The correspondent channel accounted for 40.1% of the survey group’s government-insured production in the third quarter, up from 37.7% in the second quarter.
Measures contained in bipartisan housing packages in both the Senate and House would attach a disclosure to the military service question on the uniform residential loan application to raise awareness of VA loans.
Lenders grew the share of government-insured loans originated through correspondent channels in the third quarter, according to an Inside FHA/VA Lending analysis of proprietary survey data.
Early effects from FHA’s revisions to its loss-mitigation practices have begun to show up in data, although it will still take time for the longer-term impacts to play out.
Proposed legislation to advertise the benefits of VA-backed loans would add costs for lenders without providing substantial benefits to borrowers, said the Mortgage Bankers Association.
FHA waived new language that complicated how partial payments on delinquent mortgages would affect the legal deadline for servicers to proceed with foreclosure.