Residential lenders that rely on “downpayment assistance” programs (DPAs) operated by state housing finance agencies are growing nervous about a lengthy and ongoing audit being conducted by the Inspector General of the Department of Housing and Urban Development. Late this week, a spokesman for the HUD IG’s office confirmed to Inside Mortgage Finance that audit has yet to be completed. “It’s getting into the final stages,” he said. “We originally thought it would be done in early 2016.” He stressed...
Falling delinquency and foreclosure rates over the last few years have continued to break recent records, according to industry sources, thanks to several factors including an improved housing market and price appreciation. As of the end of March, only 4.95 percent of the $5.08 trillion of home mortgages covered by the Inside Mortgage Finance Large Servicer Delinquency Index were in default or foreclosure status. That was down from 5.54 percent at the end of the fourth quarter. The figures are not seasonally adjusted. The Mortgage Bankers Association reported...[Includes one data table]
Despite low inventory and financing conditions that can favor other types of homebuyers, first-timers are increasing their market share, according to the latest Campbell/Inside Mortgage FinanceHousingPulse Tracking Survey. First-time homebuyers accounted for 38.9 percent of home purchases in April, based on a three-month moving average. That was up from a 38.1 percent share the previous month and a 37.2 percent share in April 2015. “Demand from first-time homebuyers is...
Frustrated by inaction on housing finance reform, a dozen conservative organizations led by the National Taxpayers Union called on Congress to begin recapitalizing Fannie Mae and Freddie Mac. The coalition of center-right organizations urged Congress to pass H.R. 4913, the “Housing Finance Restructuring Act of 2016.” They said the Treasury sweep of the government-sponsored enterprises’ profits implemented in 2012 has “jeopardized” the financial system and taxpayers. “If there is one thing this presidential campaign has revealed, it is...
The Consumer Financial Protection Bureau last week issued annotated versions of the loan estimate and closing disclosure forms that provide citations to the disclosure provisions in Chapter 2 of the Truth in Lending Act referenced in the integrated disclosure rule. However, neither of the two documents appear to go anywhere near providing the kind of clarity the industry hopes to get from the agency’s recently announced new TRID rulemaking. In fact, the documents are more notable for what they do not provide than for what they do. “This document does not include...
The heavy role of Fannie Mae, Freddie Mac and Ginnie Mae in the post-crisis mortgage market has brought lower rates and considerable liquidity to the mortgage business, but industry leaders question whether private capital can meet the growing need to finance nonbank servicing portfolios and the eventual pullback of the Federal Reserve. “We wouldn’t have the same price we have now without the government being there; its programs provide a 2 to 3 percent discount,” said Stan Middleman, CEO of Freedom Mortgage Corp., during a panel session at the Mortgage Bankers Association’s secondary market conference this week. “They are the whole enchilada. If you took them out, we’d have nothing.” The government-sponsored enterprises are...
Mortgage call-center platforms are in high demand these days, according to industry advisors, but there’s one key caveat for potential buyers: rising interest rates. “Who’s looking at buying call centers?” asked Paul Hindman, business development chief for Grid Financial Services. “Just about everyone.” It would appear...
All three major food groups in the contemporary mortgage market – government-insured, jumbo and conventional conforming – saw roughly the same drop in new originations from the fourth quarter of 2015 to the first three months of 2016, according to a new analysis by Inside Mortgage Finance. Production of loans with FHA, VA and rural housing guarantees held up a little better than the other sectors, with estimated originations slipping 1.0 percent from the fourth quarter. Although purchase mortgages account for a relatively higher share of originations in the government-insured market, there was a boost in refinance lending, especially in the VA program, that helped sustain overall production in the sector. The conventional-conforming and jumbo markets were...[Includes two data tables]
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