About 14.1 percent of the mortgages securitized by Fannie Mae and Freddie Mac during the first quarter of 2013 had private mortgage insurance coverage, but those loans were sold by some 1,631 different lenders, according to a new analysis by Inside Mortgage Finance. Although Wells Fargo ranked as the top seller of MI-insured loans to the government-sponsored enterprises, with $9.85 billion in volume, over half of those mortgages were originated by correspondent lenders that may have played a role in deciding which private MI to use. Looking only at retail originations, Quicken Loans was...[Includes one data chart]
Bank of America earlier this year finally settled its long-running dispute with Fannie Mae over buyback demands, an agreement that may help open a window to the government-sponsored enterprise that has been limited to refinance loans. During the first quarter of 2013, BofA sold $6.52 billion of mortgages to Fannie – all of them refinance loans. The company hasn’t sold purchase-money mortgages to the GSE since early 2012, when the two broke off new transactions that didn’t involve refinancing of existing Fannie loans serviced by the bank. In fact, BofA only sold...
Potentially conflicting federal regulations over mortgage lending practices and standards from different government agencies increasingly appear to have the industry in a damned-if-you-do, damned-if-you-don’t position. During a webinar on fair lending challenges this week sponsored by Inside Mortgage Finance, Melanie Brody, a partner at K&L Gates, highlighted one of the challenges the industry faces in navigating between the Department of Housing and Urban Development’s new discriminatory effect rule and the Consumer Financial Protection Bureau’s ability-to-repay rule. “The problem is that ability-to-repay and qualified mortgage requirements add up...
Perhaps, the FHA Mutual Mortgage Insurance fund won't need a bailout after all: In 1Q delinquencies fell by just over 9 percent, according to exclusive figures compiled by Inside Mortgage Finance publications.
Ginnie Mae is seeking comment from Wall Street dealers on whether the agency should continue maintaining two separate MBS programs, or consolidate them and create a third Ginnie Mae security. The agency has reportedly sent questionnaires to dealers seeking their opinion on a number of options, including combining the lower volume Ginnie Mae I MBS program with the far busier Ginnie Mae II program and its likely impact on liquidity, issuance and market share. A Bloomberg report said...
The Senate Banking, Housing and Urban Affairs Committee hasn’t marked up a bill in more than a year, but Democrats and Republicans on the panel pushed this week to begin the process of reforming the government-sponsored enterprises. “I think the time is right to address this issue and move it forward,” Sen. Jon Tester, D-MT, said this week at a hearing by the committee. “I think there are folks on both sides of the aisle that want to quit playing with this like a political football and ...
The Department of Housing and Urban Development this week issued guidance that spells out procedures for demanding indemnification from lenders participating in the agency’s Lenders Insurance (LI) program for loans deemed ineligible for FHA insurance. The guidance (Mortgagee Letter 2013-10) implements regulation that HUD finalized in January 2012. Indemnification for defective LI loans became even more important for the FHA after an independent actuarial audit in November revealed a negative capital reserve ratio and that a taxpayer bailout seemed imminent. Compliance experts warned that, with the policy changes, the more than ...
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