FHA loans are known as low FICO score products, and that's a problem in this new coronavirus world we live in. Warehouse lenders are lowering the boom.
Most of the increase in FHA/VA delinquencies came in early-stage defaults as the share of loans over 90 days late declined. The Ginnie servicing market grew 1.4% in the second quarter.
Correspondent production remained the biggest source of FHA and VA loans, but the rapid growth at United Wholesale Mortgage is reshaping channel dynamics.
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 delinquency rates fell 26.4 basis points between December and January and were down 14.1 bps over an eight-month period ending January, according to the Inside FHA/VA Lending database. [Includes one data chart.]