Correspondents, which account for a large percentage of government-insured lending, saw their share grow in 2017 even as retail went through a production slump, according to an analysis by Inside FHA/ VA Lending.
New Home Mortgage Equity Conversion production fell in the third quarter even as changes to the program, including a 200 basis point increase in the upfront HECM insurance premium, took hold in September, according to Inside FHA/VA Lending’s analysis of FHA reverse-mortgage activity.
Ginnie Mae’s latest efforts to rein in serial VA refinancing and rapid prepayments in mortgage-backed securities pools augur additional changes to pooling and refi requirements at Ginnie and the Department of Veterans Affairs, analysts said.
The Department of Housing and Urban Affairs plans to act on two new rules in 2018 relating to allowable fees and charges on VA loans as well as the type of loans that are “qualified mortgages.”
The mortgage industry is beginning to get a whiff of what reform of the nation’s housing-finance system might look like next year: a federal gurantee on a new breed of conventional MBS but no backing – at all – of the entities that issue guaranteed securities.
FHFA's Mel Watt: "While it is apparent that a draw will be necessary for each enterprise if tax legislation results in a reduction to the corporate tax rate, FHFA considers the $3 billion capital reserve sufficient to cover other fluctuations in income in the normal course of each Enterprise’s business.”
While combined GSE servicing still accounted for a hefty 44.9 percent of single-family mortgages, it has continued to drift lower over the course of 2017…
Mel Watt continued: “We, therefore, contemplate that going forward enterprise dividends will be declared and paid beyond the $3 billion capital reserve in the absence of exigent circumstances.”
Beginning in tax year 2018, a deduction won’t be allowed for interest paid on home-equity loans unless proceeds from the loan are used to improve the residence…
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