The first-quarter decline in FHA jumbo production spilled over into the second quarter as volume dropped another 21.7 percent, ending the first half of the year with $4.7 billion in new government-insured jumbo loans, according to an Inside FHA Lending analysis of agency snapshot data. On a year-over-year basis, volume fell 56.7 percent over the six-month period compared to the same period last year. Jumbo loans make up a tiny percentage of FHA’s overall portfolio. The FHA has been weaning itself away from jumbos after Republican members of Congress accused the agency of straying from its mission by subsidizing purchases of million-dollar houses. A statutory readjustment this year brought the FHA loan limit in high-cost areas down to $625,500, the same level as the high-cost loan limits for conforming mortgages in high-cost areas. The baseline loan limits for both conforming and FHA loans in 2014 ... [1 chart]

FHA single-family loan production picked up in the second quarter thanks to a surge in fixed-rate mortgage lending, according to an Inside FHA Lending analysis of agency data. A 15.2 percent increase in FHA fixed-rate volume helped propel overall FHA originations in the second quarter, which rose 16.0 percent from the first quarter. Adjustable-rate lending also was up 32.3 percent over the same period. FHA purchase originations increased 20.6 percent, while FHA-insured refinances rose by only 4.3 percent. On the other hand, conforming-to-FHA refinances were down 4.5 percent from the first quarter. FHA baseline lending (below $417,000) saw volume rise 17.6 percent, while FHA-jumbo loan amounts up to the statutory high-cost loan limit increased by 6.2 percent. On the other hand, the volume of jumbos exceeding ... [1 chart]

Capital standards for nonbank mortgage firms is inevitable. But what should the requirement be?

“If g-fee increases were being used to build up enterprise reserves, instead of being swept under the Treasury agreement, we would be more open to such increases,” said the CHLA.

Lenders financed $11.9 billion of conforming-jumbo mortgages – loans greater than $417,000 – through Fannie, Freddie and the FHA during the second quarter.

“Our intention is to be a top tier lender,” said Newman.

The Federal Housing Finance Agency appears to be all alone – for now – in its effort to prevent nonbanks from gaining access to the Federal Home Loan Bank system by using a captive insurance affiliate. The proposal would also change FHLBank membership rules for depository institutions. But already the proposed ban – issued for a 60-day comment period early last week – is coming under heavy fire from different factions of the mortgage industry, including the Council of Federal Home Loan Banks, real estate investment trusts and private-equity firms that own REIT stock. David Jeffers, executive vice president for the Council, said “widespread calls” for the comment period to be extended are...

Altisource Portfolio Solutions has rolled out a new operating platform for brokers, table funders and third-party vendors.

Wells and JPMorgan Chase are no longer the dominant forces they once were in warehouse lending, ceding market share to more nimble bankers...

"Wellington's going to do what Wellington's going to do," said one observer of the stock sale.