Nearly all of the securitized loans which failed to meet qualified-mortgage standards that took effect in 2014 are holding up well, and the MBS credit enhancement should be enough to handle any problems that emerge in an economic downtown, according to a new report from DBRS. The credit rating service did an analysis of the collateral and performance trends associated with the 20 securitizations backed by substantial numbers of non-QM loans that have been ... [Includes one data chart]
Joshua Rosner, managing director of Graham Fisher & Co., said his discussions with Trump officials and members of Congress suggest that the administration’s reform principles won’t be released until early next year…
FHA and VA loan performance deteriorated during the third quarter of 2017, a period when the Ginnie Mae servicing market continued to expand. Ginnie had a record $1.749 trillion of single-family mortgage-backed securities outstanding at the nine-month mark in 2017, according to a new ranking and analysis by Inside FHA/VA Lending. That was up 2.2 percent from mid-year and 8.5 percent higher than September 2016. Ginnie servicing has been the fastest-growing part of the market for the past few years. That’s largely because Fannie Mae and Freddie Mac typically see more refinance business, which tends to churn the supply of servicing outstanding more than grow it. The VA side of the government-insured market again was the fastest-growing component, as the dollar volume of VA loans in Ginnie pools rose 3.7 percent during the third quarter. That was more than double the growth rate in the ... [Charts]
A Ginnie Mae/VA anti-churning task force is looking at a number of options to solve the rapid prepayment problem, which could include extending the seasoning requirement for all refinanced loans and prohibiting access to custom pools. A Ginnie representative declined to provide further details, adding that the task force is not ready to announce changes yet. “But we will take additional action soon, which we can do through program changes like we did last year,” he said. Ginnie issued guidance last year to curb aggressive refinancing of VA loans that underlie Ginnie mortgage-backed securities. The rapid refis have resulted in rapid prepayments to the detriment of investors with no clear benefits to VA borrowers. The guidance required six consecutive monthly payments before delivering a streamlined refi loan into a standard Ginnie MBS. The measure succeeded in stopping the ...
Overall denial rates for nonconventional loan applications (FHA, VA and Rural Housing Service) fell slightly in 2016 to 13.4 percent from 13.9 percent in 2015, Home Mortgage Disclosure Act data showed. In the nonconventional refinancing segment, denial rates rose to 32.9 percent last year from 30.3 percent in the previous year. Approximately 23.9 percent of FHA loan applicants were denied last year while VA turned down 20.0 percent of borrowers who sought a VA loan. An estimated 14.3 percent of FHA purchase-loan applicants were turned down. VA denied 11.4 percent of its purchase-mortgage applicants although its total purchase-loan applications are far fewer compared to FHA. According to the Federal Reserve’s overview of the 2016 HMDA data, as in past years, blacks, Hispanics and “other minority” borrowers had notably higher denial rates overall compared to white borrowers. Denial rates for ...
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