“Most real estate agents say high loan-to-value ratio mortgages are readily available, especially for homebuyers with good credit,” said Tom Popik, research director for Campbell Surveys.

The secondary market in mortgage servicing rights rebounded during the second quarter of 2016 after starting the year with a thud, according to an exclusive Inside Mortgage Trends analysis of mortgage-securities disclosures by Fannie Mae, Freddie Mac and Ginnie Mae. The three agencies saw a combined $42.95 billion of MSR change hands in bulk transactions during the second quarter. That was up 20.6 percent from the first quarter, when ... [Includes two data charts]

Nonbanks serviced $2.155 trillion of agency MSR as of the end of June, a 3.4 percent increase in three months.

The after-mitigation defect rate on FHA mortgages increased from 5.5 percent in the fourth quarter of 2015 to 8.4 percent in the first quarter of 2016.

While some banks have reduced their FHA lending in recent years and alternatives from the government-sponsored enterprises are still gaining traction, homebuyers still have access to low-downpayment mortgage programs, according to the latest Campbell/Inside Mortgage Finance HousingPulse Tracking Survey. “Most real estate agents say high loan-to-value ratio mortgages are readily available, especially for homebuyers with good credit,” said Tom Popik, research director for Campbell Surveys. The HousingPulse survey covering activity in June included...

The U.S. Senate last week passed legislation easing FHA rules on condominium financing even as condo reform rules are undergoing clearance at the Office of Management and Budget. H.R. 3700, the Housing Opportunity Through Modernization Act of 2016, was approved by unanimous consent. The bill passed in the House of Representatives by a vote of 427-0 back in February. Industry observers say the bill would essentially codify long-anticipated guidelines the Department of Housing and Urban Development has drafted. Among other things, the bill requires...

The FHA this week clarified its policy on insuring mortgages with PACE (Property Assessed Clean Energy) senior tax liens to make it easier for borrowers to obtain FHA financing for such mortgages, but the mortgage and real estate industries continue to have concerns. The new guidelines address state programs where the PACE obligation is treated like a property tax with priority over an FHA lien. The program provides financing for home-energy improvements and water conservation, and is repaid through an assessment added to the property’s tax bill. The guidelines are designed...

The new guidance includes a number of provisions, including a requirement for lenders to escrow PACE payments to protect the FHA from losing collateral in a tax sale.

While FHA forward mortgages continued to be the biggest source of collateral, the VA program actually produced a bigger gain, 42.4 percent, from the first to the second quarter.

MBS prepayment speeds are likely to climb higher because of falling mortgage interest rates, but industry analysts are undecided about how big a factor borrower burn-out will be. The Mortgage Bankers Association said its refinance loan application index climbed to 2575.9 in the week ending July 1, its highest level since early 2015. The index fell last week to 2295.8. The average interest rate on a 30-year, fixed-rate conventional conforming mortgage fell...