The VA said Wednesday it is “strongly” encouraging mortgage servicers to extend their pause of foreclosures for VA-guaranteed home loans through the end of this year.

The new policy includes the implementation of a waterfall of loan modifications designed to reduce borrowers' monthly mortgage payment by at least 20%.

Applications in late May hit the lowest level seen since March.

Lenders took an average pre-tax loss of $645 per loan originated in the first quarter compared with an average loss of $2,109 per loan in the previous quarter.

The 30+ day delinquency rate stood at 3.09% at the end of April.

“The dynamics with the [CFPB] will now start to resemble those of most federal agencies: there will be legal challenges to specific regulations and enforcement actions … but those will be focused, targeted challenges, not existential ones,” according to Adam Levitin, a Georgetown University law school professor.

Several companies increased origination volume, posted stronger gain-on-sale margins and reported rising values for mortgage servicing rights.

The CFPB is considering rulemaking or guidance aimed at improving competition, choice and affordability.

The allowable fee lenders/servicers can charge for assumptions of FHA mortgages is now $1,800.

The five largest banks in terms of servicing for others all reduced their portfolios in the first quarter.