VA refi volume was down 31.5% from the second quarter, while FHA refi volume slipped 10.3%.

FHA and VA mortgages tend to have sharply different prepayment rates but they're put together in Ginnie MBS, potentially penalizing FHA borrowers.

Since mid-2022, the agency has been gaining servicing share with lenders turning to FHA mortgages and loans through the Department of Veterans Affairs.

Borrower payoffs accounted for 81% of removals in the quarter, indicating heavy refi activity.

The flow of refinances declined 21.5% on a monthly basis to $8.90 billion in July.

Some $54.47 billion of FHA purchase mortgages were included in Ginnie Mae mortgage-backed securities issued in the second quarter, up 28.9% from the previous quarter.

“Gravity is being tested,” said Mark Garland, a managing director at SitusAMC.

Loans one payment past due increased 19 basis points during the second quarter, after declining during the first quarter.

Among other differences, Congress doesn’t appear to be budgeting for a reduction in force at HUD.

Sales of new single-family homes declined by 13.7% on a monthly basis in May.