FHA lenders now face more stringent default monitoring and reporting requirements as federal housing regulators try to keep close tabs on loan performance to reduce losses to the FHA insurance fund. New guidance issued by the Department of Housing and Urban Development requires FHA lenders to use new status codes in their monthly reporting of delinquent single-family mortgages, special forbearances and trial payment plans. At the same time, HUD announced a new reporting requirement for FHA loan modifications in which the servicer receives no incentives. The requirement to use the new codes and to ...
FHA jumbo loan originations increased in the first quarter of 2013 as well as from the same period last year pending hikes in the mortgage insurance premium and the required downpayment on loans above $625,500, according to Inside FHA Lending’s analysis of FHA data. FHA jumbo lenders produced an estimated $5.44 billion in loans over $417,000 during the first three months of the year, up 6.6 percent from the fourth quarter of 2012 and 14.0 percent higher compared to the volume from a year ago. Consumers continued to use the FHA jumbo product despite FHA’s decision to raise the annual mortgage insurance premiums on ... [2 charts]
FHA loans saw an improvement in delinquencies even as the mortgage industry reported an increase in the overall delinquency rate for single-family mortgages at the end of the first quarter of 2013, according to the Mortgage Bankers Association’s latest national delinquency survey. Among loan types, the FHA saw the largest improvement on a seasonally adjusted basis as its delinquency rate dropped to 10.97 percent in the first quarter, down 20 basis points from the previous quarter. This was good news for an agency that has been battling to reduce losses and stabilize its Mutual Mortgage Insurance Fund. However, the refreshing change was ...
The Department of Housing and Urban Development’s Office of the Inspector General has announced a second round of mortgage note sales for this year under the expanded Distressed Asset Stabilization Program. Separate sales of approximately 20,000 severely delinquent loans have been scheduled for June 26 and July 10 as part of HUD’s effort to reduce its bulging inventory of foreclosed residential properties and to target relief to areas hit the hardest by foreclosures. HUD estimates the total unpaid balance of the loans in this sale at ...
Although loan broker employment continues to rise, the market share for table funding declined in the first quarter, according to exclusive survey figures from Inside Mortgage Finance.
Fannie Mae and Bank of America resolved a huge portion of the whopping $19.04 billion in disputed buyback requests facing the mortgage industry at the beginning of 2013, but both government-sponsored enterprises will remain aggressive in hunting for repurchase opportunities. In fact, new repurchase requests increased by a whopping 87.8 percent in the first three months of this year compared to the fourth quarter of 2012, reaching a record $12.14 billion, according to an analysis of GSE quarterly reports by Inside Mortgage Finance. The biggest increase was at Fannie Mae, where new buyback requests soared to $9.91 billion, while Freddie Mac reported a more modest 5.2 percent increase. The jump in new buyback demands occurred...[Includes one data chart]
More Fannie Mae mortgage business is ending up in multi-issuer pools as more lenders turn to direct sales to the government-sponsored enterprise, and experts say the company has been able to turn the trend to its advantage in the securities market. According to a new loan-level analysis of single-family mortgage-backed securities by Inside Mortgage Finance, some 39.1 percent of Fannie’s MBS production in the first quarter of 2013 was in multi-issuer pools. That compared to 30.0 percent, by dollar volume, of the GSE’s MBS issuance back in the first quarter of last year. Single-seller pools, generated mostly by the giants of the mortgage lending industry, continue...
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