The FHA’s widespread reduction in loan limits for 2014 has had a mixed impact on production levels so far this year, according to a new Inside FHA Lending analysis of FHA endorsement data. Through the first four months of 2014, FHA endorsements were down 55.6 percent from the same period last year. But in counties where loan limits were lowered, FHA production was down 57.5 percent from early 2013. In the relatively few counties where loan limits actually increased in 2014, FHA endorsements were also down from a year ago, but by a less severe 47.4 percent. The biggest decline in endorsements has been in refinances, especially FHA-to-FHA refinances. In areas with lowered loan limits, production of these loans has plummeted 87.0 percent, and even areas with raised loan limits saw an 81.1 percent drop in streamlined refis. Purchase-mortgage originations have taken less of a ...

The delinquency rate for residential FHA-insured mortgages fell at the halfway mark of 2014 from the end of the fourth quarter last year, a result of improved overall loan performance, strong credit standards and an improving, albeit slowly, economy, an Inside FHA Lending analysis of agency data suggests. Although the number of FHA lenders included in the analysis has doubled since year-end 2013, delinquency rates in the 30-60 days and 90-day plus buckets appear to be trending downward. As of June 30, FHA delinquencies across the board were down to 13.3 percent from 15.2 percent as of Dec. 30, 2013. The seriously delinquent rate – the percentage of loans that are 90 days or more past due – has dropped to 7.14 percent from 8.08 percent over the same period. The delinquency rate of FHA loans that are at least one payment past due also fell to ... [1 chart]

Comment Period for Single Family Handbook Extended. The FHA has extended from July 29 to Aug. 15, 2014 the deadline for submitting feedback on certain sections within the draft Single Family Handbook. Comments are being sought on sections “Doing Business with FHA – FHA Lenders and Mortgagees” and “Quality Control, Oversight and compliance." Both sections’ contents, as well as supporting information, are posted for review and feedback on the SF Drafting Table in the FHA website. Each section’s web page also contains highlights of changes, frequently asked questions (FAQs) and a feedback response worksheet. Julian Castro as New HUD Secretary. Julian Castro was sworn in as the 16th Secretary of the Department of Housing and Urban Development on July 28. He replaces Shaun Donovan, who is now director of the ...

The Mortgage Bankers Association is pressing regulators and legislators for uniform national requirements for testing of loan originators. In a shift from the bank-friendly issues frequently pursued by the trade group, the MBA is calling for testing requirements that currently apply to nonbanks to be expanded to banks. “MBA believes that all consumers should know that every LO, regardless of what type of lender they work for, meets a demonstrated minimum threshold of knowledge of mortgage lending by passing a test,” the trade group said. The changes sought by the MBA would also allow...

Non-depository institutions aren’t letting a relatively stagnant mortgage servicing business stop them from continuing to build market share, according to a new Inside Mortgage Finance analysis and ranking of mortgage servicers at the midway point in 2014. Nonbanks that ranked among the top 30 servicers as of the end of the second quarter serviced an estimated $1.792 trillion of home mortgages, an increase of 12.4 percent over the past year. Depository institutions serviced considerably more – $5.142 trillion – but their aggregate portfolio was down 7.8 percent from the midway point in 2013. The shift to nonbank servicing from the first quarter was...[Includes two data charts]

Second-quarter bank earnings reports show a strong increase in overall mortgage banking profitability as new origination volume rebounded from historic lows set in the first three months of 2014. A new Inside Mortgage Trends review of earnings reports from 21 banks, including eight of the 10 largest banks in mortgage lending, reveals that the group generated $3.81 billion in second-quarter mortgage banking income. That was up 31.5 percent from ...

Not only are residential originations on the rise once again, but so are “signing bonuses” for top-flight loan officers who can bring in the volume. According to research from Garrett, McAuley & Co., signing bonuses being paid today range from $20,000 to $30,000, but “with some going much higher.” With production shifting toward purchase-money lending, LOs with deep ties to Realtors and homebuilders can fetch the most. But according to interviews ...

Concerns that rising interest rates will prompt current homeowners to stay in place are overblown, according to a number of industry analysts. A panel at Zillow’s latest housing forum this week focused on the issue of borrower lock-in, with most speakers downplaying the issue. Joseph Tracy, an executive vice president and senior advisor to the president at the Federal Reserve Bank of New York, said his research has found that rising interest rates ...

Lenders facing rising interest rates might be overlooking valuable hedging options, according to officials at Mortgage Capital Management. The firm offers pipeline risk-management services and is touting float-down locks, or put options on interest rates, which MCM claims will increase earnings stability and grow production. A float-down lock allows a borrower to receive a lower interest rate on their mortgage if rates decline between when ...

Trying to find out how much money an individual mortgage company spends each year in marketing its products to consumers is no easy task. A quick survey of some of the nation’s largest lenders on advertising dollars conducted by Inside Mortgage Trends yielded the same exact response: “We don’t disclose that information.” Many large lenders don’t even engage in specific mortgage-related advertising, at least not on a national level. The one exception is ...