The FHA has discovered glitches in FHA Connection and in the Home Equity Conversion Mortgage calculation software, which are creating problems for HECM lenders. A bad field edit in FHA Connection is preventing mortgagees from completing their on-screen financial assessment update on HECMs with negative residual income. This hinders submission of reverse-mortgage transactions to FHA for insurance. The FHA has issued temporary procedures that include instructions on submitting a request for a waiver of penalties for late payment of mortgage insurance premiums on closed loans. The agency was also alerted to a second technical problem following the release of the HECM Calculator, Version 2.2. The software incorrectly defaults, in some cases, to the 2.5 mortgage insurance premium rate when a value is entered in the Cash from Borrower and Cash from Lender fields. The FHA is also issuing ...

Alt A mortgages accounted for 31.3 percent of the credit losses the GSE took through two quarters in 2015.

In a recent SEC filing Two Harbors noted that after the second quarter ended it bought $4.7 billion of Fannie Mae servicing rights from an undisclosed seller.

Purchase-mortgage lending provided most of the oomph that drove the 23.6 percent increase in total mortgage originations during the second quarter, but refinance activity still accounted for slightly over half of total production. Lenders funded $222 billion of first-lien purchase mortgages during the second quarter, a 59.7 percent increase from the first three months of 2015, according to Inside Mortgage Finance estimates. That was just shy of the $223 billion of purchase mortgages originated back in the third quarter of 2013, a figure that included some second-mortgage production associated with purchase loans. Meanwhile, refinance lending rose...[Includes three data tables]

NYCB Mortgage and George Mason Mortgage are once again top contributors to the REIT's jumbo deals...

The rating service predicted that in the coming months, more lenders will be willing to offer non-QMs that allow for debt-to-income ratios above 50 percent and credit scores as low as 620.

The top five jumbo MBS servicers handle 83.3 percent of the loans, with Cenlar alone claiming a 38.4 percent share.

The FHFA has the authority to require the GSEs to buy chattel loans for manufactured housing, but it decided not to exercise this option...

“The most common example is a loan program for self-employed borrowers that relies on bank statements, rather than tax returns, to determine income,” Fitch said.

The U.S. Court of Appeals for the Eighth Circuit this week affirmed rulings from lower courts, noting that the “change in terms” agreement between Lapides and the lender was unenforceable.