Low interest rates have pushed FHA prepayments to 34 percent above actual predictions while claim payments are 24 percent below predicted levels in 2014, according to the agency’s most recent quarterly report to Congress. Actual loss rates of 47.43 percent remained below the actuarially projected 54.65 percent, the report showed. Meanwhile, the Mutual Mortgage Insurance Fund account balances totaled $46.2 billion in the fourth quarter, no change from the previous quarter ...
“The greater comfort that banks have in the current regulatory environment has situated them as more potential buyers of mortgage servicing product than was the case several years ago,” Fitch Ratings said.