Upcoming changes to federal student loan payment options, combined with the resumption of payments and reporting on outstanding loans, will impact ABS, according to analysts at Morningstar DBRS.
There's the possibility for a borrower to be behind by one or two months on payments, and the servicer has missed FHA's deadline to start a foreclosure.
Issuance of Ginnie Mae single-family mortgage-backed securities declined slightly in August. FHA deliveries were off by 1.9% due to a downturn in purchase mortgages. (Includes two data tables.)
A change to language guiding the application of partial payments to a delinquent FHA mortgage creates a conflict with the first legal deadline for servicers to begin foreclosure proceedings, said Donna Schmidt, managing director at DLS Servicing.
The Department of Housing and Urban Development included a proposed rule in its spring regulatory agenda to restrict the steel chassis requirements for manufactured housing to the bottom floor of a multistory structure.
Lenders and consumer advocates urged FHA to study the financial habits of users of buy-now-pay-later services before making policy changes to how the accounts are used in mortgage underwriting calculations.
Researchers at the think tank said changes need to be made to bring loss mitigation at the Department of Veterans Affairs in line with FHA servicing protocols.