The delinquency rate of single-family mortgage loans fell to 7.09 percent of all loans outstanding on a seasonally adjusted basis at the end of the fourth quarter in 2012, the lowest level since 2008, according to the latest Mortgage Bankers Association’s national delinquency survey. The performance of FHA loans, on the other hand, was “mixed,” it said.Loan delinquencies decreased 31 basis points from the prior quarter, and were down 49 basis points from a year ago due to significant improvements in mortgage performance nationwide and in almost every state, the trade group said.“The 30-day delinquency rate dropped by ...

Industry participants who track various FHA data, including Home Equity Conversion Mortgage loans and Neighborhood Watch compare ratios, may have noticed delays in their postings. For example, the latest available data for HECM originations was in September, the end of fiscal year 2012, and no updates have been posted since. David Stevens, president and chief executive officer of the Mortgage Bankers Association, also wondered why Neighborhood Watch was down. He suspected lack of funding. A Department of Housing and Urban Development spokesman explained that the FHA’s reporting timelines and procedures are undergoing ...

Retail mortgage lending, in terms of market share, set a new record last year, but those gains may fade.

Fannie Mae and Freddie Mac continued to wrangle with mortgage sellers over repurchase requests during the fourth quarter of 2012, mostly over loans originated five years earlier, according to a new Inside Mortgage Finance analysis of disclosures by the two government-sponsored enterprises. As the year ended, the GSEs had a whopping $20.11 billion in pending and disputed buyback requests with lenders, up 9.5 percent from the end of the third quarter. While Freddie actually managed to whittle down its stack of unresolved cases by 1.1 percent, the pile grew 10.5 percent higher at Fannie. And 52.1 percent of these disputes involved loans securitized in 2007. The dollar volume of loan repurchases and indemnifications edged...[Includes one data chart]

FHA late payments are on the rise again.

A year ago mortgage servicers – especially small- to medium-sized shops – breathed a collective sigh of relief after the Federal Housing Finance Agency shelved a proposal to radically alter servicing compensation for Fannie Mae and Freddie Mac mortgages. The agency had toyed with the idea of replacing the 25 basis point minimum fee with a flat “fee for service” payment, perhaps as low as $10 per month for performing loans. But there are new concerns that the “fee for service” (FFS) model could be revisited if and when the agency gets a new permanent director. Executives at servicing advisory and investment banking firms say...

In 2010 and 2011, the government-sponsored enterprises purchased billions of dollars of delinquent mortgages out of mortgage-backed securities trusts to save money. Now it appears that Fannie Mae, followed by Freddie Mac, will test the waters to see how much they can get for their nonperforming loans in the secondary market. Investment bankers and loan sale advisors familiar with the matter told Inside Mortgage Finance that Fannie could come to market with a multi-million package of residential NPLs before the end of the first quarter. Fannie, two sources confirmed, has hired...

GSE reform could see the light of day after all - or at least an attempt at it.

The market for nonperforming mortgages could turn white hot in 2013.

In a market that grew by 15.9 percent in 2012, Moody’s increased the volume of ABS deals it rated by just 6.9 percent over its activity in 2011.