Excessive risk-based pricing, high private mortgage insurance premiums and lender credit overlays are locking out low-income borrowers and families of color from the conventional mortgage market, pushing them towards FHA as their only option, concludes a new study from the Center for Responsible Lending.
Freddie Mac Announces $497M SLST. Freddie Mac announced an approximately $497 million Seasoned Loan Structured Transaction of seasoned re-performing loans from its mortgage-related investments portfolio.This will be the fourth SLST since the launch of the program in 2016 and the first SLST of 2018. It also marks the first time a Freddie-created trust will be the issuer of the SLST securitization. OIG Says FHFA Complied with Statutory Improper Payment Requirements. The Federal Housing Finance Agency Office of Inspector General noted in an April 26 audit that the FHFA complied with applicable improper payment requirements during fiscal year 2017. The auditor reviewed several...
A ranking of primary mortgage insurance for purchase mortgages by state in the first quarter of 2018. Includes private mortgage insurance, FHA, VA and USDA Rural Housing.
Along with nearly all mortgage indicators, the flow of insured home loans into agency mortgage-backed securities slowed significantly during the first quarter of 2018, but early indicators suggest the FHA market may have been somewhat more resilient. [Includes three data charts.]
Issuance of new single-family Ginnie Mae mortgage-backed securities fell sharply in the first quarter of 2018, according to a new Inside FHA/VA Lending ranking and analysis. The agency issued $92.58 billion in MBS backed by forward mortgages during the first three months of 2018. That was down 14.8 percent from the previous three-month period and represented the lowest quarterly total since early 2015. The 1Q figure is based on truncated loan amounts reported in Ginnie’s loan-level MBS disclosures. Reports with unrounded single-family loan amounts show a total of $95.75 billion in first-quarter MBS issuance, including FHA reverse mortgages. The loan-level data reveal that production fell 6.9 percent from February to March, when just $28.21 billion of Ginnie single-family securities were issued. That was the lowest monthly volume since February 2015. Both the FHA and VA programs saw significant ... [Charts]
FHA streamline refinancing fell significantly in 2017 from the previous year, according to an Inside FHA/VA Lending analysis of agency data. Lenders closed 2017 with $37.4 billion of FHA streamline refi loans, buoyed by a 12.2 percent increase in origination in the fourth quarter. However, business was down a whopping 34.5 percent year-over-year. The segment ended the first quarter strongly with, $13.05 billion, but faltered over the next nine months. Streamline refinancing accounted for 15.8 percent of total FHA originations in 2017. Twelve states, led by California, each reported FHA streamline refi originations in excess of $1 billion last year. The Golden State closed the year with $8.05 billion of FHA-to-FHA refis, which accounted for 21 percent of all FHA loans in the state last year. The highest FHA streamline refi-producers after California were, in sequential order, ... [Charts]
A Department of Housing and Urban Development requirement for a face-to-face meeting has become quite a compliance challenge for lenders seeking mortgage foreclosure, according to legal experts. In Dan-Harry v. PNC Bank, a federal court in Rhode Island concluded that a borrower may bring a claim for damages and other remedies against a lender for failure to conduct a pre-foreclosure face-to-face meeting with the borrower – a requirement for breach of an FHA-insured mortgage. In an analysis of the court’s ruling, attorneys at the Chicago law firm Hinshaw & Culbertson said the decision is significant because the HUD regulation provides no private right of action. In addition, Rhode Island law does not recognize a cause of action for breach of good faith and reasonable diligence in foreclosure, they noted. Nevertheless, the legal experts pointed out that Rhode Island federal courts effectively ...
There was a significant increase in deliveries to the GSEs of home loans with high debt-to-income ratios during the second half of 2017, according to a new Inside The GSEs analysis of Fannie Mae and Freddie Mac single-family mortgage-backed securities.The two GSEs securitized $52.90 billion of mortgages with DTI ratios ranging from 46 percent to 50 percent over the last six months of the year. That was up 72.6 percent from the first half of 2017, and the annual total was up 37.6 percent from 2016.
Legislation that would protect veterans from predatory lending that was passed by the Senate recently could have lasting impacts on the VA home-loan guaranty program, according to legal experts. S. 2155, the Economic Growth, Regulatory Relief and Consumer Protection Act, passed on March 14 by a vote of 67-31. Sixteen Democrats and one Independent joined all 50 Republicans in passing the bill. Primarily, the bill would loosen stringent rules in the 2010 Dodd-Frank Act designed to prevent the bad business practices that led to the 2008 financial crisis. A stand-alone bipartisan bill introduced by Sens. Thom Tillis, R-NC, and Elizabeth Warren, D-MA, in January was added to S. 2155 shortly before the Senate vote. The Tillis-Warren bill, Protecting Veterans from Predatory Lending Act of 2018, addresses the issue of serial refinancing, or loan churning, in which the victims are veterans. Churning refers to the ...
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