JPMorgan Chase and Credit Suisse are coming to market with separate jumbo mortgage-backed securities that have some sharp differences in terms of collateral. The $379.78 million JPMorgan Mortgage Trust 2015-3 includes some unique characteristics such as a handful of loans with combined loan-to-value ratios above 80.0 percent and some interest-only mortgages. While the average combined LTV ratio for mortgages to be included in the deal is 69.9 percent, 15 mortgages ...

A broad regulatory relief bill pushed by Sen. Richard Shelby, R-AL, passed the Senate Committee on Banking, Housing, and Urban Affairs last week on a 12-10 party-line vote. While Democrats oppose portions of the bill, they are seeking changes to standards for qualified mortgages similar to those proposed by Shelby. The Financial Regulatory Improvement Act of 2015 would establish a qualified-mortgage safe harbor for certain loans held in portfolio. The main difference between ...

With little movement from Congress to reform the government-sponsored enterprises, some industry analysts have called on the Obama administration to re-capitalize the GSEs and end their conservatorships. While such an action appears unlikely, the move could help boost activity in the non-agency market. If Fannie Mae and Freddie Mac were privatized, they would likely have to increase their capital from current levels and face increased borrowing costs. Interest rates ...

Servicing on four non-agency mortgage-backed securities will be transferred from Ocwen Financial to Select Portfolio Servicing, according to Moody’s Investors Service. Investors in the MBS voted to transfer servicing on the 3,490 mortgages in the deals. The Securities and Exchange Commission is investigating Ocwen and potentially other servicers regarding the use of collection agents. In a quarterly report filed last week, Ocwen said it received a letter from ... [Includes five briefs]

An FHA proposal aimed at clarifying loan-certification rules is a step in the right direction but it needs more work, according to industry observers. Lenders declined to comment on the proposed form changes but they all agree that the proposal does not go far enough. The revisions aim to make the language in Form 92900-A (HUD Addendum to Uniform Residential Loan Application) clearer for both borrower and lender. Applicants for an FHA or a VA loan sign the addendum to certify to the government that the information provided by the borrower on the mortgage loan application is correct. By signing the addendum, the borrower certifies that he or she will make payments on the home loan or become indebted to the federal government upon failure to repay the loan. For lenders, signing the form certifies that the loan application meets all of FHA’s insurance requirements. This is where lenders often ...

Security issuances backed by VA loans totaled $35.5 billion in the first quarter of 2015, with VA streamline refinance loans accounting for 57.7 percent, according to an Inside FHA/VA Lending analysis of Ginnie Mae data. Approximately $20.5 billion in VA interest rate reduction refinancing loans were securitized during the first three months as borrowers took advantage of lower interest rates.“For the last three to four months, rates have been bottoming out again, and if rates are lower it makes sense to refinance,” said Jon Shrum, vice president of Commerce Home Mortgage, a VA-certified lender in Huntington Beach, CA. An estimated $14.5 billion in VA purchase mortgages also were securitized during period. VA loans comprised 13.1 percent of all loans in Fannie Mae, Freddie Mac and Ginnie Mae mortgage-backed securities. California, Virginia, Texas, Florida and Washington, ... [2 charts]

NTFN Inc., a direct-endorsement lender in the Dallas-Ft.Worth area, may have to indemnify FHA for losses incurred allegedly due to sloppy underwriting. Results of an audit performed by the Department of Housing and Urban Development inspector general found that 23 loans out of the 3,046 FHA loans originated by NTFN from July 2012 through June 2014 were seriously delinquent in the first year. FHA is considering whether to require indemnification. Despite its low FHA origination volume, NTFN was targeted for a compliance audit because its loan default rate was the second highest in its principal area of business during the audit period. HUD auditors attributed the subpar underwriting to the lender’s poor due diligence, failure to perform early payment default and quality control reviews and to not having an adequate quality control system. The unpaid principal balance of the ...

Whistleblowers that bring a False Claim Act claim against an FHA lender based on previous publicly disclosed information have no standing, according to a recent federal district court ruling. Judge Jack Zouhary of the U.S. District Court for the Northern District of Ohio dismissed an FCA lawsuit against U.S. Bank because the whistleblower had neither direct nor independent knowledge of the bank’s alleged false claims – two basic requirements for standing in a whistleblower suit. The Advocates for Basic Legal Equality (ABLE), an Ohio-based legal aid group, filed an FCA lawsuit against U.S. Bank for allegedly disregarding and violating FHA regulations. The group accused the bank of filing false claims and collecting payments without evaluating loss mitigation alternatives before foreclosing on properties. According to ABLE, it had consulted with “many people,” whose mortgage loans were ...

The Department of Veterans Affairs is looking into reports that a high percentage of VA loans are not closing on time, creating a disincentive for veterans who might want a VA loan. According to Jeff London, deputy director of the VA Loan Guaranty Service, his staff is researching the most recent closing times “to understand the reasons behind the increase for the industry as a whole” as well as how lengthy closing times are affecting veterans. “We have invested significant effort in reducing closing times so that our industry partners will seek to offer VA loans,” he said. Results of a recent Campbell/Inside Mortgage Finance HousingPulse Tracking Survey indicate that the share of VA loans closing on time fell to 55 percent in March 2015 from 70 percent in April 2014. The data suggest that 45 percent of VA loans are still experiencing serious delay. In addition, the average closing time for a VA loan was ...

The Department of Veterans Affairs has issued a policy clarifying that VA lenders must treat veterans in same-sex or opposite-sex marriages equally and fairly when processing and underwriting their home-loan applications. The policy is effective immediately. Under the new policy announced on May 19, the VA will process all claims and applications involving same-sex marriages in the same manner as claims and applications based on opposite-sex marriages, “without any additional scrutiny or development.” Language on VA forms, web pages and other VA communication materials will be revised to ensure that all veterans, VA program administrators and personnel are aware of the equal-treatment policy. The new instructions require VA lenders to accept a claimant’s or an applicant’s assertion of ...