VA loan volume continued to rise in the fourth quarter of 2014, driven by low interest rates and a strong demand for the lower downpayment loans, according to an Inside FHA Lending analysis of Ginnie Mae/VA data. The volume of VA loans securitized in Ginnie Mae mortgage-backed securities rose 4.0 percent in the fourth quarter to $107.8 billion from the previous quarter, with more than half of the loans coming through the retail channel. Retailers accounted for $51.5 billion in VA loans securitized during the quarter while correspondents and brokers accounted for $44.4 billion and $11.9 billion, respectively. The overall average FICO score for VA loans was 707, with average loan-to-value and debt-to-income ratios of 95.0 percent and 38.2 percent, respectively, during the quarter. Correspondents came up big with VA purchase loans, accounting for $31.7 billion of the $65.1 billion in total purchase loans produced during the fourth quarter. Retail loan officers accounted for $28.5 billion while brokers brought in ... [ 1 chart ]

When it comes to capital cushions, 2018 is "Year Zero" for Fannie Mae and Freddie Mac.

In 2018, the GSE capital buffer falls to zero dollars. Zilch. Nada. Hopefully by then, President Bush or President Clinton will have worked out a GSE reform deal with Congress…

Disclosure of findings from third-party due diligence on MBS and ABS are set to go from a few paragraphs in a rating report to a detailed form with certification from the due diligence firm, thanks to standards established by the Securities and Exchange Commission. The standards take effect for deals that price June 15 or later. Within five days before the first sale in an offering that will receive a rating, the findings and conclusions of any third-party due diligence report obtained by the issuer or underwriter must be disclosed in Form ABS-15G or the rating report. The disclosure requirement applies to private placements along with SEC-registered deals. “Our biggest challenge now is educating...

Almost 71 percent of residential loans originated last year were funneled into mortgage securities. In 2013 the securitization rate was 78.5 percent.

Private mortgage insurers ended 2014 in better financial shape and with a stronger market position than a year earler, although new business volume fell sharply in the fourth quarter, according to a new Inside Mortgage Finance analysis and ranking. Private MIs reported $46.94 billion in new insurance written during the fourth quarter of 2014, a figure that could change slightly when National MI releases its earnings after Inside Mortgage Finance goes to press. Our estimate for the firm is based on volume trends reported by its competitors. While private MI business was down 12.5 percent in the fourth quarter, total mortgage originations fell...[Includes three data charts]

Production of loans with a Department of Veterans Affairs guaranty increased 44 percent in the fourth quarter of 2014 compared to the same period a year ago, thanks to strong refinance activity during the holidays, according to an agency spokesman. John Bell, assistant director for loan policy and valuation with the VA Home Loan Guaranty Service, said VA streamline refinance activity rose 18 percent year over year as more veterans took advantage of lower interest rates and lower downpayment in the fourth quarter. He said the VA is still in the process of collating data, declining to give further details. Nonetheless, VA production in the fourth quarter was fueled...

Warehouse commitments written by commercial banks reached approximately $33 billion at yearend, according to figures compiled by Inside Mortgage Finance – one of the healthiest readings in several quarters and a sign that all is well in the originations market. The only thing bothering most warehouse managers is how long the good times can last. “There is...[Includes one data chart]

Manna from heaven? Roughly 87 percent of LOs expect residential production to exceed 2014’s volume…