Notwithstanding improvement in the financial condition of the FHA Mutual Mortgage Insurance Fund, HUD has no plans to cut mortgage insurance premiums or drop the FHA life-of-loan policy.

Delinquent loans accounted for 7.37% of FHA mortgages in Ginnie MBS at the end of September, up from 6.98% at midyear. The total delinquency rate for VA loans rose from 3.52% to 3.73% over that period. (Includes four data charts.)

HUD’s proposal to allow FHA to unwind its insurance policy to enforce underwriting guidelines is getting mixed reactions from industry stakeholders.

The combined delinquency rate of the entire FHA portfolio rose by 94.8 basis points in the second quarter, returning to normal levels following a dip in 1Q19. The increase was fueled by short-term late payments.

VA has issued interim guidance for implementing legislation, which removes the VA guaranty cap on jumbos.

Delinquency rates for FHA and VA loans in Ginnie Mae mortgage-backed securities rose in the fourth quarter of 2018, but loan performance was generally stronger, according to a new Inside FHA/VA Lending analysis. [Includes four data charts.]