The big gains in business volume at the FHA and the Veterans Administration reflect the two agencies’ differing missions, and officials at both organizations are looking at ways to improve risk management practices. Ed Golding, principal deputy assistant secretary at the Department of Housing and Urban Development, said the FHA dominates the market for high loan-to-value lending to borrowers with credit scores below 680. While some view 680 as borderline subprime, it’s the median credit score for the country, he noted during remarks at a symposium sponsored this week by the Urban Institute. “Risk management is...

Three leading Democrats in Congress are pushing the Department of Housing and Urban Development to re-issue a request for comments regarding potential changes to the HUD-92900-A form. HUD proposed the changes in mid-May to little fanfare, though the members of Congress warn that the proposal will create a loophole giving “Wall Street banks a free pass at taxpayers’ expense.” The May proposal from HUD involves certifications on the HUD/VA Addendum to Uniform Residential Loan Application form. HUD proposed removing a loan-level requirement that FHA and Department of Veteran Affairs lenders certify that they haven’t been convicted of a violation of federal or state antitrust statutes within the past three years. In a letter sent to HUD this week, Sen. Sherrod Brown, D-OH, Sen. Elizabeth Warren, D-MA, and Rep. Maxine Waters, D-CA, said...

Chase was the sixth largest FHA lender in 2014 with $1.67 billion. Citi ranked 62nd with $342.4 million.

IMA Managing Member Tom Piercy said the advisory firm also plans to offer an $800 million package of Fannie Mae/Freddie Mac servicing rights.

With the second quarter having just ended, several large flow and bulk MSR transactions are in the works...

Over the past seven months, Freedom Mortgage has added 700 to 800 new employees to promote and originate VA and FHA loans.

Ginnie Mae issuance of government-insured mortgage-backed securities rose a whopping 47.3 percent in the second quarter of 2015 from the previous quarter, powered by a robust FHA refinancing volume, according to an Inside FHA/VA Lending analysis of agency data. Government-backed Ginnie MBS production in the second quarter totaled $117.5 billion, up from $79.8 billion in the prior quarter. Volume year-to-date also increased by 57.7 percent from the first six months of last year. From May to June, government-backed securitization increased a modest 2.9 percent. FHA loans comprised 62.6 percent of Ginnie MBS issuance in the second quarter while VA accounted for 33.7 percent. Securitized loans with a Rural Housing Service guaranty represented 3.6 percent of total Ginnie MBS issuance during the period. FHA loan securitization was robust in the second quarter, as volume ... [ Charts ]

Rising home values could present a new opportunity for FHA borrowers to refinance into a conventional loan and enable those borrowers who choose to stay with FHA financing to take advantage of FHA’s reduced annual mortgage insurance premium, according to lenders. With house prices on the rise, FHA borrowers are seeing a build-up in equity. This might be a good time for them to remove that monthly payment and get out of their FHA loan, said Faramaz Moeen-Ziai, vice president of national sales and production at Commerce Home Mortgage in Huntington, CA. With an FHA-insured loan, coverage is for the life of the loan while private mortgage insurance on a conventional is cancellable when paid down to 79 percent of the loan amount. This might be especially beneficial to homeowners living in homes valued far less than what they owe on the property, or to holders of ...

Mortgage industry participants are finding a recently proposed FHA rule that would cancel coverage for late claim filings too harsh. “The penalty far exceeds the crime,” said a mortgage industry consultant, echoing sentiments of lender clients. Out for comment until Sept. 4, 2015, the proposed rule would require lenders to file a claim for a real estate-owned property within three months from the date they obtain title to the property or successfully sell the property to a third party. The requirement would apply to both pre-foreclosure sale and deed-in-lieu of foreclosure. The Department of Housing and Urban Development said the proposed rule would remedy the problem of delayed claim filings – lenders hoarding claim requests and filing them in batches at the same time. HUD’s goal is to process claims sooner and get more accurate data that are accurate for the next ...

The Department of Veterans Affairs has issued guidance to servicers regarding the use of an auction service in lieu of a foreclosure sale to terminate a VA loan. The goal is to get more from foreclosure-sale proceeds to lower the veteran’s mortgage debt. Mortgage holders may find it better to pursue VA loan termination through an auction service, rather than having to waive a greater amount at foreclosure, the VA said. It also may raise awareness among potential bidders and increase marketability and competition, the agency said. While traditional foreclosure methods have long been a part of the loan termination process, they limit servicers’ chances of obtaining greater proceeds at sale, which are applied to lower the veteran’s debt. Consequently, VA ends up paying more for a claim and assuming the liability of managing and marketing a conveyed real estate-owned property. In addition, state and county ...