With the Consumer Financial Protection Bureau declining to provide any more formal guidance on legal liability for secondary market players when originators make errors in TRID mortgage disclosures, a group of due diligence firms is moving ahead with their own clarifications. High-level sources familiar with the matter, and who spoke to Inside MBS & ABS under the condition of anonymity, said the forthcoming clarifications have been vetted by legal counsel and are almost ready for viewing. Several top third-party review/due diligence firms are involved in the effort, including Clayton Holdings and Opus. All the major rating agencies are involved as well. “We’re working to calibrate our methodology, to bring it in line with the spirit of the CFPB letter,” said ...
Mortgage M&A historians might recall that last decade, before the financial crisis struck, Countrywide Financial Corp. was in serious talks to buy PHH’s mortgage business...
With only a few isolated exceptions, VA and FHA lending was up sharply across the country last year, outstripping the private mortgage insurance business in nearly every state of the U.S., according to a new analysis by Inside FHA/VA Lending. Overall, FHA single-family mortgages securitized by Ginnie Mae increased 60.5 percent from 2014 and VA production was up 39.4 percent. Meanwhile, Fannie Mae and Freddie Mac posted a more subdued 26.2 percent increase in privately-insured loan volume. California remained the biggest mortgage market for the FHA, VA and private MIs, as well as uninsured mortgages. The FHA clearly won the mortgage insurance battle, boosting its share of insured loans in the Golden State from 41.1 percent in 2014 to 49.2 percent last year thanks to a whopping 89.8 percent jump in business. California had one of the highest concentrations of ... [ 3 charts ]
Ginnie Mae securitization of rural home loans declined in 2015 as securitization volume in the segment fell in the fourth quarter, according to an Inside FHA/VA Lending analysis of Ginnie Mae data. A total of $18.1 billion in USDA loans were securitized in 2015, with the top five issuers accounting for $10.2 billion delivered into Ginnie (based on numbers below) MBS pools. Some $4.5 billion of MBS backed by rural home loans with the U.S. Department of Agriculture guarantee were issued in the fourth quarter, down 12.5 percent from the previous quarter. USDA MBS issuance also dropped 9.0 percent in 2015 from 2014 volume levels, with all of the top five issuers losing ground year-over-year as well as in the fourth quarter. Chase Home Finance remained the top issuer of securitized rural home loans, accounting for $5.6 billion in Ginnie MBS issuances last year. Second-place Wells Fargo, ... [ 1 chart ]
Private mortgage insurers have announced changes in their premium rate structure to make their pricing more risk-based. The question is would this drive borrowers with lower credit scores toward FHA? Lenders say that while the private MI rate changes appear to make it more expensive for borrowers with lower credit scores to obtain a conventional mortgage, FHA’s life-of-loan policy could also cost borrowers more in the end. Analysts, too, are confident that private MI risk-adjusted pricing will not have any significant impact on FHA, positive or otherwise. Six private mortgage insurers have updated their premium rate cards in keeping with the new capital requirements under the government-sponsored enterprises’ Private Mortgage Insurer Eligibility Requirements (PMIERs) that were implemented in January 2016. The proposed rate changes are subject to ...
A clause in a New York home-purchase contract excluding government-backed financing from seller consideration is raising potential disparate impact concerns. A residential-lending manager in Sarasota, FL, emailed Inside FHA/VA Lending a copy of the contract with the controversial language embedded in Section 8 under the heading “Mortgage Commitment Contingency.” The paragraph read in part, “… institutional lender agrees to make a first loan other than a VA, FHA or other governmentally insured loan, to purchaser …”. “The language makes clear that no government-backed loans such as VA, FHA or USDA are acceptable to the seller [of the property],” the lender, who requested anonymity, said. “It is pretty rampant as cash is king and no one on the selling side wants to wait for payment.” Apparently, such clauses are nothing new. In fact, they have been around for ...
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