Also, Morgan Stanley recently increased its stake in Arch Capital Group to 6.3 percent. Arch owns CMG Mortgage Insurance, which is being renamed Arch Mortgage Insurance Company.
The FHA allows low downpayments on loans that have credit scores as low as 580, but numerous lenders have established their own underwriting overlays to protect against poor performance.
January 2014 marked the fourth month in a row where combined agency securitization included more purchase-money mortgages than refinances, according to Inside MBS & ABS.
Average credit scores and debt-to-income ratios on FHA mortgages loosened as 2013 progressed, according to an analysis by Inside Mortgage Finance. Lenders have gotten particularly aggressive regarding credit score requirements, and recent changes to FHA guidelines could prompt further loosening on DTI ratios. According to an Inside Mortgage Finance analysis of Ginnie Mae loan-level mortgage-backed security data, the average credit score on FHA loans was 706.1 in January. However, as FHA originations declined during the year, average credit scores on FHA loans also fell, hitting 685.4 in December. Average credit scores on FHA originations could continue...[Includes one data chart]
The nation’s third largest FHA servicer also admitted that it failed to inform the government mortgage insurers when its own internal reviews discovered more than 500 defective loans that never should have been submitted for coverage.
The HUD chief told Hispanic real estate professionals that in today’s market, mortgage credit is too hard to obtain for consumers with low credit scores.
American Advisors Group, whose spokesman is former U.S. Sen. Fred Thompson, R-TN, led with $1.05 billion in reverse mortgage originations and a 9 percent market share.
An industry source said lenders in the Riverside-San Bernardino-Ontario housing market are gearing up to petition HUD to recalculate the FHA loan limits in those areas.
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