Reinstating the government-sponsored enterprises’ conventional 97 percent loan-to-value mortgage programs would benefit first-time homebuyers and borrowers with little or no cash reserves for a downpayment but adversely affect the FHA Mutual Mortgage Insurance Fund, according to analysts. If limited to first-time homebuyers, a conventional 97 LTV loan would offer some new homeowners better home loan financing than FHA and provide greater access to mortgage credit, said analysts with Bank of America Merrill Lynch. For years, Fannie Mae offered conventional 97 LTV loans through its MyCommmunityMortgage to help first-time homebuyers purchase a home with only a 3 percent downpayment. It was a better alternative to FHA’s main product, which required a 3.5 percent downpayment. The Fannie product also had less ...
Ginnie Mae servicing bumped up slightly in the third quarter after an uneventful prior quarter as FHA purchase activity continued to drag, according to Inside FHA Lending’s analysis of agency data. Servicing volume rose quarter over quarter by 1.4 percent. On an annual basis, volume increased 4.6 percent from the same period a year ago. Ginnie Mae servicers ended the quarter with a total of $1.48 trillion in unpaid principal balance, up from $1.46 trillion in the previous quarter. The top three servicers saw volume drop on both quarterly and year-over-year bases. Wells Fargo remained as top servicer of Ginnie Mae mortgage-backed securities, closing out the quarter with $422.4 million, down 0.8 percent from the previous quarter and down 0.6 percent from the prior year. The mega-servicer dominated the Ginnie market with a 28.6 percent market share. JPMorgan Chase carved out a 10.1 percent market share with ... [1 chart]
Radian Reports Strong 3Q14 Results. Radian Guaranty’s new mortgage insurance written increased to $11.2 billion in the third quarter compared to $9.3 billion in the previous quarter, and down from $13.7 billion from the same period last year, according to company financial results for 3Q14. Overall, the private mortgage insurer reported net income of $153.6 million for the quarter, which executives attributed to strong credit performance, a growing MI book of business and solid performance from Clayton Holdings. Radian recently acquired the due-diligence firm for $305 million. Total primary MI in force was $169.2 billion as of Sept. 30, 2014, up from $165.0 billion the prior quarter, while persistency was 83.5 percent at the end of the third quarter. The total number of primary delinquent loans was down 4 percent from the second quarter and down by ...
The nonbank expansion has eased over the past few quarters because once-hungry buyers of receivables such as Ocwen, Nationstar and Walter Investment are no longer gobbling up huge portfolios.
In 2013, Provident Funding Associates of California was the second largest originator of home mortgages through loan brokers, but it has fallen from that high perch in recent quarters. Moreover, there have been recent reports that the privately held nonbank may significantly trim the number of states where it’s willing to accept submissions from brokers. Wholesalers and brokers alike told Inside Mortgage Finance they have heard talk of a large-scale pullout by Provident in multiple states, but have seen nothing definitive. According to agency mortgage-backed securities data compiled by Inside Mortgage Finance, Provident was active with brokers doing business in 41 states over the first nine months of 2014. One broker trade group official, requesting anonymity, said...
Private mortgage insurers would welcome the return of conventional 97 percent loan-to-value mortgages from the government-sponsored enterprises, but analysts say it might not be a slam dunk. The private MI industry has been encouraging the GSEs, particularly Fannie Mae, to bring back the 97 percent LTV product to compete with the FHA’s main product, which requires just a 3.5 percent downpayment. For years, Fannie offered...
Fannie Mae and Freddie Mac reported a combined $6.0 billion in net income for the third quarter of 2014, up from $5.1 billion in the previous quarter. The two government-sponsored enterprises will send to the Treasury $6.8 billion as return on the government’s senior preferred stock. That will bring cumulative payments under the GSE conservatorships to $225.5 billion. Fannie and Freddie were given...
With the Republicans poised to take control of the U.S. Senate and having gained an even greater GOP majority in the House, legislative conversations surrounding housing finance reform should return to Capitol Hill, but few political commentators believe a bill can actually be passed. Control of the Senate swung back to the GOP for the first time since 2006 after the polls closed, as Republicans now enjoy a 52-45-3 majority in the Senate. However, the race in Louisiana between incumbent Democrat Mary Landrieu and Republican challenger, Rep. Bill Cassidy is headed...
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