Mortgage lenders originated $48.26 billion of single-family mortgages with VA home loan guaranties during the second quarter of 2016, according to agency data provided this week to Inside FHA/VA Lending. Second-quarter volume was up 30.0 percent from the first three months of the year, with the biggest increase coming in streamlined refinancing. The VA said originations of interest rate reduction loans totaled $16.50 billion in the second quarter, up 51.6 percent ...

The Department of Housing and Urban Development’s inspector general has taken its dispute with HUD over downpayment assistance to Congress, accusing FHA of steering borrowers to DPA programs with an illegal funding scheme. In a recent letter to House Financial Services Committee Chairman Jeb Hensarling, R-TX, HUD Inspector General David Montoya said premium pricing uncovered during an audit of an Arizona-based FHA lender violates federal law regarding ...

An FHA servicer’s failure to communicate in a timely manner with delinquent borrowers for potential loss mitigation options exposed troubled homeowners to the risk of losing their home, according to results of an audit by the Department of Housing and Urban Development’s inspector general. The delay also may have resulted in a violation of federal and state bankruptcy laws, the inspector general’s report noted. The audit looked into Selene Finance’s servicing of FHA loans and ...

Revised forms lenders must file when submitting a mortgage loan for FHA insurance became mandatory on Aug. 1, raising hope for more lender participation in the FHA single-family mortgage insurance program without fear of liability. The improved form, HUD/VA Addendum to the Universal Residential Loan Application (Form 92900-A), eliminates the requirement that lenders certify to their compliance with all FHA requirements. The FHA first proposed changes to ...

Regions Financial Corp., a $125 billion Alabama bank, has reached a preliminary settlement with the Department of Justice and the Department of Housing and Urban Development to resolve an investigation into the bank’s FHA lending practices. The reason for the investigation was not disclosed in the bank’s 10-Q filing, although Regions acknowledged that DOJ and the HUD inspector general are focusing on its FHA loan origination procedures, underwriting and ...

The Department of Veterans Affairs has issued new guidance to clarify the loan-fee structure for VA purchase and refinance mortgages, loan assumptions and manufactured home loans. The detailed funding fees are in effect for VA loans closed on or after Nov. 22, 2011, and before Sept. 30, 2024. For first-time use of the VA housing benefit, a VA loan with a downpayment of less than 5 percent would have a funding fee of 2.15 percent for veterans and 2.40 percent for reservists ...

The Department of Housing and Urban Development is seeking comment on a supplemental proposal, which would require an FHA lender to file a claim when a Home Equity Conversion Mortgage loan reaches 98 percent of the maximum claim amount. The proposal stems from another proposed rule published by HUD last May that would codify previous revisions to the HECM program and make additional changes. The proposal would provide the lender an opportunity ...

The Department of Housing and Urban Development’s inspector general has urged the agency to direct FHA lenders to show documented proof that properties in Flint, MI, had a safe and potable water source at the time their FHA loans were closed and endorsed, or face indemnification. The HUD IG, in a report, said it audited the department’s oversight of FHA-insured loans in Flint in the wake of news reports of high levels of lead contamination in the city’s public water system ...

The FHA’s and VA’s acceptance of residential properties with existing senior PACE (Property Assessed Clean Energy) liens is credit positive for asset-backed securities backed by PACE assessments and could have a mixed effect on some residential mortgage-backed securities, according to a new analysis by Moody’s Investors Services. The move is expected to expand the availability of mortgage financing for purchasers of homes with PACE obligations as well as ...

Despite quickening refinance activity, the FHA single-family market soared over the $1 trillion mark in loans pooled in Ginnie Mae mortgage-backed securities during the second quarter of 2016, according to a new Inside FHA/VA Lending analysis. A record $1.001 trillion of FHA single-family loans made up the lion’s share of collateral backing Ginnie MBS as of the end of June. That was a 1.3 percent increase from the previous quarter and a 5.5 percent gain from the midway point in 2015. Steady growth in FHA loans helped push Ginnie single-family MBS to $1.576 trillion outstanding, topping Freddie Mac for second place in the agency market. The VA loan guaranty program was still the fastest-growing corner of the government-insured market, with total VA loans in Ginnie pools up 3.8 percent from March and 16.7 percent higher than a year ago. The actual amount of FHA and VA loans outstanding is somewhat ... [ 4 charts ]