The origination share of adjustable-rate mortgages is expected to hold around its current level this year, although a number of variables could cause it to shift.
Although changes to FHA’s loss-mitigation policies are expected to resolve most of the persistent re-defaults in its portfolio, FHA borrowers continue to be the most exposed to financial stressors.
Ginnie Mae President Joe Gormley addressed how he’s been filling a dual role as temporary FHA head since Commissioner Frank Cassidy went on leave from the position in April.
The lender has tailored its strategy to help VA borrowers compete in a market where government loans are overlooked in favor of higher-downpayment conventional mortgages or cash buyers.
FHA could sustain a zero-downpayment loan option for first-time homebuyers if Congress would allow it, analysts at the Urban Institute contended in a new proposal.
The federal government in 2026 will provide $293.43 billion in loans and loan guarantees to rural households. Some $27.43 billion will come from the Rural Housing Service and $107.52 billion through FHA and VA.
Ginnie Mae President Joe Gormley said changes to the loss-mitigation policies for loans backed by FHA and the Department of Veterans Affairs revealed that some issuers had higher exposure to riskier loans.
Without much relief in sight for borrowers’ pockets, the industry expects growth in non-agency securitizations from loans priced with higher risk premiums by Fannie Mae and Freddie Mac.
Economists have dialed back their more optimistic expectations for mortgage rates this year after Iran war-triggered inflation undid the rate boost from MBS purchases by the GSEs.