FHA borrowers who refinance through the agency’s Home Affordable Modification Program will also be eligible to earn $5,000 in the sixth year of their performing, modified loan, subject to the Department of the Treasury’s guidelines, the FHA has announced. The incentive to FHA-HAMP borrowers is one of several enhancements to the Making Home Affordable program that the Department of Housing and Urban Development and the Treasury Department unveiled in December last year. The enhancements were designed to motivate homeowners in MHA to continue making timely mortgage payments, strengthen the safety net for those still facing financial hardships, and help them build equity in their homes. Under the revised HAMP guidelines, all homeowners in the program become eligible to earn $5,000 in the sixth year of their loan modification. This means a borrower’s outstanding principal balance could ...
FHA reverse mortgage production fell during the first nine months of 2014 compared to same period in the prior year due to changes made by the agency to the Home Equity Conversion Mortgage program. The nine-month HECM volume stood at $10.1 billion as of Sept. 30, down 14.8 percent from the previous nine-month period in 2013, according to an Inside FHA Lending analysis of agency data. Volume also fell 9.8 percent on a quarter-to-quarter basis. HECM purchase loans accounted for 93.5 percent of the market while a large majority, 77.0 percent, appeared to favor adjustable-rate reverse mortgages over fixed-rate reverse mortgages. Limited maximum draws in the first year and reduction of principal limit factors – actions taken by HUD to improve the HECM program – significantly decreased the demand for HECM products compared with ... [ 1 chart ]
Ginnie Mae issuance fell 2.2 percent in the fourth quarter of 2014 as the agency closed a busy year with more than $288.1 billion in total business, according to analysis of agency data. Home-purchase loans, at $192.6 billion, comprised the bulk of new government-loan securitizations, while refinances accounted for $73.0 billion. Loan modifications represented $22.6 billion in total issuances. FHA funneled $158.1 billion in loans to Ginnie Mae while VA and Rural Housing Development loans accounted for $109.5 billion and $19.9 billion, respectively. Wells Fargo led all Ginnie MBS issuers with $57.6 billion followed by PennyMac in distant second with $16.7 billion. Chase Home Finance landed in third place with $15.0 billion while Freedom Mortgage closed the year in fourth place with $14.8 billion. Rounding out the top five Ginnie Mae issuers, Quicken Loans ended 2014 with ... [ 1 chart ]
CWCOT, EVARS Webinars Scheduled. The Department of Housing and Urban Development has scheduled free webinars to provide FHA lenders an overview of Mortgagee Letter 2014-24, which deals with the increasing use of FHA’s Claims Without Conveyance of Title procedures. Discussion will include how foreclosing on FHA properties may differ from previous guidelines; requirements for appraisals; bidding instructions; and claim requirements. Personnel who deal with foreclosure valuation, claims and default reporting, real estate auction attorneys and foreclosure attorneys are encouraged to attend. Webinars will be held on Jan. 12 and Jan. 20, 2015, 2 p.m.-4 p.m. EST. For more information, email: stacey.a.brown@hud.gov. Free training webinars on “HUD Extension of Time and Variance Request System,” will be held on ...
Fannie Mae and Freddie Mac saw a modest decline in production of new single-family mortgage-backed securities at the end of 2014, but a rally in refinance lending softened the thud. The two government-sponsored enterprises securitized $179.38 billion of single-family MBS during the fourth quarter of last year, according to a new Inside Mortgage Finance analysis of loan-level data. That was down 2.1 percent from the third quarter of 2014. But the GSEs securitized...[Includes three data charts]
SunTrust Banks started off the new year reliving the pain of the last six years since the financial crisis by revealing it plans to take yet another financial hit – this time, a $145 million legal expense in its fourth quarter results tied to legacy mortgage issues. In a Form 8-K filing with the Securities and Exchange Commission early this week, David Wisniewski, deputy general counsel, said the bank was taking the charge “to increase legal reserves and complete the final resolution of one matter. Accordingly, based on current information, the company expects its estimate of reasonably possible losses related to legal matters, in excess of reserves, to decrease by approximately this amount.” Wisniewski did not specify...
The National Association of Realtors recently estimated that in 2014, nearly 234,000 creditworthy borrowers were priced out of the housing market because of high FHA insurance premiums.
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