Ginnie Mae is seeking comment on several proposed data collections, including those that would strengthen the agency’s ability to monitor participants in its mortgage-backed securities programs. Due to its growing concern over the influx of non-depository issuers into the single-family MBS program, Ginnie has proposed to collect more loan-level data to supplement the information already being collected and reported on a monthly basis. The proposed data collection consists of bankruptcy-related information (action type, case identifier, chapter type, bar date) as well as borrower-related information (borrower bankruptcy indicator, classification type, total mortgaged properties, counseling initiated indicator and credit score date). Other proposed new data include document custodian ID, type of insurance claim coverage, investor unpaid principal balance (UPB), adjustment to ...
The number of underwater borrowers seeking to refinance their conventional mortgages into an FHA loan fell in fiscal 2014 from the previous year, according to an Inside FHA Lending analysis of agency data. The number of endorsements under the FHA Short Refinance program totaled 1,327 at the end of fiscal 2014, down from a record 1,662 in the prior year. Endorsements hit their peak in fiscal 2013.A total of 5,140 distressed conventional loans with a combined original mortgage amount of $784.9 million were refinanced under the program over the five-year period. In order to participate, borrowers must be current on their mortgage payments, have a credit score of 500 or greater and owe at least 15 percent more on the property than their home is actually worth. Lender participation is strictly voluntary. More importantly, the lender or investor must be ...
Fannie Mae has begun purchasing rural housing loans with a Department of Agriculture/Rural Development guarantee. The government-sponsored enterprise accepted delivery of Section 502 (RD-502) loans from USDA-approved lenders on Nov. 3 – an open challenge to Ginnie Mae, which has dominated the market. The loans were delivered as standard products with no variance required. Other government-backed loans such as FHA and VA continue to require a negotiated variance. The Section 502 single-family guaranteed housing loan program provides financing to low- to moderate-income rural homebuyers. A community is eligible for 30-year fixed-rate RD-502 loans if it is located in an area that meets the USDA’s definition of “rural.” The Farm Bill, signed into law in February of this year, defines “rural” as any area outside of city limits with a ...
Essent EVP to Retire in March. Adolfo Marzol, Essent Guaranty’s executive vice president, will step down, effective March 31, 2015, after five years with the company. VA Hybrid Adjustable-Rate Mortgage Pooling Eligibility. The Department of Veterans Affairs recently expanded the type of loans it will guarantee to include 7/1 and 10/1 hybrid ARMs. While Ginnie Mae’s Mortgage-Backed Securities Guide does not bar the inclusion of hybrid ARMs in Ginnie MBS, GinnieNET is not currently able to process these loans for pool processing. GinnieNET is being updated in order to accommodate VA 7/1 and 10/1 hybrid ARM pooling. Effective with issuances dated on or after Dec. 1, 2014, VA 7/1 and 10/1 hybrid ARMs will be eligible for pooling. CFPB Publishes Revised List of Rural and Underserved Counties. The Consumer Financial Protection Bureau has published its 2015 list of ...
FHA lenders capped a nine-month production run with a total of $99.39 billion in forward mortgages, thanks to a strong push in the third quarter of 2014, according to Inside FHA Lending’s analysis of agency data. Third-quarter production totaled $38.3 billion, up 16.6 percent from the previous quarter. Year-over-year originations, however, were off by 43.0 percent. FHA endorsements have now fallen from a peak of 1.8 million loans in FY 2009 to approximately 786,000 in FY 2014, according to the latest independent actuarial review of the health of the Mutual Mortgage Insurance Fund. The 57 percent reduction in endorsements takes FHA closer to the lower levels of activities seen just prior to the housing bubble, the report noted. A sharp decline in refi activity drove the substantial drop in forward loan endorsements in fiscal 2014. Previously, many homeowners ... [1 chart]
Mortgage companies may not realize it, but the CFPB is partnering with the state attorneys general, the Department of Justice, and in some cases, the Department of Financial Services in New York.
In regard to misrepresentations, relief will not be offered if it can be proved that a borrower was misled by the originator. And, of course, any mortgage subject to fraud must be bought back.
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