Jumbo mortgages accounted for 20.3 percent of total first-lien originations in the first quarter of 2016, according to estimates by Inside Nonconforming Markets. While jumbo production declined slightly in the first quarter compared with the previous period, overall originations posted a steeper drop. An estimated $77.0 billion in jumbos were originated in the first quarter of 2016, down 1.3 percent from the previous quarter and up by 6.9 percent compared with ... [Includes one data chart]

At $1.661 trillion, it’s a new record in terms of banks and MBS holdings…

The groups stress that the conservatorships were intended to be a short-term measure to keep the GSEs solvent…

The OIG’s investigations also include matters tied to loan origination and short sale fraud and even REO…

First-time buyers tend to target homes with lower prices, which have been in particularly short supply recently.

Helpful CFPB mortgage audit tip: Set aside a parking space for the visiting CFPB examiner(s) that says, “Welcome, CFPB…”

Portfolio lending remains a more viable option than securitization for lenders in the non-agency mortgage market in part because of the depth and variety of funding sources that allow them to offer a wide range of products. Depository institutions rely heavily on low-cost retail deposits to fund their retained mortgage portfolios, according to panelists speaking at the Mortgage Bankers Association secondary market conference in New York this week. A typical customer of ...

FHA activity was lackluster in the first three months of 2016 as loan originations fell 7.8 percent from the prior quarter, according to Inside FHA/VA Lending’s analysis of agency data. The weak first-quarter production of $53.5 billion appeared to continue a trend from 2015, which saw the fourth quarter close with $58.1 billion, down significantly from $73.7 billion in the third quarter. In contrast, FHA originations fared better year-over year. Loan production was up 35.6 percent in the first quarter compared to the same period last year. Purchase lending totaled $36.5 billion in the first three months with overall production trending downward during the period. Borrowers in the 640-679 and 680-719 credit score ranges made up the bulk of new endorsements for January and February, the latest FHA data show. It is unlikely that trend will change even if March endorsements were added. Between all ... [ 2 charts ]

The FHA has proposed to codify key improvements to the Home Equity Conversion Mortgage program and add new protections to senior homeowners to ensure they can remain in their homes and enjoy the benefits of an FHA-insured reverse mortgage. The proposed new HECM consumer protections include full disclosure of all HECM loan products and features. Lifetime interest rate increases on HECM adjustable-rate mortgages would be capped at 5 percent, while annual interest-rate increases on HECM ARMs would be limited to 1 percent. Lenders would be required to pay the HECM’s mortgage insurance premiums until the loan is paid in full, foreclosed on, or a deed-in-lieu of foreclosure is executed. In addition, the rule proposes to amend the definition of “expected average mortgage interest rate” to allow lenders, with the agreement of the borrower, to lock-in the rate prior to ...

There is widespread frustration among FHA appraisers regarding the scope of service they are now required to provide under the Department of Housing and Urban Development’s newly revised single-family policy handbook. While the new handbook brought more clarity to FHA’s lending and underwriting policies, certain changes to property-valuation rules appear to have added home inspection to appraisal work – and appraisers and real estate professionals are not pleased. Many of the so-called changes in the handbook already existed, but one change that stood out is the word “must,” said Martin Wagar, a certified broker/appraiser and president of Wagar & Associates. Appraisers are now required to know the basic appliances that come with the home, how to operate them, and to identify and report any deficiency that may affect their “contributory value” to the property, said Wagar at a ...