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Volume 11 - Number 9

May 4, 2018

Downloads Available: Securitized FHA/VA Loan Characteristics: 2013-1Q18

Downloads Available: Channel Profile of FHA and VA Loans Securitized in Ginnie MBS: 2013-1Q18

Downloads Available: Ginnie Mae Issuer Profile: 3M18

Downloads Available: Seller Profile: FHA Loans Securitized in Ginnie Mae MBS: 1Q18

Downloads Available: Seller Profile: VA Loans Securitized in Ginnie Mae MBS: 1Q18


Risk Factors Creep Higher in FHA And VA Loans in Early 2018

With overall production levels falling, there was a modest increase in several risk vectors of FHA and VA loans pooled in Ginnie Mae mortgage-backed securities during the first quarter of 2018.A new Inside FHA/VA Lending analysis shows the average credit score for FHA loans in Ginnie MBS issued during the first quarter was 671.1, the lowest level since Ginnie began reporting loan-level data on its securities. That was down from 673.2 in the fourth quarter and 679.2 a year ago. Part of the slide in FHA credit scores likely reflects the increased share of purchase mortgages, which typically have lower scores than refinance loans. The same thing happened in the VA market, where average credit scores fell 1.1 points to 707.8 in the first quarter. A year ago, the average VA score was 710.2. Debt-to-income ratios also drifted higher, suggesting more risk of default. Among FHA loans, the average DTI rose to ... [Charts]

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Poll

Who "owns" the mortgage customer that’s brought to a wholesale lender through a loan broker?

The broker. It’s his/her client.

35%

The wholesale/table funder. They’re taking the financial risk.

30%

The broker, but only for the first year. After that, the borrower is fair game.

13%

Hard to answer. It’s a complicated issue.

22%