Correspondent production remained the biggest source of FHA and VA loans, but the rapid growth at United Wholesale Mortgage is reshaping channel dynamics.
Following seasonal patterns, the number of FHA and VA loans in early stages of delinquency fell sharply from the fourth quarter of 2018 to early 2019. Nonbanks continued to expand their footprint, accounting for 62.2% of outstanding Ginnie single-family servicing.
The wholesale-funded broker is slowly penetrating more deeply in government lending, according to a new Inside FHA/VA Lending analysis. [Includes one data chart.]
FHA jumbo lenders ended 2018 on a sour note with total originations during the fourth quarter declining 9.7% on a sequential basis and a whopping 30.9% from a year ago. Purchase loans accounted for 74.3% of the FHA jumbo market last year. [Includes one data chart.]
Home Equity Conversion Mortgage originations declined in December-January due in part to the recent government shutdown and an overall slowdown in HECM activity, according to an analysis by Situs, Inc.
Congress reportedly plans to reintroduce legislation that would restore Ginnie Mae eligibility for $100 million dollars’ worth of so-called orphan VA streamline refinance loans.
The partial government shutdown, now in its second week, has had limited impact on the FHA and VA lending programs but could be disastrous to federal rural housing programs if prolonged.
There are certain weaknesses in the Department of Veterans Affairs’ interim final rule on VA cash-out refinance loans that need to be ad-dressed to ensure borrowers and investors are protected from loan churning and other predatory lending practices.
Following the November release of FHA’s fiscal 2018 report on the health of the Mutual Mortgage Insurance Fund and increases in FHA loan limits, analysts at The Urban Institute have identified four FHA trends to watch for in 2019.
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