Some 231 non-agency mortgage-backed securities serviced by Nationstar Mortgage took nearly $1.0 billion in losses recently due to accounting for principal forbearance that occurred in previous years. Nationstar acquired the mortgages from Aurora Bank and said the revisions were made to remove inconsistencies in the reporting of previously forborne amounts. The revised losses follow a similar action by Ocwen Financial. Fitch Ratings said the servicers don’t anticipate similar significant ... [Includes two briefs]

The FHA has proposed measures to strengthen its oversight of FHA lenders and each measure could potentially increase lenders’ liability and compliance risk, compliance experts warned. Published for comment in the July 9 Federal Register, the proposals are part of a new enforcement regime that the FHA is considering to monitor and sanction lenders. They cover statistical sampling, origination quality standards, annual reviews, compare ratios, and indemnification and other remedies for loan defects. The proposed enforcement measures, however, raise a ...

The Department of Housing and Urban Development is adopting the mortgage banking industry’s data standards format for the FHA’s TOTAL Mortgage Scorecard, which HUD uses to evaluate the credit risk of FHA loans that are submitted through an automated underwriting system. The standards were developed by the Mortgage Industry Standard Maintenance Organization (MISMO), a nonprofit subsidiary of the Mortgage Bankers Association. MISMO is an open data standards group that promotes consistency among mortgage transaction participants to reduce loan processing costs, increase transparency, and ultimately ...

Industry response to a proposal to consolidate Ginnie Mae I and II mortgage-backed securities programs has been positive overall despite certain investor and issuer concerns, according to Ginnie Mae. In an industry update, Terry Carr, Ginnie Mae’s senior advisor of communications and Congressional relations, explained that meetings with stakeholders over the past three months have been productive. “This concept has been well-received,” she said. Ginnie Mae will soon begin developing a blueprint laying out the mechanics for converting ...

Ginnie Mae guaranteed more than $216.9 billion in mortgage-backed securities during the first half of 2013, up 18.8 percent from the same period last year. Issuance was also up 8.0 percent in the second quarter from the first quarter, according to an Inside FHA Lending analysis of Ginnie Mae data. Not surprisingly, a significant share – $132.8 billion – of Ginnie Mae MBS issuances over the six-month period were backed by FHA loans. VA accounted for $72.1 billion while Rural Housing Service loans totaled $10.5 billion. Ginnie Mae issuances dropped during the first quarter but surged in the second quarter as ... [1 chart]

The two GSEs securitized $56 billion of home loans that included private MI coverage during the second quarter, a 12 percent jump from 1Q.

In general, mortgage applications are off 25 percent from their peak. Meanwhile, a Wells Fargo employee with an NMLS number has been arrested.

The jumbo MBS market has another new issuer: Nomura. But the credit enhancement on its first deal was increased due to geographic concentration risk.

Just as with the Perry GSE litigation, Fairholme’s suit demands that the Treasury amendment to the preferred stock purchase agreement be voided.

A year ago, only two to four bidders would show up for an MSR auction. But those days are long over.