The volume of home loans with private mortgage insurance that were securitized by Fannie Mae and Freddie Mac dropped 17.1 percent from the third to the fourth quarter of last year, according to a new Inside Mortgage Finance analysis and ranking. That’s not so bad, given that total mortgage-backed securities production by the two government-sponsored enterprises was down 19.9 percent during the last three months of 2015. The GSEs securitized ... [Includes two data charts]

Radian Guaranty became the first among seven private mortgage insurers to declare compliance with the regulatory capital standards under the Private Mortgage Insurer Eligibility Requirements (PMIERs), while other MIs expressed confidence they will meet those same requirements. Radian met its PMIERs goals after receiving $325 million in cash and marketable securities from its parent Radian Group in exchange for a surplus note. In addition, the parent firm contributed $50 million to an exclusive affiliated reinsurer of Radian Guaranty. Radian Group expects...

The Department of Veterans Affairs has announced its loan limits for 2016, which are the same as the loan limits set by the Federal Housing Finance Agency for Fannie Mae and Freddie Mac this year. Currently, the VA’s maximum guaranty amounts are indexed to the FHFA loan limits, which range from a base of $417,000 to a high-cost area limit of $625,500. The FHFA conforming loan limit will remain unchanged at $417,000 for single-family homes, effective Jan. 1, 2016, to Dec. 31, 2016. However, in 39 counties deemed “high cost,” the conforming loan limits will increase this year. VA loan limits are calculated based on the county median home values reported by FHA. The maximum guaranty amount for loans over $144,000 is 25 percent of the current VA county loan limit. Veterans with full entitlement available may borrow up to this limit and VA will guarantee 25 percent of the loan amount. In addition, the VA county limits ...

Approximately $191.8 billion in FHA-insured mortgage loans were securitized during the first nine months of 2015, surpassing the $158.1 billion of FHA loans that were placed in Ginnie Mae pools last year, agency loan-level data show. Securitized FHA purchase loans accounted for $111.7 billion of Ginnie Mae mortgage-backed securities issued over the same period. FHA refinance securitization totaled $66.8 billion. Modified FHA loans were also included in Ginnie MBS totals. The FHA loans in Ginnie MBS had an average loan-to-value ratio of 92.9 percent and an average FICO score of 677.5 percent, reflecting the single-family program’s traditional borrower base. The loans had an average debt-to-income ratio of 39.8 percent. FHA loans accounted for 19.8 percent of loans that underlie Fannie Mae, Freddie Mac and Ginnie Mae MBS. On the other hand, the same loans accounted for 41.2 percent of insured loans in ... [ 1 chart ]

An Urban Institute analysis echoed observations in the FY 2015 actuarial audit of the FHA Mutual Mortgage Insurance Fund, calling for the separation of the highly volatile reverse mortgage portfolio from the fund. Assessing the performances of the larger forward mortgage portfolio and the smaller Home Equity Conversion Mortgage portfolio when determining FHA’s financial status results in an inaccurate picture, warned Laurie Goodman, director of the institute’s Housing Finance Policy Center. Including the highly unstable, unpredictable HECM business in FHA’s solvency calculation severely distorts the fund’s true financial condition, she said. Goodman’s dire warning puts a damper on the actuarial audit, which, for the first time since 2009, reported the fund’s capital ratio over the 2.0 percent statutory threshold, up from 0.41 percent in FY 2014 and a year earlier than projected in the ...

A coalition of financial services trade groups expressed support for the permanent extension of the one-year protection from foreclosure for service members who have just left the military. The provision under the Servicemembers Civil Relief Act will expire at the end of 2015 and revert to the original 90-day protection unless extended by legislation. Eight industry trade organizations in a joint letter urged House lawmakers to extend the provision through 2016 if they cannot make it permanent. Some service members continue to face financial hardship upon returning to civilian life, the groups noted. Slow recoveries in real-estate markets in certain areas of the country, particularly those around military bases, make it difficult for those retiring or opting out after their tour of duty is up to sell their houses. The protection becomes effective on the date the service member is ...

The House Financial Services Committee this week passed H.R. 3700, the “Housing Opportunities Through Modernization Act,” moving forward reform measures that would make it easier for condominium investors to obtain FHA financing. Sponsored by Rep. Blaine Luetkemeyer, R-MO, chairman of the House Financial Services subcommittee on Housing and Insurance, and Rep. Emanuel Cleaver, D-MO, the bill passed with a bipartisan vote of 44-10. Among other things, the bill would ease FHA’s restrictions on the purchase and sale of condo units. It includes changes to the certification and recertification process, owner/occupancy ratio, commercial space requirements and private transfer fees. Specifically, H.R. 3700 would require the streamlining of the FHA condo recertification process by considering a longer time period before a condo project recertifies. Currently, certification is ...

Morningstar Credit Ratings proposed new criteria this week to rate residential MBS. The rating service published similar criteria in May but Morningstar has only rated one deal backed by new residential mortgages since then. The biggest addition in the proposed criteria details how Morningstar plans to handle transactions that include primary mortgage insurance. The provision could help Morningstar rate risk-sharing transactions from the government-sponsored enterprises. The rating service said...

Most mortgage lenders reported a significant uptick in purchase-mortgage originations during the third quarter of 2015, though there is little sign that originators are lowering credit standards to stimulate more business. According to revised estimates by Inside Mortgage Finance, purchase-mortgage originations climbed 10.7 percent from the second to the third quarter of this year, hitting $280 billion. At that level, the purchase market was the strongest it has been since the third quarter of 2007. At the same time, credit standards – at least in the agency market – have eased...[Includes two data tables]