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.
A GSE bill? Since Congress and President Obama have such a strong track record of working together on legislation we know how that’s going to turn out…
Mortgage originations increased in all the major product categories during the third quarter of 2014, although new adjustable-rate mortgage lending was down slightly. A new Inside Mortgage Finance analysis shows that conventional-conforming originations increased by 11.7 percent from the second quarter to the third. That was slightly faster than the 10.2 percent increase in jumbo production and the 10.1 percent rise in government-insured lending. The home-equity market showed...[Includes two data charts]
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