Borrowers are given the option to either make a single, lump sum draw for adjustable and fixed-rate HECMs at closing or within the 12-month period after the loan closing.

Bank of America has once again unloaded a decent-sized chunk of mortgage servicing rights, this time Ginnie Mae product.

Joel Tillett and five other former employees were indicted in May on federal charges they conspired to defraud mortgage lenders by submitting loan applications that contained false information.

With more than two years left to go in the Home Affordable Refinance Program, it remains to be seen how many HARP-eligible loans will ultimately be refinanced as borrower education and lender participation in the program continue to be major challenges, according to a recent report by the Federal Housing Finance Agency’s official watchdog. In its “mid-program assessment,” the FHFA’s Office of Inspector General report noted that since HARP was launched in March 2009 through March 2013, 2.4 million HARP refis have been completed. The HARP 2.0 modifications rolled out in late 2011 and subsequent changes made throughout 2012 and 2013 have “substantially increased” the program’s refi volume, particularly for loans with loan-to-value ratios greater than 105 percent, said the OIG.

The agency watchdog wants HUD to pursue civil remedies against The Lending Company and impose fines for incorrectly certifying that mortgages were eligible for FHA insurance.

HUD eliminated the standard 30-year, fixed-rate HECM in April because the default rate on the loans was about four times that of a non-HECM regular mortgage.

The trend toward private MI is likely to continue in anticipation of the FHA Solvency Act of 2013, which is awaiting action on the Senate floor.

It appears that mortgage bankers are beginning to liberalize, somewhat, the credit scores they're willing to accept on FHA loans.

MountainView Servicing Group has set a bid deadline of August 29 on the Fannie Mae/Freddie Mac MSRs.

The sale of residential mortgage servicing rights (MSRs) tied to Ginnie Mae mortgage securities is gathering steam with a handful of large deals currently in the market. Bank of America recently held an auction for $22 billion of legacy Ginnie MSRs, according to investment bankers familiar with the offering. Final bids were being taken this week. A winner has yet to be declared. A spokesman for BofA told Inside FHA Lending that in general the bank does not comment on MSR sales, though it has made exceptions when unloading very large packages. Earlier this year, for example, it sold just over ...