The Veterans Administration’s home loan guaranty program has racked up some serious refinance numbers in recent months, causing primary mortgage insurers to lose some market share during the first quarter of 2015, according to an Inside Mortgage Finance analysis of guarantor activity. Streamline refinance loans accounted for 59.0 percent of VA loans securitized by Ginnie Mae during the first three months, compared to just 32.8 percent of private MI loans securitized by Fannie Mae and Freddie Mac over the same period. In addition, the VA had the highest average loan size among insured mortgages in the first quarter, approximately 7.2 percent larger than the average loan with private MI. Private mortgage insurers provided coverage on $45.2 billion of mint conventional mortgages during the first quarter, down 5.3 percent from the fourth quarter of last year. VA and FHA originations also increased over the same period by 6.0 percent and 5.5 percent, respectively. FHA forward originations surged ... [1 chart ]

The VA share of total loan applications (purchase and refinancing) for the week ending May 8, remained unchanged at 11.9 percent while FHA’s share fell to 13.8 percent from 14.0 percent the week prior, according to the Mortgage Bankers Association’s latest weekly survey of applications. VA purchase loan applications were up a smidgen, 0.2 percent, for the week while FHA purchase applications were up slightly higher, 0.6 percent. Refi applications at both agencies, however, were down for the week – 11.5 percent for FHA and 5.1 percent for VA. Meanwhile, the Rural Housing Service’s share of total applications rose to 0.9 percent as of May 8, from 0.8 percent the week prior. While there was no change in RHS’ share of refi loan applications during the week, its purchase loan applications was up 8.6 percent, a hefty increase for an agency that accounts for only a ...

The FHA overall delinquency rate for single-family mortgages fell by 63 basis points to 9.10 percent on a seasonally adjusted basis in the first quarter of 2015 from the previous quarter, while VA loans recorded the only increase across all loan types over the same period, according to the Mortgage Bankers Association. Overall, mortgage delinquencies and foreclosures continued to fall in the first quarter and are now at their lowest levels since 2007, according to the MBA’s quarterly delinquency-rate survey. On a seasonally adjusted basis, the overall delinquency rate fell 14 bps to 5.54 percent from the fourth quarter of 2014, and 57 bps from one year ago, the MBA said. The serious delinquency rate – the share of mortgages that are 90 days or more past due or in foreclosure – likewise fell 28 basis points to 4.24 percent from the previous quarter and down ...

An internal audit of the FHA/Home Affordable Modification Program’s partial-claim option uncovered flaws that cost taxpayers millions of dollars in ineligible claims. According to a recent report by the Department of Housing and Urban Development’s Office of the Inspector General, HUD’s claim-payment controls were inadequate. As a result, the agency paid more than $22 million in unsupported claims and $103,925 in ineligible claims, the report concluded. Auditors said HUD did not design and implement strong safeguards to detect and prevent improper claims. Because of the flaws, the system allowed payment of more than one claim with a modification or FHA-HAMP option in a 24-month period, the report said. In addition, auditors found duplicate claims, partial claims in excess of 30 percent of the unpaid principal balance at initial default, and non-HAMP partial claims after HUD ...

Mortgage originators are foregoing lending to borrowers who are more likely to become delinquent to avoid strict and unrealistic FHA timelines and cost limits, according to an Urban Institute study. Results of the study, which was issued in December, were again highlighted during a recent Housing Finance Policy Center seminar on servicing at the Urban Institute in Washington, DC. Citing the study she wrote, Laurie Goodman, director of the HFPC, said regulatory uncertainty and a broken servicer-compensation model were partly responsible for tight credit. The high cost of servicing non-performing mortgages and regulatory uncertainty regarding the treatment of delinquent borrowers have made lenders apprehensive about making loans that have even a slight chance of defaulting, she said. Long foreclosure delays in judicial states, burdensome foreclosure guidelines and apparently ...

The Blackstone Group’s bid to acquire VA lender PMAC Mortgage, Chino Hills, CA, appears to have stalled. Talks between the two companies are now on hold and neither firm has commented. An industry source suggested that cash might not be the issue but a “clash of corporate cultures. PMAC Lending Services, which acquired Residential Financial Corp. last year, was ranked 61st on Inside FHA/VA Lending’s top 100 VA lenders in 2014. The company reported $328.2 million in total VA originations last year, reporting an 18.5 percent increase in the fourth quarter from the previous quarter and a 182.1 percent spike in loan volume year-over-year. It accounted for 0.3 percent of the VA market. Blackstone is a global investment firm with nearly $300 billion in assets under management. Last year, the company announced the hiring of 15,000 U.S. veterans across its portfolio companies in ...

The volume of new mortgage originations with primary mortgage-insurance coverage held steady during the first quarter of 2015, but there was a noticeable shift toward the government MI programs, according to a new Inside Mortgage Finance analysis and ranking. Private mortgage insurers wrote coverage on $45.24 billion of new conventional originations during the first quarter, a 5.3 percent decline from the fourth quarter of last year. But FHA and Veterans Administration loan originations were up over the same period, by 5.5 percent and 6.0 percent, respectively. Based on Ginnie Mae securitization data, the volume of new rural-housing loans insured by the Department of Agriculture fell...[Includes three data charts]

Realtors want Congress to tackle reform of the government-sponsored enterprises, but they are keenly aware of the huge difficulties facing the effort, according to participants at this week’s annual legislative conference held by the National Association of Realtors. “I think what we want to get through to people in Congress is that these [GSE] programs were designed to be around and to be effective in times of a recession and prosperity in every single section of the country. That’s what they were there to do,” said Jerry Giovaniello, NAR’s senior vice president of government affairs. He said...

FHA volume in Ginnie Mae mortgage-backed securities rebounded in April because of the agency’s price cut in late January and improvements in the economy, according to industry participants. Recent data from the FHA show a sharp uptick in refinance business, which jumped from $2.29 billion in endorsements in February to $8.15 billion in March. Total FHA forward-mortgage business rose by 83.8 percent from February. The surge came...

The agency MBS market in April had its strongest month of new issuance in 20 months thanks to the combination of strong refinance volume and a surge in purchase-mortgage lending. A new Inside MBS & ABS analysis and ranking reveals that Fannie Mae, Freddie Mac and Ginnie Mae issued a total of $121.10 billion of new single-family MBS last month, an increase of 22.1 percent from March. It marked the strongest output since August 2013, when new agency MBS was tapering off from a huge influx of refinance business. Refinance loans continued...[Includes two data charts]