From the start of the Home Affordable Modification Program through the end of 2012, mortgages serviced for the government-sponsored enterprises accounted for the largest share of HAMP Activity. However, beginning this year, mortgages in non-agency mortgage-backed securities and loans in portfolio have overtaken GSE mortgages in terms of total HAMP activity. As of the end of the second quarter of 2013, non-agency mortgages accounted for 51.2 percent of the 1.21 million ... [Includes one data chart]
Recent supervisory efforts by the Consumer Financial Protection Bureau have focused on “sloppy” servicing transfers and other loss mitigation issues. In a “supervisory highlights” review published this week, the CFPB said that between November 2012 and June 2013, it discovered several issues with servicing transfers that can cause borrowers to miss payments, delay important processes or affect the good standing of a borrower’s mortgage. The CFPB said its examiners found noncompliance with ...
Cancelled Furlough Days. The Department of Housing and Urban Development has reduced the number of furlough days from seven to five days due to progress made in achieving the $69.6 million spending cuts mandated by sequestration. In this regard, previously scheduled furlough days of Aug. 16 and Aug. 30 are cancelled. As the end of FY 2013 approaches, HUD is making significant progress towards reaching its sequestration target, without needing additional furlough days, said Deputy Press Secretary George Gonzalez of HUD’s Office of Public Affairs. Government-wide automatic spending cuts became effective ...
Originations of non-agency jumbo mortgages continued to increase in the second quarter of 2013, according to a new ranking and analysis by Inside Nonconforming Markets. The growth was fueled by banks offering highly competitive interest rates in an effort to retain jumbos in portfolio. Wells Fargo was the top-ranked jumbo lender through two quarters in 2013, by a wide margin. The lender had $21.87 billion in jumbo originations in the first half of 2013, accounting for 19.4 percent of ... [Includes one data chart]
Fannie Mae is lowering its maximum loan-to-value ratio to 95 percent come November, and there is speculation that the decision could force some of that business over to FHA. The policy change was confirmed by the GSE when it sent out an update to users of its automated processing program, Desktop Underwriter. It also means that mortgage insurers could lose business at a time when many have shown a new willingness to take on more credit risk amid improving delinquencies and earnings. Mark Goldhaber, a former executive at Genworth Financial, which owns an MI company, told ...
The sale of residential mortgage servicing rights (MSRs) tied to Ginnie Mae mortgage securities is gathering steam with a handful of large deals currently in the market. Bank of America recently held an auction for $22 billion of legacy Ginnie MSRs, according to investment bankers familiar with the offering. Final bids were being taken this week. A winner has yet to be declared. A spokesman for BofA told Inside FHA Lending that in general the bank does not comment on MSR sales, though it has made exceptions when unloading very large packages. Earlier this year, for example, it sold just over ...
Lenders must consider debt disputes, collection accounts and judgments in analyzing a borrower’s credit worthiness because they are indicators of the borrower’s ability and willingness to meet his or her credit obligations, according to the FHA. In recently issued guidance, the FHA said lenders should analyze all collections and judgments, past and present, because they may indicate a borrower’s disregard for credit obligations. Such analysis helps decide whether a loan should be approved for FHA insurance, the agency said. The FHA amended its guidance on collections and disputed accounts in Mortgagee Letter 2013-24, and further clarified ...
Lenders must correct erroneous disclosures concerning mortgage insurance premiums (MIP) before submitting loans for FHA insurance, according to new FHA guidance. In an update to Mortgagee Letter 2013-04, FHA Commissioner Carol Galante said some mortgages originated since the termination of the MIP cancellation policy earlier this year still contain incorrect MIP-related disclosures. Under the revised policy, MIPs are no longer cancellable when the current loan-to-value ratio reaches 78 percent. Rather, MIP payments must be made over the entire life of the FHA-insured loan. The change is aimed at increasing ...
The reverse mortgage lending industry is working with the Department of Housing and Urban Development to implement two policy changes that would strengthen the FHA’s Home Equity Conversion Mortgage program. One policy change involves the development of a new HECM option that combines features of the fixed-rate, full-draw HECM Standard and the HECM Saver, according to Peter Bell, president and chief executive officer of the National Reverse Mortgage Lenders Association. HUD eliminated the standard 30-year, fixed-rate HECM in April because ...
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