The Department of Housing and Urban Development is adopting the mortgage banking industry’s data standards format for the FHA’s TOTAL Mortgage Scorecard, which HUD uses to evaluate the credit risk of FHA loans that are submitted through an automated underwriting system. The standards were developed by the Mortgage Industry Standard Maintenance Organization (MISMO), a nonprofit subsidiary of the Mortgage Bankers Association. MISMO is an open data standards group that promotes consistency among mortgage transaction participants to reduce loan processing costs, increase transparency, and ultimately ...

Industry response to a proposal to consolidate Ginnie Mae I and II mortgage-backed securities programs has been positive overall despite certain investor and issuer concerns, according to Ginnie Mae. In an industry update, Terry Carr, Ginnie Mae’s senior advisor of communications and Congressional relations, explained that meetings with stakeholders over the past three months have been productive. “This concept has been well-received,” she said. Ginnie Mae will soon begin developing a blueprint laying out the mechanics for converting ...

Ginnie Mae guaranteed more than $216.9 billion in mortgage-backed securities during the first half of 2013, up 18.8 percent from the same period last year. Issuance was also up 8.0 percent in the second quarter from the first quarter, according to an Inside FHA Lending analysis of Ginnie Mae data. Not surprisingly, a significant share – $132.8 billion – of Ginnie Mae MBS issuances over the six-month period were backed by FHA loans. VA accounted for $72.1 billion while Rural Housing Service loans totaled $10.5 billion. Ginnie Mae issuances dropped during the first quarter but surged in the second quarter as ... [1 chart]

The two GSEs securitized $56 billion of home loans that included private MI coverage during the second quarter, a 12 percent jump from 1Q.

The changes also clarify which mortgages will be considered for purposes of determining “small servicer” status.

Regulators in New York state are concerned that the increased MIP could raise the loans’ APR and convert them into subprime.

Cerberus' purchase of PREO Mortgage of Atlanta could be the beginning of something big for the company.

Over the years Sharga has briefed government organizations such as the Federal Reserve and Senate Banking Committee.

Two different groups holding Fannie Mae and Freddie Mac stock filed suit against the government this week claiming that the Treasury Department and the Federal Housing Finance Agency are illegally poaching the profits from Fannie Mae and Freddie Mac that should go to shareholders. The FHFA and Treasury illegally implemented the so-called sweep amendment last summer that altered Fannie’s and Freddie’s preferred stock purchase agreements, according to the suits. The amended agreement allows the government to seize nearly all the profits of the two government-sponsored enterprises. This is a direct violation of the 2008 conservatorship legislation, according to the lawsuit filed by hedge fund Perry Capital in the U.S. District Court for the District of Columbia. Less than two days later, Fairholme Capital Management filed...

In general, mortgage applications are off 25 percent from their peak. Meanwhile, a Wells Fargo employee with an NMLS number has been arrested.