The delinquency rate for residential FHA-insured mortgages fell at the halfway mark of 2014 from the end of the fourth quarter last year, a result of improved overall loan performance, strong credit standards and an improving, albeit slowly, economy, an Inside FHA Lending analysis of agency data suggests. Although the number of FHA lenders included in the analysis has doubled since year-end 2013, delinquency rates in the 30-60 days and 90-day plus buckets appear to be trending downward. As of June 30, FHA delinquencies across the board were down to 13.3 percent from 15.2 percent as of Dec. 30, 2013. The seriously delinquent rate – the percentage of loans that are 90 days or more past due – has dropped to 7.14 percent from 8.08 percent over the same period. The delinquency rate of FHA loans that are at least one payment past due also fell to ... [1 chart]

JPMorgan Chase and Wells Fargo have both paid major settlements regarding FHA lending, and both have curtailed their participation in the program, according to a new analysis of Ginnie Mae data by Inside FHA Lending. During the first six months of 2013, Chase accounted for 11.8 percent of the FHA mortgages in newly issued Ginnie mortgage-backed securities. During the first half of 2014, its volume of FHA loans in Ginnie pools was down 75.8 percent from the same period last year, and its share of the market sank more than half, to just 5.1 percent. Jamie Dimon, Chase’s president and CEO, recently questioned why the bank should stay in the FHA business when legal costs are so high. The Ginnie data show it ... [1 chart]

Ginnie Mae is taking its issuer approval process online effective Sept. 1, 2014. Entities seeking to become an approved issuer of Ginnie mortgage-backed securities must file their applications electronically through the new Application Connection (AC), which is on the agency’s website. Ginnie Mae will no longer accept paper applications after July 31 as it shifts from the old to the new system. The agency is strongly encouraging potential applicants to complete two required courses through the Ginnie Mae Online University before filling out an application to become a Ginnie Mae MBS issuer. The courses are “Ginnie Mae 101” and “Applying to Ginnie Mae.”The two mandatory courses and the Ginnie Mae Online University provide free training and how to apply for approval, as well as the role and responsibilities of a Ginnie Mae issuer in ...

Beginning Oct. 1, 2014, FHA lenders will be required to retain both electronic and hard copies of originals of foreclosure-related documents in their servicing files as well as paperwork relating to loss-mitigation reviews. Specifically, lenders must keep electronic copies of the servicer’s foreclosure committee recommendation, servicer’s referral notice to a foreclosure attorney, and a copy of the document showing the first legal action necessary to initiate foreclosure. Lenders may use electronic storage methods for all other servicing-related documents where retention of a hard copy or original document is not required, according to the FHA. An electronic copy of the mortgage, mortgage note or deed of trust also must be kept and marked “copy.” Lenders are required to preserve originals and hard copies as specified by regulation. If the note has been lost, ...

Comment Period for Single Family Handbook Extended. The FHA has extended from July 29 to Aug. 15, 2014 the deadline for submitting feedback on certain sections within the draft Single Family Handbook. Comments are being sought on sections “Doing Business with FHA – FHA Lenders and Mortgagees” and “Quality Control, Oversight and compliance." Both sections’ contents, as well as supporting information, are posted for review and feedback on the SF Drafting Table in the FHA website. Each section’s web page also contains highlights of changes, frequently asked questions (FAQs) and a feedback response worksheet. Julian Castro as New HUD Secretary. Julian Castro was sworn in as the 16th Secretary of the Department of Housing and Urban Development on July 28. He replaces Shaun Donovan, who is now director of the ...

The changes sought by the MBA would also allow mortgage loan officers at banks to more easily transition to working for nonbanks.

The unspoken factor affecting Ocwen's immediate future is Benjamin Lawsky and the New York Department of Financial Services.

The Countrywide purchase, completed in the summer of 2008, has cost BofA close to $60 billion in operating losses and legal settlements, depending on how the numbers are counted.

Ocwen watchers have wondered when – or if – New York state will ever bring any formal charges against the company.

Mortgage lenders face a heftier Home Mortgage Disclosure Act reporting load under a proposed rule issued by the Consumer Financial Protection Bureau that would implement a number of changes mandated by the Dodd-Frank Act – and then some. The bureau views implementation of the Dodd-Frank changes as an opportunity to improve the data collected under HMDA, ease some reporting burden and modernize how the data are collected and reported, the agency said. The CFPB proposed...