The HECM loss mitigation option is available if there is no indication that the borrower vacated the property or if he or she is attempting to make payments on the amounts due.
The RHS stated that it may seek indemnification in cases of fraud or misrepresentation regardless of when the loan closed or when the default occurred.
The new refinance program being developed for Fannie Mae and Freddie Mac borrowers with high loan-to-value ratios will not be available for homeowners who have already used the Home Affordable Refinance Program, according to the regulator of the two government-sponsored enterprises. The Federal Housing Finance Agency this year directed Fannie and Freddie to develop a replacement program for HARP, which will sunset at the end of 2016. MBS investors have been concerned...[Includes one data table]
Endorsements of reverse mortgages for FHA insurance increased nearly 15 percent in 2015 from the previous year, thanks to a strong first half, according to a new analysis by Inside FHA/VA Lending. Home Equity Conversion Mortgage lenders closed 2015 with an estimated $16.0 billion despite a weak second half in which lenders struggled with the delayed effects of a new policy change. Issued in April 2015, the policy calls for a financial assessment of a HECM borrower’s “willingness and ability” to meet his or her financial obligations and to comply with the program’s requirements. In addition, the policy requires lenders to determine whether an allocation of HECM proceeds should be required for payment of property charges. Nonpayment of property taxes and insurance when they are due is the leading cause of borrower default. Lenders felt the impact of the financial-assessment ... [ Charts ]
Ginnie Mae securitization of jumbo mortgage loans with a VA guaranty rose significantly in 2015 despite a volume drop-off in the fourth quarter, according to Inside FHA/VA Lending’s analysis of agency data. Year-over-year results saw an almost 60 percent increase in Ginnie Mae mortgage securitization backed by VA jumbo loans. This was slightly dampened by 17.1 percent drop in VA MBS production in the fourth quarter from the previous quarter. All top-five VA jumbo securitizers – Wells Fargo, Freedom Mortgage Corp., PennyMac Corp., U.S. Bank, and Quicken Loans – reported significant drops quarter-over-quarter and year-over-year. Wells Fargo delivered a total of $5.0 billion in VA jumbo loans into Ginnie pools, making it the leading jumbo securitizer in that segment. This accounted for 17.7 percent of the market. Freedom Mortgage ended the year with $2.1 billion in ... [ Charts ]
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