Reporting on VA Loans Impacted by Natural Disaster. The Department of Veterans Affairs is cautioning servicers against reporting as delinquent VA loans that are impacted by a natural disaster. The electronic default notification (EDN) should only be reported prior to the 61st day of delinquency if the borrower intends to abandon the property or pursue an alternative to foreclosure, according to VA. Cite “property problems” as the reason for default, the agency added. On the 61st day of delinquency, servicers should use “casualty loss” as the reason for default when reporting the EDN. This will help VA identify loan defaults caused by a natural disaster. Texas USDA Guaranteed Housing Program See Increased Volume. The USDA guaranteed single-family guaranteed housing programs in the Lone Star State are experiencing significant volume increases, and consequently, ...
Eric Kaplan of the Milken Institute: “I don’t think the non-agency market is ready to absorb the market that’s taken away from the GSEs without some significant signaling in advance.”
With the origination market expected to suffer the next two quarters – at least – some lenders are battening down the hatches, watching expenses, while others are pondering a serious move into non-qualified mortgages, something that wasn’t even on their radar screens two years ago.
With refinance volume declining, interest rates rising and home price appreciation cooling off, lenders are loosening underwriting standards. The trends could lead to higher delinquency rates than the pristine performance seen after the recovery from the financial crisis, but there’s not much to worry about at the moment, according to Moody’s Investors Service.
Borrowers with adjustable-rate and reverse mortgages may benefit significantly from the phase-out of the London Interbank Offered Rate (LIBOR), according to new research by the Urban Institute. But the news is not so good for investors.
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