is reminding VA servicers of new title requirements taking effect this week for conveying properties to the VA. Under VA regulations, a conveyance or transfer of real property to the department is acceptable if the holders of the VA-guaranteed loan provide covenants or warranties against the acts of the holder and/or their agents. In addition, conveyances would be acceptable to the VA if it vests or entitles the agency to such title as is. In addition, the VA would take possession of collateral as long as it is acceptable to prudent lenders, informed buyers, title companies and attorneys in the community in which the property is located. However, the VA’s determination of clear and marketable title rests on state statutory requirements, the agency noted in its guidance. The VA is providing servicers a revised state-by-state list of ...


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%.
Better by 11% to 25%.
Off the charts better. Applications are great now.
Worse than 1H, but not by much.
A lot worse. But not sure on the damage.

vote to see results
Housing Pulse