New issuance of agency single-family MBS fell in August to its lowest monthly total of the year, according to a new market analysis and ranking by Inside MBS & ABS. Fannie Mae, Freddie Mac and Ginnie Mae generated a total of $130.88 billion of new single-family MBS last month, down 9.3 percent from July. It was the lowest monthly production volume since December 2012. New issuance by the government-sponsored enterprises fluctuated sharply at that time as lenders jockeyed around rising guaranty fees and the implementation of more favorable reps and warranties policies. All three agencies saw...[Includes one data chart]

Fewer borrowers are using FHA financing, which has enabled private mortgage insurers to take back more market share from the FHA, according to Inside FHA Lending’s analysis of industry data. Borrowers are shying away from FHA due to higher mortgage insurance premiums (MIPs) that took effect early this year and to the new policy eliminating MI cancellation. Private MIs accounted for 36.6 percent of primary mortgage insurance written in the second quarter, their highest level since 2008. This was up from 32.7 percent in the first quarter and from 30.5 percent a year ago. Private MIs also provided coverage on ...

At the end of FY 2013, Congress will be looking at the results of two, separate actuarial audits of the FHA Mutual Mortgage Insurance Fund that may or may not agree with each other’s findings. Nonetheless, the FHA contends it needs a second actuarial opinion on the FY 2013 audit to ensure that the review of the financial condition of the MMI Fund is robust, thorough, consistent, accurate and transparent. “The FHA recognizes the value of having ‘fresh eyes’ on our insurance fund – new perspectives and different analytical models will give us a more ...

The Department of Housing and Urban Development is phasing out the Saver and Standard loan products under the Home Equity Conversion Mortgage program in favor of a new reverse mortgage that limits the amount of money a borrower can draw at closing to 60 percent of the value of the home. The fixed and adjustable HECM Standard and Saver options will still be available until Sept. 29, said HUD. The revised principal limit, pricing and disbursement policies for the new HECM product will become effective on Sept. 30. The revised HECM guidance also ...

The Department of Housing and Urban Development has issued guidance establishing general procedures for mortgages and foreclosures on tribal lands. The Model Tribal Mortgage Lending Code is designed to meet the needs of mortgage loan guaranty, insurance and direct loan programs of the FHA, the Home Loan Guaranty program of the Department of Veterans Affairs, and the Rural Housing Program of the Department of Agriculture. Each of the federal agencies offers various mortgage-loan programs for Native Americans who wish to live on tribal trust lands or within a tribal area. The Housing and Community Development Act of 1992 created ...

The Department of Housing and Urban Development has charged Fifth Third Bank and a mortgage broker with discrimination for allegedly requiring medical proof from a couple with disabilities who were seeking FHA refinancing. Fifth Third Bank, Fifth Third Mortgage Co. and Cranbrook Mortgage Corp. were accused of violating the Fair Housing Act, which makes it illegal for creditors to deny or discriminate against borrowers based on disability, race, color, religion, national origin, gender or family status, including imposing different application or criteria on protected classes. The married couple, whose names HUD withheld, receive ...

Many of the lenders with high default rates are smaller companies while those with larger portfolios tend to perform better than the national average, according to Inside FHA Lending’s analysis of compare ratios on two-year FHA loan portfolios. The compare ratio is the percentage of a lender’s default and claim rate compared to the national average. It is shown as a numerical value, which HUD uses to determine lender performance. A compare ratio of over 150 percent will land a lender on HUD’s watch list and a ratio greater than 200 percent could result ... [1 chart]

Although agency originations and refinance activity continued to dominate residential mortgage lending during the second quarter of 2013, a new Inside Mortgage Finance analysis and ranking reveals that both those components were losing steam. In fact, the only product category to show growth during the period was the jumbo market, where originations increased by 9.3 percent and reached their highest quarterly volume – an estimated $59 billion – since the third quarter of 2007. On a year-to-date basis, jumbo originations were up 17.7 percent from the first half of last year. Agency production still accounted...[Includes two data charts]

With more than two years left to go in the Home Affordable Refinance Program, it remains to be seen how many HARP-eligible loans will ultimately be refinanced as borrower education and lender participation in the program continue to be major challenges, according to a recent report by the Federal Housing Finance Agency’s official watchdog. In its “mid-program assessment,” the FHFA’s Office of Inspector General report noted that since HARP was launched in March 2009 through March 2013, 2.4 million HARP refis have been completed. The HARP 2.0 modifications rolled out in late 2011 and subsequent changes made throughout 2012 and 2013 have “substantially increased” the program’s refi volume, particularly for loans with loan-to-value ratios greater than 105 percent, said the OIG.

The sale of residential mortgage servicing rights (MSRs) tied to Ginnie Mae mortgage securities is gathering steam with a handful of large deals currently in the market. Bank of America recently held an auction for $22 billion of legacy Ginnie MSRs, according to investment bankers familiar with the offering. Final bids were being taken this week. A winner has yet to be declared. A spokesman for BofA told Inside FHA Lending that in general the bank does not comment on MSR sales, though it has made exceptions when unloading very large packages. Earlier this year, for example, it sold just over ...