The streamlined short sale programs announced last summer by Fannie Mae and Freddie Mac received an extra boost from mortgage insurers as the programs took effect Nov 1.The GSEs this week announced signed delegation agreements with nine private mortgage insurance companies to allow Fannie and Freddie servicers to complete short sales and deeds-in-lieu without seeking approval from the MI.

Mortgage lenders reported solid increases in loan originations during the third quarter of 2012, leading to a surge in securitization activity at Fannie Mae and Freddie Mac. Single-family mortgage originations totaled $475.0 billion during the third quarter, according to a new Inside Mortgage Finance analysis. That was up 9.2 percent from the second quarter of the year and marked the highest quarterly origination volume since the end of 2010, when an earlier refi surge pushed production to $520.0 billion. The strong third quarter suggests...[Includes two data charts]

Officials at National Mortgage Insurance say a state-of-the-art business platform and a somewhat old-school approach to writing private MI will help the company establish a beachhead in an industry that’s seen three long-time players washed out to sea by the housing market collapse. National MI hopes to have its Fannie Mae and Freddie Mac approvals within the next few months, and it’s made significant headway in lining up state approvals, officials say. In June, the new private MI was approved for an accelerated licensing process that allows it to seek multiple state licenses on a streamlined basis. The private MI industry has seen...

The use of conventional conforming mortgages in the home purchase market, which fell to the lowest level in more than a decade last year, is staging a comeback in 2012. A combination of events – particularly increased home buying by higher-income current homeowners and more attractive pricing for higher loan-to-value ratio conventional financing – appears to be fueling the growth. Perhaps the most visible sign of the growth in the conventional side of the home purchase market can be found in Fannie Mae’s and Freddie Mac’s latest mortgage activity numbers. According to data compiled by Inside Mortgage Finance, the combined home purchase mortgage business of Fannie and Freddie climbed to $77.6 billion in the third quarter of this year. That was not only up 33.6 percent from the second quarter’s volume, but put...

FHA loan originations, driven largely by streamline refinancing, increased 5.3 percent to $60.9 billion in the third quarter of this year, the highest level it has been in almost two years, according to Inside FHA Lending’s latest analysis of FHA data. The third-quarter volume reflected an upward trend that began in the first quarter with nearly $48.5 billion in total FHA single-family production and which later rose to $57.8 billion in the second quarter. The last highest point in FHA production was in the fourth quarter of 2010 when ... (2 charts)

New pool level data issued by Ginnie Mae reveal a rising share of FHA-insured loans that have refinanced with grandfathered mortgage insurance premiums (MIP) in new Ginnie Mae mortgage-backed securities issuances, according to analysts. Of particular interest to investors is the share of borrowers with existing FHA-insured home loans who took advantage of an opportunity to refinance on advantageous terms under the FHA Streamline Refinance program, said analysts at Bank of America Merrill Lynch. Under the revised rules of the FHA Streamline Refi program, FHA-insured mortgages endorsed before June 1, 2009, were ...

The Department of Housing and Urban Development is mulling a recommendation by its Inspector General to consider indemnifications, civil fines or remedies under the False Claims Act against an approved California lender for allowing the recording of restrictive covenants that put the FHA insurance fund at risk for losses. The IG audit report also recommended that HUD require the lender, Shea Mortgage of Aliso Viejo, CA, to reimburse the FHA for $1.47 million in claims paid on 11 FHA-insured loans that contained prohibited restrictive covenants. Under HUD rules, any recorded agreement between the ...

A weakened mortgage revenue bond market and the unreliability of its primary and pool credit enhancement structure has prompted the Wisconsin Housing and Economic Development Agency to turn to FHA and Ginnie Mae to finance its affordable housing program. Launched in December last year, WHEDA’s $100 million FHA Advantage program is still in its infancy, generating less than $1 million a month. Although marketing has not been aggressive as it should be, Geoff Cooper, WHEDA director of single-family operations, said the housing finance agency will soon announce ...

Legislation that would delay foreclosures on mortgages of certain military servicemembers, retirees and surviving spouses of soldiers and sailors who died on active duty would cost taxpayers more to enact and implement rather than as a revenue raiser, according to Congressional Budget Office. The CBO estimates that enacting S. 3322, the Servicemembers’ Protection Act of 2012, would increase direct spending by $16 million over the 2013-2022 period. Implementing it would hike discretionary costs by ...

A nonsupervised Arizona FHA lender whose high default and claims rate triggered a supervisory audit earlier found itself in a deeper mess for improper underwriting on a number of FHA streamline refinanced loans that resulted in losses to the FHA insurance fund. The Department of Housing and Urban Development’s Inspector General found that Allen Mortgage of Centennial Park, AZ, violated HUD’s regulations , procedures, and instructions in the underwriting of FHA-insured loans. Specifically, of the 73 streamlined refinance mortgage loans reviewed by the IG, 23 were ...