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Inside FHA/VA Lending

July 31, 2009

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HAMP Expanded to Include FHA Loans

FHA loans are now eligible for modifications that reduce up to 30 percent of a borrower’s principal under the government’s Home Affordable Modification Program, the Department of Housing and Urban Development announced late this week. Effective Aug. 15, the FHA will allow borrowers in default who don’t qualify for other FHA loss mitigation options to enter into a three-month trial period... Read More

FHA Volume Surges Through First Half of ‘09

The FHA and Ginnie Mae programs both set new production highs during the second quarter of 2009, paced by an uncommonly high volume of refinance loans. The huge jump in FHA lending did not impact the agency’s share of total originations, however, which hovered around 18 percent for the second straight quarter. The FHA last week reported $36.86 billion of single-family... [Includes three graphs] Read More

Slow H4H Changes Frustrate Lawmakers, Industry

The Department of Housing and Urban Development still has several significant regulatory changes floating through the procedural tunnels of Washington, DC, and the waiting time is putting increased pressure on mortgage industry participants. HUD has yet to implement new HOPE for Homeowners provisions that could finally get the program going. The agency this month submitted a proposed notice... Read More

Bill Extends Loan Limits, Reduces HECMs

The House of Representatives passed the annual housing appropriations bill Thursday, extending the higher FHA loan limits for high-cost areas through September 2010. The bill also requires the Department of Housing and Urban Development to reduce the amount of home equity a borrower could convert to cash through a reverse mortgage. The permanent $625,500 limit for Fannie Mae, Freddie Mac... Read More

Moody’s: FHA/VA RMBS to Take Higher Losses

Analysts at Moody’s Investors Service sharply raised their loss projections for residential mortgage-backed securities backed by FHA and Veteran’s Affairs loans issued after 2001. Despite the FHA insurance, investors in non-agency MBS backed by government insurance still take some loses when loans default. Moody’s said it expects average cumulative losses on these pools... Read More

FHA Defaults Continue to Creep Up

Delinquency and default rates increased across the board on FHA loans as 2009 progressed, and the most recent book of FHA originations is showing troubling spikes in all performance levels. The latest data available from the Department of Housing and Urban Development show that 7.42 percent of FHA single-family mortgages were 90 days or more in default as... [Includes one chart] Read More

FHA Briefs

Major HECM Lender Stops Accepting Applications: Senior Lending Network, owned by World Alliance Financial... HUD Solicits Comments on Pilot Program for No-Credit Borrower Process: The Department of Housing and Urban Development began... BofA Not in Compliance with HECM Requirements: The HUD Inspector General found that Bank of America’s HECM servicing... Read More

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