Delinquency

Browse articles from all of our Newsletters related to Delinquency.

November 10, 2017 - Inside FHA/VA Lending

MBA Chief Calls for ‘Targeted’ FHA Reforms to Broaden Credit Access

Targeted reform of the FHA housing program, not broad structural changes, can potentially improve borrowers’ access to credit while clarifying the rules for lenders and protecting taxpayers, a top industry executive told Congress earlier this month. Testifying before the House Financial Services Subcommittee on Housing and Insurance, David Stevens, president and CEO of the Mortgage Bankers Association, said FHA reforms do not entail changes to the program’s scope, such as FHA market share or its customer base. Stevens noted that first time or low- to moderate-income borrowers are typical FHA borrowers. “The structure and coverage of FHA insurance has served borrowers and lenders well,” he said. “It should not be reduced or otherwise altered.” The Mutual Mortgage Insurance Fund capital ratios and thresholds are likewise appropriate, though options to improve the fund’s long-term solvency should ...


November 10, 2017 - Inside FHA/VA Lending

MBA Calls for Changes to LRS, Remedies for Lender Complaints

FHA lenders think the new Loan Review System is a “modern and streamlined system” that is less user-friendly than Neighborhood Watch, according to the Mortgage Bankers Association. In a letter to the Department of Housing and Urban Development, the MBA called on the FHA to continue its ongoing discussion with lenders and other industry stakeholders on how the improve the LRS and its response timelines. Implemented last May, the LRS is an electronic platform for monitoring and reviewing the quality of single-family mortgages that FHA has insured. It replaced the post-endorsement technical review performed by the FHA Connection/Underwriting Review System (URS), review functions for post-closing test cases submitted by direct endorsement lenders, and lender self-reporting functions in Neighborhood Watch. The LRS also includes a defect taxonomy, which features a list of ...


November 10, 2017 - Inside FHA/VA Lending

Analysts Expect Positive Actuarial Results for FHA Insurance Fund

Analysts are predicting continued positive results in the forthcoming actuarial report to Congress on the status of the FHA Mutual Mortgage Insurance Fund. The FY 2017 annual report is expected to show stable FHA financials, which could prompt renewed industry calls for a cut to the annual mortgage insurance premium, according to a Bank of America Merrill Lynch analysis. Rising home prices and loan-to-value curing are likely to suppress forecasted losses in the MMIF’s single-family forward portfolio, enabling the fund to stay above its mandated 2.0 percent capital reserve ratio, analysts said. However, the BAML analysts see a “low likelihood of an actual cut in MIPs.” Although Department of Housing and UrbanDevelopment Secretary Ben Carson said he would study MIP reduction once a new FHA commissioner is confirmed, the Trump administration is less likely to ...


November 10, 2017 - Inside FHA/VA Lending

Correspondent Platforms Feast on FHA, VA Securitization Market

Correspondent-based lending operations are accounting for a growing share of the FHA and VA home loans pooled in Ginnie Mae mortgage-backed securities, according to a new analysis and ranking by Inside FHA/VA Lending. In fact, correspondent originations are the only production channel to see year-over-year growth in FHA and VA business through the first nine months of 2017. Retail and wholesale-broker production is down for both FHA and VA loans. Correspondent programs are most dominant in the FHA market, perhaps reflecting a preference among large producers to have recourse to a primary-market lender if the government later finds defects in how the loan was originated. Correspondents accounted for 48.7 percent of FHA loans pooled in Ginnie MBS during the first nine months of the year, up from 43.1 percent in all of 2016. Volume was up 1.7 percent from the ... [Charts]


November 2, 2017 - Inside Mortgage Finance

CFPB Publishes Tool to Track Delinquencies, Initial Sample Finds Rates at Lowest Since Crisis

The Consumer Financial Protection Bureau this week rolled out a new online tool to track mortgage delinquency rates for all 50 states and the District of Columbia. The mechanism also illustrates the CFPB’s findings on the county and metro-area level with interactive charts and graphs, all based on information in the National Mortgage Database. The Mortgage Performance Trends tool measures loans 30 to 89 days late and those more than 90 days late. The interactive charts and maps ...


October 27, 2017 - Inside FHA/VA Lending

Around the Industry

CoreLogic to Provide Solutions to Cut FHA, MMIF Losses. The Department of Housing and Urban Development has chosen CoreLogic to provide valuation and workflow solutions to mitigate losses to the FHA and the Mutual Mortgage Insurance Fund. Under an agreement with HUD, CoreLogic will provide support to determine the best strategies and plans for the valuation and disposition of distressed and real estate-owned properties in HUD’s inventory. Individual Condominium Loan Processing in the VA’s WebLGY System. The Department of Veterans Affairs has issued guidelines to address issues that have arisen since making changes to its web-based loan guaranty system, WebLGY, earlier this month in regards to condominium identification. System changes included removal of the fields where users would input condo IDs when ordering a VA loan identification number (LINs)/appraisal ...


October 27, 2017 - Inside FHA/VA Lending

HUD, VA Provide Additional Relief To Areas Hit by Natural Disasters

The Department of Housing and Urban Development and the Department of Veterans Affairs have taken additional steps to provide relief to homeowners in disaster areas hit by hurricanes Harvey, Irma and Maria. This week, the FHA issued policy waivers in storm-ravaged Puerto Rico and fire-stricken counties in California, allowing damage inspections to be completed beginning Oct. 24. FHA currently requires servicers to perform a damage inspection following the close of an “incident period” as determined by the Federal Emergency Management Agency. An incident period is the period For mortgages in disaster areas that have not closed or are pending endorsement, lenders must follow FHA’s guidelines on inspection and repair escrow requirements for loans in such areas. FHA believes that situations in certain jurisdictions in Puerto Rico and California have stabilized and further damage to ...


October 27, 2017 - Inside FHA/VA Lending

FHA, VA Post Lower Denial Rates, Minorities More Likely Users of FHA

Overall denial rates for nonconventional loan applications (FHA, VA and Rural Housing Service) fell slightly in 2016 to 13.4 percent from 13.9 percent in 2015, Home Mortgage Disclosure Act data showed. In the nonconventional refinancing segment, denial rates rose to 32.9 percent last year from 30.3 percent in the previous year. Approximately 23.9 percent of FHA loan applicants were denied last year while VA turned down 20.0 percent of borrowers who sought a VA loan. An estimated 14.3 percent of FHA purchase-loan applicants were turned down. VA denied 11.4 percent of its purchase-mortgage applicants although its total purchase-loan applications are far fewer compared to FHA. According to the Federal Reserve’s overview of the 2016 HMDA data, as in past years, blacks, Hispanics and “other minority” borrowers had notably higher denial rates overall compared to white borrowers. Denial rates for ...


October 27, 2017 - Inside FHA/VA Lending

FHA/VA Delinquencies Continue Climbing in 3Q17, Servicing Grows

FHA and VA loan performance deteriorated during the third quarter of 2017, a period when the Ginnie Mae servicing market continued to expand. Ginnie had a record $1.749 trillion of single-family mortgage-backed securities outstanding at the nine-month mark in 2017, according to a new ranking and analysis by Inside FHA/VA Lending. That was up 2.2 percent from mid-year and 8.5 percent higher than September 2016. Ginnie servicing has been the fastest-growing part of the market for the past few years. That’s largely because Fannie Mae and Freddie Mac typically see more refinance business, which tends to churn the supply of servicing outstanding more than grow it. The VA side of the government-insured market again was the fastest-growing component, as the dollar volume of VA loans in Ginnie pools rose 3.7 percent during the third quarter. That was more than double the growth rate in the ... [Charts]


October 27, 2017 - Inside MBS & ABS

Most Non-QM Securitized Loans Have Stayed Current, CE Should be Adequate in a Downturn

Nearly all of the securitized loans which failed to meet qualified-mortgage standards that took effect in 2014 are holding up well, and the MBS credit enhancement should be enough to handle any problems that emerge in an economic downtown, according to a new report from DBRS. The credit rating service did an analysis of the collateral and performance trends associated with the 20 securitizations backed by substantial numbers of non-QM loans that have been ... [Includes one data chart]


October 20, 2017 - Inside MBS & ABS

Moody’s Warns Higher Debt-to-Income Ratios Could Lead to Rising Default Rates for Certain MBS & ABS

Default rates could increase for certain types of MBS and ABS as some borrowers experience higher debt-to-income ratios, according to Moody’s Investors Service. The rating service pointed to new results from the Federal Reserve’s Survey of Consumer Finances conducted every three years. The survey showed a modest increase between 2013 and 2016 in the median ratio of debt payments to family incomes among debtors in the 20.0 percent to 39.9 percent income percentile ...


October 13, 2017 - Inside FHA/VA Lending

IG Finds HUD Ensured Purchaser Compliance, Needs Improvement

The Department of Housing and Urban Development inspector general praised the agency for ensuring purchasers participating in HUD’s single-family note sales program complied with the terms in their purchase agreements. The inspector general noted, however, the need to improve the requirements in the purchase agreements. The IG found those requirements inadequate due to the lack of formal rules for the note sales program. “If a purchaser chose not to comply with its purchase agreement, HUD lacked assurance that the purchaser would offer homeowners foreclosure avoidance, loan-modification options, and other program requirements,” the IG’s audit report stated. Under the agreement, loan buyers must certify their avoidance of final closure for the required period of time, perform loan modification, and submit quarterly reports on their progress, including results of ...


October 13, 2017 - Inside FHA/VA Lending

HUD Dumps Lender Insight for New Loan Review Summary Report

The Department of Housing and Urban Development is discontinuing its quarterly newsletter, Lender Insight, with the implementation of FHA’s Loan Review System. The change is aimed at improving both FHA’s and lenders’ quality-control and risk-management operations. HUD will be publishing a quarterly Loan Review Summary Report to provide a snapshot of the results of FHA’s quality-control review of mortgage originations over the preceding 12 months. According to HUD, the report will include only underwritten loans that were subject to a post-endorsement technical review. It does not include the results of lenders’ self-reports or any other loans that were reviewed as part of a lender examination, the agency said. The report will show the initial rating of all loans, the updated rating six months from the end of the review period, and a final rating. The “final” rating is subject to change as long as ...


October 13, 2017 - Inside FHA/VA Lending

Carson Open to Excising HECM From Mortgage Insurance Fund

Department of Housing and Urban Development Secretary Ben Carson indicated he is open to the idea of moving the Home Equity Conversion Mortgage program out of the FHA Mutual Mortgage Insurance Fund to stem future losses. Testifying before the House Financial Services Committee this week, Carson said the changes the department has made recently, as well as those currently under consideration, will eliminate most of the program’s problems although residual issues may still linger. Carson acknowledged that the HECM program’s default rate has been a drain on the MMI Fund even though it is much smaller than the FHA’s forward loan portfolio. The recently revised HECM rules issued on Sept. 19 have “stopped the bleeding” in terms of new reverse mortgages, he added. However, separating the HECM portfolio from the FHA insurance fund and making it a stand-alone program is ...


October 12, 2017 - Inside Mortgage Finance

Widespread Defaults Predicted for Vintage HELOCs Didn’t Happen; Performance Helped by Price Gains

Federal regulators and industry analysts raised concerns that defaults would spike once pre-crisis home-equity lines of credit hit their amortization periods. Those fears didn’t come to pass as vintage HELOCs have performed well, thanks to home-price appreciation and low interest rates. Pre-crisis HELOCs typically had interest-only periods for the first 10 years then switch to fully amortizing or required a full payment as part of a balloon feature. According to a 2015 report by the Office of the Currency ...


Poll

With originations expected to drop in 2018, will your shop turn to non-QM/non-prime mortgage products as a way to bolster volumes?

Yes, definitely. We’re planning a launch.
No. It’s still difficult compliance/regulatory-wise.
Maybe. It’s under consideration.
Not now. But things could change as 2018 progresses.

vote to see results