The securitization rate for adjustable-rate mortgages has declined significantly in the past year, according to an analysis by Inside Nonconforming Markets. Some 11.4 percent of ARMs originated in the first quarter of 2016 were included in mortgage-backed securities, down from 20.1 percent in the first quarter of 2015. When ARMs make it into MBS, it’s generally in securities from Fannie Mae, Freddie Mac and Ginnie Mae. The vast majority of non-agency ... [Includes two data charts]

EverBank Financial announced this week that it’s in “advanced discussions” with a “well-respected financial services company” that plans to acquire the depository. Everbank ranked 15th among jumbo lenders as of the first quarter of 2016 with $725.0 million in such originations during the quarter, according to Inside Nonconforming Markets. The company formerly known as NovaStar filed for Chapter 11 bankruptcy last week, citing ... [Includes four briefs]

Despite quickening refinance activity, the FHA single-family market soared over the $1 trillion mark in loans pooled in Ginnie Mae mortgage-backed securities during the second quarter of 2016, according to a new Inside FHA/VA Lending analysis. A record $1.001 trillion of FHA single-family loans made up the lion’s share of collateral backing Ginnie MBS as of the end of June. That was a 1.3 percent increase from the previous quarter and a 5.5 percent gain from the midway point in 2015. Steady growth in FHA loans helped push Ginnie single-family MBS to $1.576 trillion outstanding, topping Freddie Mac for second place in the agency market. The VA loan guaranty program was still the fastest-growing corner of the government-insured market, with total VA loans in Ginnie pools up 3.8 percent from March and 16.7 percent higher than a year ago. The actual amount of FHA and VA loans outstanding is somewhat ... [ 4 charts ]

The FHA and VA are expanding their guarantees to residential properties with superior PACE (Property Assessed Clean Energy) liens, but certain clarifications must be made before the market will really open up, according to legal experts. Under newly issued guidance, the FHA and the VA will begin insuring mortgages on qualified residential properties encumbered by PACE liens in support of a White House initiative to make clean energy and energy upgrades available to low- and moderate-income homeowners. PACE programs are available in 19 states and in the District of Columbia and have enabling legislation in 32 states, plus Washington, DC. Such programs provide financing for home improvements that enable homeowners to make energy and water use more efficient and less costly. The financing, however, is not like a traditional loan product. Homeowners repay the PACE financing through a ...

Senate legislation that would make it easier to obtain FHA financing for condominium projects has been sent to the president for signature, though lenders seem to be more eager for long-anticipated condo reform guidelines from the Department of Housing and Urban Development. Senate lawmakers unanimously approved H.R. 3700, the “Housing Opportunity through Modernization Act,” before Congress retired for the August recess. The bill passed in the House of Representatives by a vote of 427-0 back in February. Industry observers said the bill would essentially codify FHA condo-financing guidelines, which HUD recently drafted and are currently undergoing clearance at the Office of Management and Budget. Under H.R. 3700, the FHA would be required to establish and implement a recertification process that is substantially less burdensome than the ...

CIT Group this week revealed that it was shoring up loss reserves tied to a reverse mortgage servicing operation it absorbed as part of its acquisition of OneWest Bank and its parent holding company, IMB HoldCo., last August. The loss of $167 million in discontinued operations relates to Financial Freedom, a reverse mortgage servicing subsidiary of OneWest Bank, which CIT shut down in December last year. In an earlier filing with the Securities and Exchange Commission, CIT management identified a material weakness in Financial Freedom related to estimates of the interest-curtailment reserve in its Home Equity Conversion Mortgage portfolio. The flawed estimates apparently have resulted in a material misstatement of CIT’s consolidated financial statements. Due to a change in estimates, and taking into consideration an investigation being conducted by the ...

The Department of Housing and Urban Development will look into certain downpayment-assistance practices that the department’s inspector general alleged are improper or unlawful. In a recent note to FHA lenders, FHA Commissioner Ed Golding said HUD would look into any inappropriate practices, including the extent to which government-sponsored downpayment-assistance programs disclose loan terms to borrowers. In addition, HUD will investigate IG allegations of inappropriate fees or costs being charged to borrowers, as well as reports of steering and coercion of borrowers, said Golding. In the note, Golding reiterated HUD’s support for government-backed DPA programs that enable families to access credit for purchasing homes. The note also carried a statement from HUD Deputy Secretary Nina Coloretti, which reiterated the department’s support for government-backed DPA programs. Coloretti also clarified a memorandum on DPA issued by Golding back in May, which, she said, “may have been misinterpreted by some to endorse otherwise unlawful practices.” She said HUD does not endorse such practices.

The CFPB went on to say its proposal does not – and cannot – address every concern that has been brought to the agency’s attention since the rule first came out.

Unverified funds and undocumented deposits are the leading causes of high initial unacceptable findings in a post-endorsement review of a sampling of FHA-insured loans, according to the Department of Housing and Urban Development. Source-of-fund issues were found in 9.8 percent of FHA loans in the first quarter of 2016, up from 9.0 percent in the fourth quarter of 2015. The percentage of loans with such problems fell to 2.0 percent after going through loss mitigation. Specifically, auditors either found undocumented large deposits or deposits that are from unacceptable sources. In addition, auditors found loans in which borrower funds fell short of the minimum investment requirement or actual funds to close an FHA loan. Inadequate borrower funds or reserves were also found in certain loans that were run through the TOTAL Scorecard, invalidating them for FHA approval. The ...

We pick up where we left off last issue with the Department of Veterans Affairs attempting to clarify certain guidance in the VA Lender Handbook. ? If the TRID (Truth in Lending/Real Estate Settlement Procedures Act Integrated Disclosures) closing disclosures change after the veteran signs [the form], should the lender require the veteran to sign it again? VA: The short answer is yes. The lender is required to provide the TRID closing disclosure no later than three business days before consummation. The lender is required to provide a corrected closing disclosure to the borrower three days before consummation or closing in certain instances, and at or before consummation if other types of changes occur, such as adjustment of costs or credits. Therefore, any changes made that require an amended disclosure must have the borrower’s signature. ? Is the Amendatory Clause mandatory for all ...