Incentive payments to FHA servicers based on a compliance score will soon replace the current tier ranking-based inducements used by the Department of Housing and Urban Development to reward above par servicer performance. In an update to its servicer evaluation process, HUD said implementation of the National Servicing Center’s Servicer Performance Scorecard (SPS) is underway and the transition from Tier Ranking System (TRS) incentive payment to an SPS payment scheme will be announced in a mortgagee letter as soon as the implementation is completed. In the future, the SPS may be used as ...

The Department of Housing and Urban Development is evaluating potential changes to its tough condominium requirements, some of which could be announced soon. A department spokesperson declined to comment on specific requirements that may be included in new guidelines but said the agency is working to respond to industry concerns. Industry observers say the rules, which HUD put in place in 2009, have left many condominium units ineligible for FHA-insured financing. Condominium association boards have been ...

The FHA saw its total originations drop 5.4 percent in the first three months of 2012 compared to the same period last year but posted a modest gain on a quarterly basis, according to Inside FHA Lending’s analysis of FHA data. Excluding Home Equity Conversion Mortgage loans, FHA originations in the first quarter totaled $50.0 billion, of which 79.0 percent were originated in-house. Sponsored third-party originators accounted for the remaining 21.0 percent, or approximately $10.5 billion, data showed. Production jumped 12.0 percent in the first quarter of 2012 from $44.6 billion in the fourth quarter of 2011. The top 50 FHA lenders accounted for ... [With 1 chart]

Effective June 2012, Ginnie Mae will provide monthly disclosures about accumulated multiple issuer pool (MIP) activity in terms of dollar amount and number of loans as well as by pool term, pool type and security interest. The information provided will apply to issuances for the current month. The disclosure will provide issuers and investors additional insight into the multiple issuer pools in process. However, the information can change any time until the completion of the MIP process at the end of the month, Ginnie Mae cautioned. A final list will be ...

One of the newly filed Senate bills to advance the White House’s election-year refinance initiatives would pay for itself by extending the decade-long hike in loan guarantee fees for “just one more year” through 2022, according to the bill’s Democrat sponsor. Last week, Sen. Diane Feinstein, D-CA, introduced the Expanding Refinancing Opportunities Act of 2012, to allow more homeowners the chance to refinance via FHA mortgage insurance. The bill is geared toward mortgages not already guaranteed by Fannie Mae, Freddie Mac or the FHA. Feinstein’s bill would create a $6 billion FHA fund to provide...

The paint is still wet on the expanded Home Affordable Refinance Program, but the Obama administration says it is firmly behind efforts by Senate Democrats to expand the program for underwater Fannie Mae and Freddie Mac borrowers even further. Sens. Robert Menendez, D-NJ, and Barbara Boxer, D-CA, are preparing to file legislation that would force Fannie Mae and Freddie Mac to waive representations and warranties on new HARP loans regardless of whether the refinance lender serviced the previous mortgage. The forthcoming Responsible Homeowner Refinance Act of 2012 would also prohibit the government...

Mortgage servicers could find themselves in a quandary as they implement the national servicing standards outlined in the March foreclosure settlement agreement, especially if they run into conflicting FHA requirements. Compliance experts say that while many of the settlement standards could be carried out within the FHA program without being at odds with existing FHA requirements, conflicts do exist with the guidelines that cannot be resolved. Even when it is technically possible to comply with both FHA guidelines and the settlement standards, it is still going to ...

FHA lenders are anticipating a spike in volume when changes to the FHA Streamline Refinance Program become effective next month. The biggest change to the program taking place on June 11 is the lower upfront mortgage insurance premium, which the Department of Housing and Urban Development had reduced to just 0.01 percent, and the annual MIP, which was lowered to 0.55 percent. The new premium pricing is effective for all streamline refi transactions that are refinancing FHA loans endorsed on or before May 31, 2009. HUD expects the change will ensure that borrowers benefit from a net reduction in their overall mortgage payment and, at the same time, reduce risk to the FHA. The FHA Streamline Refi program allows borrowers with FHA-insured loans who are current on their mortgage to refinance into a new FHA-insured loan without ...

The FHA and the reverse mortgage industry are working on guidelines that would help lenders in the Home Equity Conversion Mortgage program identify unsuitable borrowers. Financial assessment guidelines that are currently in development would limit the pool of HECM applicants to those who can afford to meet the program’s financial obligations in a timely manner, said Jeffrey Lewis, chairman and chief executive officer of Generation Mortgage in Atlanta. HECM loans account for 90 percent of all reverse mortgages originated in the U.S. Loan volume had contracted in the wake of the financial crisis, down ...

Ginnie Mae has announced new data disclosures effective Sept. 1, but investors say it is information they do not need. These include indicators identifying first-time homebuyers, type of third-party originator, and the upfront and annual mortgage insurance premiums. The new disclosures will provide greater transparency on the collateral that backs Ginnie Mae mortgage-backed securities, the agency explained in its latest guidance to program participants. The move also aligns Ginnie Mae’s data disclosures with the industry, it added. Issuers that are unable initially to provide the data will ...