The national loan limit for FHA-insured single-family mortgages will remain unchanged throughout 2016, but 188 counties will see their high-cost limits rise due to house-price changes. The FHA national loan limit “ceiling” for forward mortgages will remain at $625,500, while the FHA “floor” will stay at $271,050 for next year. For example, San Francisco, Los Angeles, Marin, and Silicon Valley, where the loan limits are currently at $625,500, will see no change in 2016. The same will be true for many counties whose FHA loan limits fall between the national floor and ceiling, like Sacramento and Fresno, for instance. On the other hand, 188 counties like Napa, Riverside, San Bernardino and San Diego will see their forward loan limits increase by at least $1,150 to as much as $30,240. Each year, FHA readjusts its loan limits based on 115 percent of the median house price in the area. The loan-limit floor is set at ...
Compliance issues involving disclosure requirements that took effect in October could be delaying the issuance of jumbo mortgage-backed securities, according to a report this week from Moody’s Investors Service. The rating service said several third-party review firms found compliance violations on more than 90 percent of a sample of 300 mortgages reviewed for compliance with the TILA-RESPA Integrated Disclosure rule. Many of the TRID violations were ... [Includes three briefs]
Less than 1.0 percent of the dollar volume of jumbo mortgages originated in 2014 would have been eligible for sale to the government-sponsored enterprises based on higher GSE loan limits that are set to take effect next year in nine metro markets, according to an Inside Nonconforming Markets analysis of data from the Home Mortgage Disclosure Act. The Federal Housing Finance Agency recently announced that high-cost loan limits will increase in 39 counties next year, with limits ...
Originations of adjustable-rate mortgages have not kept pace with overall mortgage production this year, according to a new ranking and analysis by Inside Nonconforming Markets. An estimated $152 billion in ARMs were originated through the first three quarters of 2015, down 10.1 percent from the same period last year. In that span, total first-lien production has increased by 42.9 percent, according to estimates by affiliated publication Inside Mortgage Finance ... [Includes one data chart]
Investor demand for rated securitizations backed by re-performing and nonperforming mortgages is increasing both in the U.S. and in Europe, according to senior analysts at Moody’s Investors Service. The analysts noted a strong pipeline of RPLs in the U.S. securitization market as investors purchase NPLs and turn them into re-performing loans. Max Saury, a senior analyst with Moody’s Structured Finance Group, estimates the current NPL market at $300 billion, excluding nonperforming non-agency MBS. There have been...
Originating nonprime mortgages can be done without repeating the mistakes that contributed to the financial crisis, according to officials at Angel Oak Mortgage Solutions. The firm, one of the most prominent lenders in a severely constrained market, launched in early 2014 and offers nonprime mortgages via wholesale and correspondent channels. Tom Hutchens, a senior vice president of sales and marketing at Angel Oak, said the lender is comfortable extending ...
This lender said finding good appraisers can sometimes be a challenge and predicted that eventually appraisals on such mortgages could cost upwards of $1,000…
Mortgage securitization rates have been moving higher in 2015 as ongoing new issuance catches up with this year’s surge in primary market originations. A new Inside MBS & ABS analysis reveals that 69.2 percent of the loans originated through the first nine months of 2015 have been pooled in residential MBS, up from the 67.8 percent securitization rate for all of last year. The mortgage securitization rate had dropped...[Includes one data table]
Fannie Mae and Freddie Mac sold $12.58 billion of credit risk through their popular back-end risk-transfer deals during 2015, according to a new Inside MBS & ABS tally of new issuance in the Connecticut Avenue Securities and Structured Agency Credit Risk platforms. While that was up 16.8 percent from the total for 2014, observers continue to call for more diversification in the government-sponsored enterprises’ risk-transfer activities, and greater transparency. The Federal Housing Finance Agency “should require...[Includes one data table]
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