The FHA and VA reached a milestone of sorts in the second quarter of 2017 when both agencies hit their lowest delinquency levels in as many years, according to the Mortgage Bankers Association’s quarterly survey of mortgage delinquencies nationwide. The FHA delinquency rate fell to 7.94 percent from 8.09 percent in the first quarter on a seasonally adjusted basis, reaching its lowest level since 1996. Also on a seasonally adjusted basis, the VA delinquency rate declined to 3.72 percent from 3.90 percent in the previous quarter, the lowest it has been since 1979. Mortgage delinquencies also decreased for conventional loans on a seasonally adjusted basis. It dropped to 3.47 percent from 4.04 percent in the first quarter on a seasonally adjusted basis. Overall, the delinquency rate for mortgage loans on single-family residential homes fell to a seasonally adjusted rate of 4.24 percent of all ...
As Hurricane Harvey’s floodwaters recede, federal agencies that provide guarantees on mortgages are faced with the daunting task of identifying and assisting borrowers with government-backed mortgages in disaster-stricken areas of Texas. FHA, VA, the U.S. Department of Agriculture’s Rural Housing Service and Ginnie Mae have issued special relief guidance for approved lenders following Hurricane Harvey. The FHA has issued guidance to remind lenders and servicers that FHA-insured mortgages secured by properties in a presidentially-declared major disaster area are subject to a 90-day moratorium on foreclosures following a natural disaster. FHA also provides lenders an automatic 90-day extension upon expiration of the moratorium to begin or re-start foreclosure action or evaluate the borrower’s need for loss mitigation. In addition, FHA urged servicers to brush up on the 203(h) and the ...
The FHA has posted a quick-reference sheet on its website to help lenders navigate the agency’s new Loan Review System. The quick-reference sheet summarizes the most important information in the LRS user manual. The LRS is an electronic platform for single-family, quality-control processes that includes post-endorsement loan reviews, direct endorsement authority test cases, lender-monitoring reviews, and lender-self-reporting of fraud and other material findings. Defect taxonomy, a key LRS component, provides a streamlined method of identifying and capturing information about loan defects uncovered through individual loan reviews. Lenders have four opportunities to respond to FHA reviews. They may access the LRS to view the results of the review in detail but they may not edit or submit responses, upload documents, manage binder requests or create self-reports. When FHA requests a ...
Late last year, IBM bought Ludwig’s Promontory Financial Services advisory firm, but the former OCC chief kept two divisions: Promontory MortgagePath LLC and Promontory Interfinancial.
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