Nationstar Mortgage is looking to enhance its FHA and VA lending and increase the recapture rate for the two loan products, according to the company’s top executives. In its third-quarter earnings call, Nationstar CEO Jay Bray told analysts the company has initiated targeted marketing efforts for refinancing opportunities for FHA and VA borrowers. In the third quarter, Nationstar’s overall origination segment increased funding to nearly $5 billion and raised its recapture to 28 percent. The company has reported profitability for five consecutive quarters and posted $50 million in earnings. Servicing profitability improved for the third quarter to 3.6 basis points, a 57 percent improvement from the prior quarter. In addition, the company generated strong cash flows of $172 million during the period. Ranked 17th among the top FHA lenders in the third quarter, Nationstar originated ...
The Department of Veterans Affairs has issued a policy clarifying how VA lenders should process and underwrite mortgage loan applications when borrowers assert they are married. The policy, which took effect immediately, requires lenders to accept a veteran’s assertion of spousal status when he or she is applying for VA home loan benefits. The policy came a few months after the U.S. Supreme Court held, in Obergefell v. Hodges, that the Fourteenth Amendment of the U.S. Constitution requires a state to issue a license for same-sex marriages and to recognize as valid and legal such marriages performed out of state. The SCOTUS decision opened the door for VA to recognize all same-sex marriages regardless of a veteran’s state of residence. The policy also directs VA personnel to apply the same level of scrutiny to all veteran marriages, regardless of whether they are ...
The population of young veterans in the U.S. military could surge to one million over the next five years and likely lead to a boom in VA loan originations, according to a new Deutsche Bank analysis. Citing data from the U.S. Census Bureau, the analysts said there are an estimated 21.8 million veterans residing in the U.S and that number has held steady since 2013. The analysts further observed a shrinking in the mortality rate of veterans as more troops returned home from overseas in recent years. That contention is supported by the fact that the number of young vets has risen while the older 35- to 64-year-old bucket has shrunk, the analysts said. “The population of younger veterans is expected to continue growing,” they predicted. “This means the number of prospective new homebuyers taking out a VA loan is likely to increase.” As of 2014, there were roughly ...
The U.S. Department of Agriculture Rural Housing Service is seeking comment on a proposed rule that would require servicers to order a “liquidation value” appraisal when estimating a loss claim against the USDA Section 502 Single-Family Housing Guaranteed Loan Program. The purpose of the revised proposed rule is to help reduce processing time, reduce cost and expedite claim submission. Currently, if a real estate-owned property remains unsold at the end of the prescribed marketing period, the RHS will order a liquidation-value appraisal to estimate the cost of holding and disposing of the property. The costs associated with obtaining the liquidation-value appraisal can then be included in the liquidation costs paid under the guarantee. Liquidation costs include attorney fees, liquidation-value appraisal and foreclosure costs. Annual fees advanced by the lender to the RHS are ...
USA Mortgage/DAS Acquisition Co. is again the leading government-backed rural housing lender in Missouri, according to the U.S. Department of Agriculture’s Guaranteed Rural Housing Program. Based in Creve Coeur, an area west of St. Louis, USA Mortgage claimed the top rank for the fifth consecutive year by closing 463 USDA-backed home loans valued at $57.8 million, between October 2014 and September 2015. In FY 2015, 5,019 Missouri families purchased homes through the USDA Section 502 single-family guaranteed housing program. USA Mortgage has topped the $1 billion mark in home-loan volume annually since 2009 and has been ranked the largest home lender in metropolitan St. Louis since 2012. USA Mortgage’s capability to handle all aspects of the home-loan process, from origination through closing and funding, makes it an ideal destination for ...
FHA to Unveil FY 2015 MMIF Audit Results. On Nov. 16, the FHA will release its 2015 annual report to Congress, a document that historically has included the results of the annual actuarial audit of the Mutual Mortgage Insurance Fund, or MMIF. Early in the day, Ed Golding, principal deputy assistant secretary for the Department of Housing and Urban Development’s Office of Housing, is scheduled to brief reporters on the report and take questions. As reported by Inside FHA/VA Lending, the reduction in the annual mortgage insurance premium earlier this year has put the MMIF on an accelerated path to recovery. But whether the ensuing increase in FHA production – which translates into additional premiums – will be enough to get the fund back to its statutory 2 percent capital reserve ratio remains ...
The interim guidelines modify three key areas where lender-complaints have been common, including a revision to the calculation of the owner-occupancy ratio.
The FHA has issued temporary guidelines to ease the condominium approval process and increase the number of condo projects eligible for FHA financing. The guidelines take effect immediately and will be in place for one year to give FHA enough time to write and implement a more comprehensive rule. With the issuance of the guidelines, FHA anticipates an increase in the pool of FHA-eligible condo projects, which in turn will provide more affordable housing options for first-time and low- to moderate-income borrowers. The interim guidelines modify three key areas where lender complaints have been common. First, the guidelines revise requirements for recertification of condo projects. FHA-approved condo projects require recertification after two years to ensure that the project is still in ...
The private mortgage insurance industry did more business during the third quarter than it has in any period since the housing market came unglued in early 2008 and rolled to another solid round of financial results, according to an Inside Mortgage Finance ranking and analysis. But early indicators suggest the FHA and VA government insurance programs continue to provide stiff competition in the primary MI market. While neither government agency has released new business data for the third quarter, trends in the Ginnie Mae program suggest that the private MI share of new primary coverage drifted down to 33.8 percent in the third quarter, the lowest it’s been since the beginning of 2013. Mike Zimmerman, senior VP for investor relations at Mortgage Guaranty Insurance Corp., said...[Includes three data tables]
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