Approximately $191.8 billion in FHA-insured mortgage loans were securitized during the first nine months of 2015, surpassing the $158.1 billion of FHA loans that were placed in Ginnie Mae pools last year, agency loan-level data show. Securitized FHA purchase loans accounted for $111.7 billion of Ginnie Mae mortgage-backed securities issued over the same period. FHA refinance securitization totaled $66.8 billion. Modified FHA loans were also included in Ginnie MBS totals. The FHA loans in Ginnie MBS had an average loan-to-value ratio of 92.9 percent and an average FICO score of 677.5 percent, reflecting the single-family program’s traditional borrower base. The loans had an average debt-to-income ratio of 39.8 percent. FHA loans accounted for 19.8 percent of loans that underlie Fannie Mae, Freddie Mac and Ginnie Mae MBS. On the other hand, the same loans accounted for 41.2 percent of insured loans in ... [ 1 chart ]
Customer satisfaction tends to be higher for the VA and FHA single-family mortgage programs than for Fannie Mae and Freddie Mac, according to the J.D. Power 2015 U.S. Primary Mortgage Origination Satisfaction Survey. So-called special mortgage programs, such as FHA and VA, showed a substantial improvement in customer satisfaction in 2015 compared to last year. VA customer satisfaction averaged 818 this year, up from 805 in 2014, while FHA customer satisfaction also averaged 818, an improvement from 794 in 2015, said Craig Martin, director of mortgage practice at J.D. Power. On the other hand, overall customer satisfaction with Fannie Mae- and Freddie Mac-related mortgage originations averaged 793 in 2015, an increase of 7 points from 2014. The annual study measures customer satisfaction with mortgage origination in six areas: application/approval process ...
New foreclosure timeframes will become effective for all VA loan terminations completed on or after Jan. 4, 2016, according to a recent notice issued by the Department of Veterans Affairs. The notice provides a table of foreclosure timeframes – the number of calendar days required to complete a foreclosure – which the VA has determined to be reasonable and customary for all states. The timeframes are important in the calculation of the maximum interest payable on a foreclosure of a VA-guaranteed loan. The VA Home Loan Guaranty program offers a partial guaranty against loss to lenders who make home loans to veterans and active-duty military personnel. Agency regulations spell out the circumstances under which VA will pay loan-guaranty claims. Under VA rules, a guaranty claim can include unpaid interest for a period of up to 210 calendar days from the due date of the ...
The Federal Housing Finance Agency “should require the GSEs to be much more transparent in their risk-sharing transactions,” said the Urban Institute in a new report.
Some 66.5 percent of the loans to be included in the MBS are purchase mortgages. The mortgages have seasoned for four months, on average and none were delinquent at the time the deal was priced.
Fannie Mae and Freddie Mac sold $12.58 billion of credit risk through their popular back-end risk-transfer deals during 2015, according to a new Inside MBS & ABS tally of new issuance in the Connecticut Avenue Securities and Structured Agency Credit Risk platforms. While that was up 16.8 percent from the total for 2014, observers continue to call for more diversification in the government-sponsored enterprises’ risk-transfer activities, and greater transparency. The Federal Housing Finance Agency “should require...[Includes one data table]
The Department of Justice plans to use the tactics that it employed in cases involving the financial crisis and MBS in efforts going forward to combat financial fraud, according to agency officials. “It is hard to overstate the creativity of this effort,” Michael Blume, director of the consumer protection branch at the DOJ, said during a speech late last week. He called it “a loosely centralized effort, employing civil penalty statutory provisions, involving close cooperation with regulatory experts and leveraging resources from the entire country.” He noted...
Mortgage securitization rates have been moving higher in 2015 as ongoing new issuance catches up with this year’s surge in primary market originations. A new Inside MBS & ABS analysis reveals that 69.2 percent of the loans originated through the first nine months of 2015 have been pooled in residential MBS, up from the 67.8 percent securitization rate for all of last year. The mortgage securitization rate had dropped...[Includes one data table]
Black Knight Financial also said that despite the reintroduction of Fannie’s and Freddie’s 97 LTV product, the FHA/VA continues to dominate low downpayment lending.
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