The delinquency rates on the approximately 7.9 million FHA loans outstanding fell by 20.7 basis points in August from the previous month, according to an Inside FHA/VA Lending analysis of FHA data. About 11.24 percent of FHA loans were in various stages of delinquency at the end of August. An estimated 4.73 percent of active FHA loans were 30-60 days past due while 3.90 percent were 90-plus days seriously delinquent at midpoint of the third quarter. FHA loans that were 60 to 90 days delinquent accounted for 1.56 percent of FHA loans outstanding while 1.05 percent of loans were in foreclosure. Texas, which accounted for 805,535 of total FHA loans being serviced, reported 11.4 percent of the loans as delinquent or in foreclosure. Second-place California showed a 7.39 percent delinquency/foreclosure rate overall. The state’s foreclosure rate was at a very low 0.53 percent. New Jersey and Louisiana ... [Chart]
The Mortgage Bankers Association expressed support for a proposed collection of a system user fee in the U.S. Department of Agriculture’s single-family housing guaranteed loan program while underscoring the need for transparency and accountability regarding the use of the funds. “The [USDA] should be clear that it is limited in the scope of acceptable uses for the funds and that these funds will not be used for unspecified or unrelated activities,” the trade group said in its comment letter. The call for closer oversight of the proposed user-fees was among several recommendations the MBA made regarding the USDA proposal. Published in the July 13 Federal Register, the proposal would authorize the USDA to assess and collect a $25 fee from lenders for information technology upgrades. The fee will be collected through the USDA’s Lender Loan Closing (LLC) system when a loan goes to ...
Loss rates for notes sold in the Department of Housing and Urban Development’s distressed asset sales program are lower than those for notes that pass through the traditional conveyance claim process, according to HUD’s inspector general. An IG audit found that the DASP loss rate was more than 3 percentage points lower than the loss rate of similar conveyance notes. The IG took into account the losses for actual DASP sales and real estate-owned conveyance claims during the same audit period, the IG said. Ultimately, the DASP program saved the FHA insurance fund more money than the conveyance process, the report concluded. The FHA Office of Housing conducts mortgage loan sales under the Single Family Loan Sale Initiative, and most distressed notes are sold through DASP. The initiative aims to maximize recoveries to the ...
Mortgage fraud is a growing problem, especially income misrepresentation, according to a recent CoreLogic report. All loan segments showed increased risks, except for the jumbo loan segment, which actually witnessed a decline in application fraud.
Five regulators, including the Consumer Financial Protection Bureau, recently clarified that supervisory guidance is not regulation and won’t be the sole basis for enforcement actions. Industry attorneys said the statement would benefit the mortgage industry overall, but lenders still need more guidance to help with tricky compliance issues.
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