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.

The Department of Veteran Affairs’ interim final rule on cash-out refinancing appears to be a positive move for borrowers and investors, especially for higher coupon MBS but potential loopholes could seriously weaken it, analysts warned.

FHA officials have sounded alarms over the rising concentration of higher-risk loans in new business. An exclusive new Inside FHA/VA Lending analysis shows they have good reason to be concerned. (chart)

Correspondent-production platforms regained a smidgeon of market share in government-insured lending during the third quarter, according to a new Inside FHA/VA Lending analysis. (chart)

The ability to extract more equity at a lower price appears to be driving the growth in FHA cash-out volume, according to an Urban Institute analysis of FHA’s FY 2018 report on the financial condition of the Mutual Mortgage Insurance Fund.

The Department of Veterans Affairs has announced new VA loan limits for 2019, a 6.9 percent increase from last year.

The Consumer Financial Protection Bureau has filed a complaint and a proposed settlement against a Nevada lender for misleading borrowers on the benefits of VA streamline refinancing.

The CFPB last week sued Village Capital & Investment for deceiving veterans regarding the Interest Rate Reduction Refinance Loans program.

FHA forward mortgage production plunged in the third quarter, precipitated by a substantial drop in purchase activity. [Includes two data charts.]

The Department of Veterans Affairs this week laid the groundwork for changes to its current rules on VA-guaranteed cash-out refinance loans.