Servicing of VA loans securitized by Ginnie Mae increased in the second quarter of 2015 even as servicing of FHA-backed mortgage securities fell over the same period, according to an analysis of Ginnie Mae data. Ginnie VA servicing outstanding, which totaled $332.4 billion, was up 2.8 percent in the second quarter from the previous quarter and up 9.0 percent year over year. Wells Fargo maintained its huge lead as the largest servicer of securitized VA loans with a total of $101.1 billion, down slightly from the prior quarter and from the same period a year ago. Ginnie data show Wells ending the quarter with a 30.4 percent share of VA servicing outstanding. USAA Federal Savings Bank lagged far behind Wells in second place with 6.1 percent of total VA servicing outstanding, and that was up 7.1 percent from the previous quarter. Third-ranked PennyMac Corp. increased its ... [ 2 charts ]
The Department of Veterans Affairs’ Home Loan Guaranty program is planning to expand its quality-control process to help VA lenders improve the origination process. The goal is to make the VA program, which has seen a sharp spike in lending, work better for servicemembers and veterans, according to Michael Frueh, director of the VA home-loan guaranty program, during a recent panel discussion of government-backed mortgage insurance programs hosted by the Urban Institute. There are still obstacles to overcome, however, Frueh said. Delayed appraisals are a top complaint among VA lenders, who have to contend with the long wait to get VA appraisals back from appraisal management companies or appraisers. Lenders say that, in some of the hot real estate areas in the country, they have seen a number of contracts extended because appraisals were ...
Department of Housing and Urban Development program staff and the agency’s inspector general are reportedly at loggerheads over an IG recommendation to deny FHA insurance to loans that receive downpayment assistance from programs funded through premium-pricing mechanisms. Responding to critics, the HUD OIG is standing by its audit findings, which could force the HUD deputy secretary to intervene in order to resolve the issues raised by the audit report and restore lender confidence. The report’s recommendation has alarmed lenders that participate in downpayment assistance “gift” programs run by housing finance agencies (HFAs). This prompted Ed Golding, HUD’s principal deputy assistant secretary for housing and head of the FHA, to issue a clarification of the FHA’s position on the issue. Golding’s note reaffirmed FHA’s support for certain downpayment assistance programs (DAPs), “like those run by ...
The Department of Housing and Urban Development’s proposal to remove a key disclosure in a standard HUD/VA form that comes with a residential mortgage closing document is getting flak from the mortgage industry and from some members of Congress. Leading Democrats on the Senate Banking and House Financial Services committees are pushing HUD to reconsider the proposal. They fear the proposed change would make it easier for lenders that have engaged in criminal behavior to re-enter the FHA and VA markets and continue their illegal lending practices. Among other things, HUD’s proposal would eliminate the requirement that FHA lenders certify on each loan application that they are not, or have not recently been, subject to certain charges or penalties. In their letter, Senators Sherrod Brown, D-OH, and Elizabeth Warren, D-MA, and Rep. Maxine Waters, D-CA, urged HUD to ...
A multi-million dollar false claim lawsuit filed by the Department of Justice against Wells Fargo in 2012 appears headed to trial unless both sides agree to renegotiate a settlement. Brought under the federal False Claims Act, the lawsuit has moved on to the discovery phase of the litigation following a failed attempt by the parties to reach a settlement. The DOJ has wielded the FCA effectively in the past couple of years in efforts to recover losses from lenders that allegedly committed loan fraud against the FHA. A string of FCA lawsuits against FHA lenders has resulted in approximately $4.5 billion in recoveries for the government. The 2012 lawsuit alleged that Wells Fargo misled the FHA as to the quality of underwriting on 6,320 FHA-insured loans, which later caused approximately $190 million in losses to the agency’s mortgage insurance fund. Wells Fargo has denied the allegations and maintains that, as a ...
The Federal Home Loan Bank Mortgage Partnership Finance program has announced its first security issuance with a Ginnie Mae guarantee. The $5 million security is backed by home loans originated by community banks and credit unions through the MPF Government MBS product. The Mortgage Bankers Association welcomed the new MBS, seeing it as another opportunity for all lenders to access the capital markets directly, reducing costs and increasing originations. “Many community banks use the FHLB MPF program to sell conventional mortgages into the secondary market,” observed Ron Haynie, senior vice president at the Independent Community Bankers of America. “This expansion in aggregating and securitizing government loans provides community banks with the opportunity to reach more borrowers, especially in rural and small-town markets, and to safely sell those loans to ...
Mortgagee registration for transitioning to the FHA’s Electronic Appraisal Delivery (EAD) portal will begin next month. The EAD portal is a web-based system that will enable mortgagees or their designated service providers to transmit appraisal data and reports to FHA prior to endorsement. By using this portal, mortgagees will find it easier to do business with the FHA and reduce post-endorsement corrections of appraisal data. Use of the EAD portal is free. In order to migrate to the portal before its use becomes mandatory on June 27, 2016, mortgagees must register for one of the available migration phases that the FHA will establish. These phases include the following: Start every 30 days, and be approximately 60 days in duration; Allow mortgagees to migrate to the portal any time at their own pace; Require a timeline for mortgagees that will be submitting appraisal directly to ...
The Federal Home Loan Bank’s Mortgage Partnership Finance (MPF) Program has removed certain barriers to streamline refinancing of government-backed mortgages. Effective on July 6, 2015, the MPF no longer requires minimum FICO score, maximum loan-to-value ratios or appraisals for FHA streamlined refis, VA Interest Rate Reduction Refinance loans and rural housing home loans with a U.S. Department of Agriculture guarantee. The MPF program’s participating financial institutions (PFIs) may now originate and underwrite streamline refis based solely on the requirements of the FHA, VA or the USDA’s Rural Housing Service. The program currently requires borrower and co-borrower income for government loan streamline refis for the purpose of loan presentment. “Presentment” refers to the right to require a lender to demand payment of amounts ...
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