The volume of FHA and VA loans securitized in Ginnie Mae pools in 2017 declined from the previous year, according to an analysis of agency data. FHA loans delivered into Ginnie mortgage-backed securities last year totaled $250.5 billion, down 8.7 percent from 2016. Purchase loans comprised 69.6 percent of Ginnie MBS issuances backed by FHA loans over the 12- month period, while refinances accounted for 24.8 percent. FHA borrowers had an average FICO score of 675.3, suggesting a more traditional borrower base of first-time homebuyers and borrowers with credit issues. The FHA loans that were securitized had an average loan-to-value ratio of 92.8 percent and a debt-to-income ratio of 41.3 percent. California led all states in FHA mortgage securitization, with $39.0 billion for all of last year. FHA originations, however, dropped 16.6 percent year-over-year. The other top states in terms of ... [ charts ]
The New York Fed argues that CRTs have reduced the GSEs’ exposure to mortgage credit risk without disrupting the stability of the secondary mortgage market…
Fannie Mae is keeping a close watch on any future changes to the CFPB’s ability-to-repay/qualified mortgage rule, saying whatever happens could have a “material effect on the quality and quantity of loans available for sale to us.” Roughly a year ago, the CFPB announced it would begin its statutorily-mandated assessment of the ATR and QM provisions. “The CFPB is required to assess the effectiveness of the regulations in light of its stated goals and to publish a report, after public comment, on whether ...
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