As refinancings continue to fall, lenders that specialize in such loans will see their franchise values drop dramatically.

The guidance, effective October 15, applies to manually underwritten FHA loans and requires lenders to document reasons for approving a mortgage when the borrower has collection accounts or judgments.

Combining their year-to-date results, the FHA and VA reported $105.5 billion of single-family originations during the second quarter of 2013.

Even with the incentive fees offered by the HAMP program, residential servicers favor proprietary mods.

HUD Seeks Comment on Proposed Multifamily Rule. The Department of Housing and Urban Development is seeking comment on proposed changes to regulations covering contract rights and obligations of FHA multifamily lenders. When a lender finances multifamily loans through bonds or bond anticipation notes, it uses the FHA insurance claim funds to pay off the remaining bond debts. At times, the claims payments are greater than the remaining bond debts. The proposed rule would require lenders to return to the FHA the excess bond funds that remain after ...

The VA home loan program was up 23.5 percent in the first six months of 2013, although activity slowed by 1.5 percent from the first quarter, according to Inside FHA Lending’s analysis of VA data. The VA reported $74.4 billion in purchase and refinanced loans during the first six months, with refis accounting for 52.9 percent of total volume. The program’s share of the overall mortgage insurance market fell to 22.2 percent in the second quarter from 24.3 percent in the previous quarter. Combining their year-to-date results, the FHA and VA reported a combined ... [1 chart]

The FHA’s FY 2013 commitment authority for its multifamily programs will run out on Aug. 15, forcing loan applicants to suspend their projects until Congress can approve a new funding commitment for FY 2014. The FHA has informed multifamily, risk share and healthcare program participants that the $25 billion commitment authority allotted by Congress for FY 2013 is nearly gone. The agency said it does not have enough funds for all applications currently in the pipeline. The agency continued to ...

Continued abuses has caused single-family loan originations to remain a top priority for reviews and targeted audits, according to the Department of Housing and Urban Development’s Office of the Inspector General. A specialized audit program has been developed to target lenders, considering a number of high-risk indicators, the OIG said. Although the agency did not elaborate, it did note Congress’ keen interest in FHA solvency and in eradicating policies and practices that contribute to the agency’s current financial woes. The OIG said it plans to ...

The real estate industry recommended establishing a new FHA condominium program structure to ease the burden on condo projects seeking FHA certification without posing more risk to the Mutual Mortgage Insurance Fund. Commenting on FHA’s proposal to collect information on the agency’s condominium certification process, a coalition of real estate groups said the current program is too burdensome for condo owners and potential buyers with an FHA-insured mortgage. Comprised of the National Association of Realtors, National Association of Home Builders, Institute of Real Estate Management and the ...

The Department of Housing and Urban Development will implement new guidelines spelling out changes to the Home Equity Conversion Mortgage program on Oct. 1. The guidelines will establish additional requirements to reduce losses and improve the fiscal safety and soundness of the HECM program, which has been hit hard by massive losses due to borrower default and steep home price declines. An FY 2012 actuarial audit projected $2.8 billion in HECM losses. However, the audit also projected a steady improvement of the Mutual Mortgage Insurance Fund’s HECM portfolio over the next seven years, becoming negative ...