Ginnie Mae MBS production rose in April thanks to strong increases in both purchase and refinance business. Rate-term transactions accounted for much of the surge in refi activity, but cash-out deals remain the most prevalent.
FHA’s and VA’s purchase originations fell during the first three months of 2019 despite lower interest rates. On the other hand, lower rates helped boost both programs’ refinance production during the quarter.
Following seasonal patterns, the number of FHA and VA loans in early stages of delinquency fell sharply from the fourth quarter of 2018 to early 2019. Nonbanks continued to expand their footprint, accounting for 62.2% of outstanding Ginnie single-family servicing.
The volume of FHA and VA loans securitized in Ginnie Mae pools declined in 2018, according to an Inside FHA/VA Lending analysis of agency data. [Includes one data chart.]
Many of the loans with lower credit scores and higher debt-to-income ratios that get flagged for manual underwriting under FHA’s revised Technology Open to Approved Lenders (TOTAL) Mortgage Scorecard likely will not get endorsed, analysts said. [Includes one data chart.]
The wholesale-funded broker is slowly penetrating more deeply in government lending, according to a new Inside FHA/VA Lending analysis. [Includes one data chart.]
FHA jumbo lenders ended 2018 on a sour note with total originations during the fourth quarter declining 9.7% on a sequential basis and a whopping 30.9% from a year ago. Purchase loans accounted for 74.3% of the FHA jumbo market last year. [Includes one data chart.]
Ginnie Mae issuers produced just $22.84 billion of new mortgage-backed securities in February, the lowest monthly total in nearly five years, according to a new Inside FHA/VA Lending analysis. [Includes two data charts.]
FHA delinquency rates fell 26.4 basis points between December and January and were down 14.1 bps over an eight-month period ending January, according to the Inside FHA/VA Lending database. [Includes one data chart.]
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