The average credit score for an FHA loan delivered into Ginnie Mae mortgage-backed securities increased in 2023, while average scores for VA loans didn’t budge. (Includes two data tables.)
Ginnie MBS issuance held steady in January compared with the previous month. Refinance volume ticked up and volume involving modified loans was down. FHA loans accounted for 62.9% of issuance. (Includes two data tables.)
The Community Home Lenders of America recently called for a single credit scoring process across conventional and government home loan programs. Spokespersons for FHA, VA this week said the agencies are considering a bi-merge credit scoring process.
The vast majority of FHA loans originated by both banks and nonbanks are securitized. Meanwhile, Banco Popular is retaining some of its FHA production in portfolio.
FHA insured about $17.1 billion in new loans under its hospital mortgage insurance program between fiscal years 2000 and 2022, the Government Accountability Office said in a new report.
House passes tax bill with LIHTC provisions; FHA finalizes rules on branch office registration requirements; HUD to hold meeting of the Manufactured Housing Consensus Committee; and other news.
Counterintuitively, the bi-merge will increase the number of credit pulls necessary to complete the average mortgage loan application. Consumers will ultimately pay for those extra pulls.
The amount of Ginnie Mae servicing outstanding increased by 1.9% in the fourth quarter. On an annual basis, servicing volume was up 8.2%. Defaults on loans in Ginnie MBS are also rising, particularly for FHA loans. (Includes four data tables.)
HUD Secretary Marcia Fudge last week indicated she’d be willing to revisit the FHA mortgage insurance policy that requires borrowers to pay premiums for the life of the loan.