FHA endorsements in the fourth quarter of 2019 were the highest in years. Most of the increase was in the refinancing business led by the lower interest rate environment.

VA originations set a new record in the fourth quarter despite a slump in purchase lending. Nonetheless, purchase mortgages accounted for a large share of total VA business in 2019.

The Justice Department sees no need to issue additional guidance on defective FHA loans. The agency believes the actions undertaken so far will encourage depository institutions’ participation in the FHA program.