Approximately 48 percent of FHA loans that underwent post-endorsement review by the FHA in the third quarter of 2013 received an “unacceptable” rating – a commonly high percentage of deficient FHA-insured loans that lenders could lower through mitigation. The FHA reviewed 6,692 FHA-insured loans between July 1 and Sept. 30, 70 percent of which were home-purchase loans, 25 percent streamline refinancings, and 5 percent rate and term refis. Of the total loans analyzed, 36 percent had certain deficiencies, 19 percent showed early payment default (EPD), and only 16 percent met FHA underwriting standards, according to the agency’s latest report on loan-file review findings.

FHA and VA loans backing Ginnie Mae pools in 2013 showed an average mid-range FICO score of 693, lower debt-to-income ratio and an average loan size of $187,268, confirming strict underwriting in both government programs, according to an Inside FHA Lending analysis of Ginnie Mae loan-level disclosures. Issuers securitized $370.4 billion of mortgages with first payment date in 2013 through November. Loan characteristics exclude loans with no information reported.

The Department of Housing and Urban Development has delayed the implementation of a new requirement to assess the financial condition of borrowers seeking a Home Equity Conversion Mortgage loan, which was to take effect on Jan. 13. HUD’s decision to delay responds to an industry concern that the initial effective date does not give lenders sufficient time to customize appropriate software, hire and train new underwriters and complete other critical implementation tasks. It would take at least three months to do all these things, lenders said.

During the next 12 months, investors will have to navigate through numerous uncertainties, including all forms of policy risk: monetary, fiscal, economic and the fate of the GSEs.

While banks have put an emphasis on originating jumbo mortgages for portfolio, the uptick in total mortgages outstanding was largely driven by originations of agency mortgages.

Freedom has big expansion plans for the new year. Company CEO and founder Stan Middleman recently told IMFnews Daily that he plans to hire between 200 and 500 residential loan officers in 2014.

Most of the underlying mortgages have terms of six to nine months, but with a warehouse line in place the terms could range from three to five years.

A few months ago, sources close to the BofA case, said the FHFA was hoping for a settlement in the range of $13 billion.

Will well-known mortgage trainer Barry Habib stick with Residential Finance Corp., a company whose assets are in the process of being sold? It’s hard to say since RFC isn’t answering questions on about the firm’s future.

In the latest year-end closeout of buyback deals before the ball drops on 2013, Flagstar Bancorp announced late Monday that it has entered into an agreement with Freddie Mac to “resolve substantially” claims that the bank sold faulty mortgage loans to the GSE between 2000 and 2008.