The reduced capital requirements for certain vintage mortgages under recently issued financial standards for private mortgage insurers might embolden MI companies to step up competition with the FHA, according to a new Barclays Research analysis. Such a move, however, would be bad for private MIs at this time, Barclays analysts warned. Buoyed by the changes in the final Private Mortgage Insurer Eligibility Requirements (PMIERs), MI firms could attempt to steal away market share from FHA by going after the agency’s traditional base, the lower-FICO borrower segment. “Such a move would entail significantly more credit risk, something the MI companies may not be comfortable with just a few years after the recent housing downturn,” said analysts. In addition, analysts estimated that return-on-equity after taxes on the lower FICO cohorts are already below the MI’s targeted ...
The Department of Agriculture’s Rural Housing Service now requires appraisals for all guaranteed single-family rural mortgages to be submitted with color photographs of the property to avoid delays in loan processing. The requirement is part of the agency’s effort to fully automate the RHS single-family housing guaranteed loan program. The program’s transition from a paper-based to a paperless documentation system began on March 28. Under the new system, lenders can upload all required origination documents electronically into the RHS Guaranteed Underwriting System and store them in the agency’s imaging repository. Black-and-white photos or copies of rural housing appraisals do not register clearly when uploaded and indexed into the system. This makes it difficult for agency reviewers to evaluate the condition and appearance of the property, causing delays in the ...
Freddie Mac has announced a new “modification solution” screen in Workout Prospector (WP) to facilitate the settlement of modifications of mortgages guaranteed by the Department of Agriculture’s Rural Housing Service. Before entering the data through the modification solution screen, servicers must first have RHS’ written approval to modify the loan, according to latest servicing guidance from the government-sponsored enterprise. When submitting data to Freddie via Workout Prospector, the servicer must complete the data entry in accordance with the instructions in the WP user’s guide and the terms of the RHS modification-approval letter, the GSE said. After completing its review of the data, Freddie will change the WP system status to either “approved” or “declined” with respect to the modification of an RHS mortgage. However, the change does not constitute an approval or denial of the ...
VA Clarifies HUD-1 Itemization Requirements. The Department of Veterans Affairs’ Home Loan Guaranty office has issued guidance clarifying HUD-1 documentation and itemization requirements. The HUD-1 is a statement lenders furnish to borrowers at closing showing the actual settlement costs, including amounts paid to and by the settlement agent. The guidance clarifies and establishes VA policy regarding the following: itemization of lender/seller credits in the 200 series of the HUD-1; itemization of line 801 on the HUD-1; clarification that credits reflected on line 803 of the HUD-1 cannot offset allowable fees’ and itemization of line 802 on the HUD-1. Ginnie Mae Announces Update to Securitization of USDA Section 538 Multifamily Loans. Ginnie Mae has enhanced the securitization of rural, multifamily housing loans with a Department of Agriculture guaranty to make affordable housing available to ...
Few in the industry believe Quicken will actually bolt the FHA program, noting that similar saber-rattling was done by JPMorgan Chairman and CEO Jamie Dimon last year...
But not to worry: the FHFA said the projections were mandated under the Dodd-Frank Act, cautioning that its estimate is just that, and not an expected outcome….
Mortgage brokers accounted for almost 13 percent of originations packaged into Fannie Mae and Freddie Mac securities in the first quarter of 2015, one of the highest readings in quite some time, according to loan-level data compiled by Inside Mortgage Finance. In the fourth quarter, the broker market share was 10.0 percent, a figure that includes originations of all loan types and not just ones packaged into securities. Over the past several quarters, there has been...
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