Originations of non-agency jumbo mortgages increased 32.1 percent in the fourth quarter, aided by a modest reduction in Fannie Mae and Freddie Mac loan limits in high-cost markets and a surge in refinance lending. An estimated $37.0 billion in jumbos were originated in the fourth quarter, lifting annual production to $118.0 billion in 2011, a 13.5 percent increase from the previous year. It was the jumbo markets best year since 2007 for origination volume, and jumbos accounted for 8.7 percent of total mortgage lending ... [Includes one data chart]
Acquisitions boosted Ocwen Financial to the top subprime servicer spot at the end of 2011, according to a new ranking and analysis by Inside Nonconforming Markets. However, that was not the only significant movement among the top five subprime servicers, as American Home Mortgage Servicing changed more than its name. Ocwen serviced an $84.73 billion subprime portfolio at the end of 2011, a whopping 49.9 percent increase compared with the end of 2010. During that time, the amount of subprime mortgages outstanding decreased by 9.2 percent to an estimated $545.0 billion ... [Includes one data chart]
Increased mortgage insurance premiums combined with hefty penalties assessed on lenders will generate additional revenue that may keep the FHA mortgage insurance program afloat. Nevertheless, the price for keeping the fund solvent will make fewer borrowers qualified for an FHA loan, according to lenders. Lenders say the upfront mortgage insurance premium increase will have little effect on borrowers because the charge can be rolled into the loan amount. Changes to the annual MIP, however, will decrease FHA business in general because the cost of the annual MIP will have to be included in the ...
The Department of Housing and Urban Development is seeking comment on a revised proposal to reduce the amount of closing costs a seller may pay on behalf of a borrower purchasing a home with an FHA-insured mortgage loan. The seller-concession reduction proposal is part of a series of steps that HUD has undertaken to restore the FHA Mutual Mortgage Insurance Funds capital reserve account while preserving the FHA as a source of affordable mortgage credit for low and moderate income and first-time homebuyers. Current HUD policy allows up to 6-percent seller concessions. Payments under the cap are considered ...
Failure by a sponsored third-party originator or by an FHA-approved mortgagee acting as a sponsored TPO to comply with FHA requirements will result in drastic administrative action that may include loss of FHA approval and civil penalties, the Department of Housing and Urban Development warned. The warning came as HUD clarified the requirements for the origination, closing and submission of mortgage loans for FHA insurance endorsement through sponsored third-party originators. The agency is clamping down on bad business practices that lead to high delinquency and claims rates, which ultimately weaken ...
The Department of Housing and Urban Development announced it will waive for another year the requirement for small lenders to submit annual audited financial statements to the Department of Housing and Urban Development when seeking FHA approval or renewal. The waiver relates to requirements spelled out in a mortgagee letter 2010 to strengthen risk management in the FHA single-family mortgage insurance program. Issued in June 2010, Mortgagee Letter 2010-20 implemented reforms that increased the net-worth requirements for FHA-approved mortgagees, eliminated FHA approval of loan correspondents and changed ...
The Department of Housing and Urban Development has updated the FHA TOTAL Mortgage Scorecard User Guide to reflect current FHA guidance on derogatory or delinquent credit and on borrower employment history. A lender is required to downgrade a mortgage loan application to refer and manually underwrite the loan for cash-out refinance transactions if any mortgage trade line, including mortgage line-of-credit payments, show any mortgage delinquencies within the most recent 12 months or if it shows less than six months of payments on the existing mortgage. The same guidance applies if the loan is ...
State housing finance agencies are returning to Ginnie Mae as investors appetite for state mortgage revenue bonds continue to wane and the government-sponsored enterprises are no longer major purchasers. With funding severely constrained, HFAs have turned increasingly to FHA-insured mortgage loans and Ginnie Mae securitization to finance their long-term, fixed-rate mortgage revenue bonds. The MRBs enable the state agencies to continue to offer mortgage products at affordable rates to lower-income and first-time homebuyers. President Obamas FY 2013 budget noted that, among the new issuers, numerous HFAs have gone ...
Ginnie Mae will publish, in advance, the CUSIP and pool information for multiple issuer pools (MIP) on its website for the current month, plus the upcoming three months of issuance. The information will be published by pool term, pool type and security interest rate. This enhancement applies to all securities with an April 1, 2012, issue date and thereafter. According to Ginnie Mae, publishing the CUSIP and pool numbers will improve issuers ability to manage their loan pipelines and MIP loan package submissions before the pool is finalized. Both the finalized CUSIP and pool numbers as well as the future CUSIP and pool numbers for MIPs will be ...
The federal rulemaking process can be confusing at times. Currently, the Department of Housing and Urban Development sets the area-based mortgage loan limits annually and allows local interested parties and housing industry groups to appeal for increases in the FHAs maximum mortgage limits for specific counties or metropolitan statistical areas. Any interested party may submit a request for an increase in the mortgage limits of a particular area if the party believes that the present limit does not accurately reflect the higher home sales prices in that area. Requests must be adequately supported by ...