Several industry trade associations have asked the FHA to confirm whether the 203(k) property rehabilitation program can be used to mitigate future flood threats, particularly for undamaged homes in flood zones. Because of their properties' location in a designated floodplain, homeowners could be hit by rising flood insurance rates. The Mortgage Bankers Association, National Association of Realtors, National Association of Home Builders, National Association of Local Housing Finance Agencies and the Association of State Floodplain Managers said they believe the federal 203(k) program can be used to reduce or minimize the effect of future floodings on undamaged floodplain properties. Flood insurance rates can be reduced significantly by raising a home to a level at or above the 100-year flood elevation, or by ...

Genworth Mortgage Insurance is helping customers understand the benefits of the new master policy private mortgage insurers have helped develop with Fannie Mae and Freddie Mac to improve the MIs' operating and servicing processes. Genworth expects the new master policy to take effect in July. Customers will receive a copy of the document as well as information explaining its benefits and operation before the effective date. A "Master Policy Introduction Reference Notes" and other resources may be found at Genworth's website, including a downloadable sample of the master policy, sample endorsements, a summary of changes and frequently asked questions. In December 2013, the Federal Housing Finance Agency announced the government-sponsored enterprises' completion of the first major overhaul of the MI master policy requirements in many years. As part of their conservatorship, Fannie and Freddie were required to ...

House Weighs Bill to Restore Grandfathered Flood Insurance Rates. There is a possibility that the House of Representatives will vote next week on the amended version of H.R. 3370, the Homeowner Flood Insurance Affordability Act, as Republicans and Democrats continued to negotiate on proposed changes and further protection for homeowners who face hefty rate increases. H.R. 3370 builds on bipartisan legislation the Senate passed last month to delay flood insurance rate increases. Specifically, the substitute bill would make permanent the grandfathering of lower rates, which means catastrophic rate increases would no longer occur because of Federal Emergency Management Agency remapping. The Senate bill would only delay the changes for four years. In addition, the House bill would repeal the home sale/new policy triggers in the Biggert-Waters Act for all properties, including the ...

For Ginnie Mae mortgage-backed securities issued in January 2013, the average reported credit score was 701 and the average DTI ratio was 38.0. By December, the average FHA credit score was down to 680, while the average DTI ratio was up to 40.3.

Bank and thrift MBS holdings fell by 4.6 percent during 2013, and by the end of the year, they were down 7.8 percent from the all-time high of $1.634 trillion reached at the end of March 2012.

Despite continued calls by supporters, the Obama administration remains uninterested in expanding the Home Affordable Refinance Program administratively while existing HARP 3.0 legislation remains hopelessly stalled. Last week during a public appearance, Department of Housing and Urban Development Secretary Shaun Donovan made it clear that HUD will not push for an expansion of HARP.

Private mortgage insurers provided primary coverage on $41.59 billion of mortgages originated during the fourth quarter of 2013, according to a new Inside Mortgage Finance ranking and analysis. While that was down 29.6 percent from the third quarter, it also represented the deepest private MI penetration of new originations in five years. Private MI coverage – including existing insurance transferred to new loans originated under the Home Affordable Refinance Program – accounted for 13.6 percent of new mortgages produced in the fourth quarter. That was the highest private MI share of new originations since the first quarter of 2008, when it was 14.7 percent. HARP continued...[Includes three data charts]

Despite the slowdown, an estimated 630,000 mortgages were guaranteed by VA in FY 2013 – a record. Wells Fargo was the top VA funder with $14.82 billion. USAA was second.

Losses incurred for rep-and-warrant claims tied to MBS could total $89 billion eventually. However, banks have already reserved $88 billion, according to some tallies.

Fannie Mae and Freddie Mac saw dramatic declines in the number of underwater mortgage refinances they acquired in the fourth quarter of 2013, according to a new Inside MBS & ABS analysis. Mortgage lenders delivered an estimated 103,878 Home Affordable Refinance Program loans to the two government-sponsored enterprises in the fourth quarter, down 49.0 percent from the previous period. Our estimate, based on loan-level MBS data, supplement Federal Housing Finance Agency figures that have been updated only through November. The final three months of last year produced...[Includes one data chart]