An announced 10 basis-point hike in the FHA mortgage insurance premium (MIP) may bolster the health of the FHA Mutual Mortgage Insurance Fund and speed up shrinkage of FHA market share, but it will also make FHA-insured loans costlier for borrowers. The increase is the latest in a series of premium hikes imposed by the Department of Housing and Urban Development in the past three years to strengthen the MMI Fund’s capital reserves, which lately have fallen to a negative position. Simultaneously, HUD announced other measures to ... [1 chart]

Although unhappy about the demise of the popular, fixed-rate, standard Home Equity Conversion Mortgage, loan officers are not worried about any long-term adverse effect on their FHA businesses. In fact, members of the National Reverse Mortgage Lenders Association, support the FHA’s decision, which is a part of a broad effort to strengthen and better manage the risk of the agency’s Mutual Mortgage Insurance Fund. They said they have other HECM products to offer in lieu of the standard HECM loan. Beginning April 1, borrowers who choose a fixed interest rate will be limited to ...

The Federal Housing Finance Agency is concerned about large scale transfers of mortgage servicing rights.

Nationstar sets a target goal of amassing $500 billion of mortgage servicing rights.

Wells Fargo remained the top mortgage servicer in the industry at the end of 2012, but the company posted a rare decline in its portfolio during the fourth quarter and is reportedly considering selling some of its massive $1.873 trillion portfolio. A new Inside Mortgage Finance ranking and analysis of the servicing market underscores the gains made in market share by a handful of nonbanks and some regional banks, while some of the top servicers continue to pare their businesses. The servicing industry faces a significant challenge in that increased regulatory requirements are raising operational costs at a time when the overall market continues to decline. On the upside, much of the damage from the housing recession has already occurred...[Includes one data chart]

Morgan Stanley recently increased its ownership stake in Fortress which in turn controls a large block of Nationstar stock.

Lawmakers worry about FHA's financial condition during Wednesday hearing.

First Guaranty is experiencing strong growth in its servicing business. Meanwhile, lenders worry about higher net worth requirements from the GSEs.

Fannie Mae and Freddie Mac have developed a prototype of its standard securitization platform.

FHA is looking at $133 billion of troubled mortgages.