FHA & Ginnie Mae

Browse articles from all of our Newsletters related to FHA & Ginnie Mae.

August 18, 2017 - Inside FHA/VA Lending

Around the Industry

Ginnie Mae’s Fiscal YTD MBS Issuances Surpass $400 Billion. A modest volume increase in monthly securitizations in July pushed Ginnie Mae’s FY 2017 overall volume past $400 billion. Ginnie reported that $1.86 trillion of its mortgage-backed securities were outstanding as of July 1, up from $1.84 trillion in June and from $1.70 trillion from the same date last year. Last month, mortgage lenders pumped a hefty $112.4 billion of single-family home loans into the MBS platforms of Fannie Mae, Freddie Mac and Ginnie Mae, according to an analysis by Inside Mortgage Finance. Circuit Courts Split on DOL Overtime Rule. The U.S. Court of Appeals for the Ninth Circuit recently held that mortgage underwriters are not “administrative employees” and, therefore, not exempt from the overtime protections of the Fair Labor Standards Act. The court’s ruling in McKeen-Chaplin v. Provident Savings Bank overturned a ...


August 18, 2017 - Inside FHA/VA Lending

WIMC Rethinks Reverse Mortgage Strategy, Mulling Sale of Assets

Walter Investment Management Corp. is evaluating options for its reverse mortgage business, including the possibility of selling some or all of its assets or collaborating with third parties. WIMC’s reverse-mortgage segment has been adversely affected by the Department of Housing and Urban Developments new requirements, raising the need for additional working capital to finance Ginnie Mae buyouts, according to the company’s 10-Q disclosures. The company reported pre-tax losses of $93 million in the second quarter of 2017. The reverse-mortgage segment reported $16.5 million of pre-tax loss for the same period, following a pre-tax loss of $26.9 million in the prior year quarter. During the second quarter, WIMC’s reverse-mortgage business generated $15.4 million in revenue, down $0.7 million year-over-year. Cash generated by the origination, purchase and securitization of Home ...


August 18, 2017 - Inside FHA/VA Lending

No Ginnie Mae Summit in 2017, Event Moved to January 2018

Ginnie Mae will not have an annual summit this year but has rescheduled it for January 2018, according to Ginnie Mae’s new spokesperson. Michael Huff, senior advisor, congressional and stakeholder relations, said a new administration and staff departures have caused organizers to reconsider having the annual Ginnie Mae Summit this year, usually held in October. The Trump administration has yet to announce a nominee for the top job at Ginnie Mae since former president Ted Tozer left in January. David Kittle is reportedly a leading contender, but there has been no official announcement or confirmation. So far, Kittle has declined to comment. Kittle is a mortgage industry veteran who began as a loan officer and now heads his own company. He also was a top executive with the Mortgage Bankers Association and managed, among other things, the group’s political action committee. In addition, Kittle co-founded the ...


August 18, 2017 - Inside FHA/VA Lending

Private MI Trade Group Urges CFPB To Establish Single QM Rule for All

The private mortgage insurance industry has called for harmonized qualified-mortgage standards to discourage potential arbitrage that might adversely affect consumers. In a comment letter, the U.S. Mortgage Insurers urged the Consumer Financial Protection Bureau to assess whether the various QM standards established under the Dodd-Frank Act have created arbitrage opportunities to the detriment of consumers. The CFPB is about to begin a reevaluation of its ability-to-repay rule/QM rule. QM standards are different for Fannie Mae, Freddie Mac and the Federal Home Loan Banks than for FHA, VA and the U.S. Department of Agriculture. The USMI said analysis should focus on the different treatment of points and fees and maximum borrower debt-to-income ratio among the various QM standards. The CFPB can address the calculation of points and fees under its ATR/QM rule by ...


August 18, 2017 - Inside FHA/VA Lending

NYDFS Accuses Veterans United of Overcharging Vets on VA Loans

The Mortgage Research Center, which does business as Veterans United Home Loans and/or VA Mortgage Center, has agreed to pay $1.1 million to New York regulators to resolve allegations of overcharging veterans on loans guaranteed by the Department of Veterans Affairs. Veterans United was the second largest VA lender in the country in the second quarter, with a 5.4 percent share of the VA market, according to the Inside FHA/VA Lending database. The settlement agreement is part of a consent order entered into recently by Veterans United with the New York Department of Financial Services (NYDFS). The settlement stemmed from an investigation which found that the Columbia, MO-based company did not refund “surplus lender credits” on 322 VA loans originated from Jan. 1, 2011, to June 30, 2014. According to the consent order, borrowers obtained a credit from ...


August 18, 2017 - Inside FHA/VA Lending

Wells Fargo, PHH Reach Separate Settlements to Resolve FCA Suits

Wells Fargo and PHH Mortgage have reached separate settlements with the Department of Justice and three other federal agencies to resolve alleged violations of the False Claims Act. The DOJ, Department of Housing and Urban Development, Department of Veterans Affairs and the Federal Housing Finance Agency will rake in $182 million from the settlement of lawsuits involving FHA and VA loans, as well as loans sold to Fannie Mae and Freddie Mac. Wells Fargo denied the allegations in the whistleblower lawsuit but agreed to pay $108 million to resolve the claims. It admitted to no fault or liability. Filed in 2006 and unsealed in 2011, the lawsuit alleged that the bank overcharged veteran borrowers by masking ineligible fees in order to obtain VA guarantees on certain Interest Rate Reduction Refinancing Loans, or streamlined refi mortgages. At the same time, Wells allegedly falsely certified to the VA that it ...


August 18, 2017 - Inside FHA/VA Lending

Clarity Sought on HUD Preemption Of State Statutes of Limitation

Reverse mortgage lenders are asking FHA to clarify the applicability of state statutes of limitations on collections and foreclosures involving Home Equity Conversion Mortgage loans. In a comment letter to the Department of Housing and Urban Development, the National Reverse Mortgage Lenders Association sought clarification to avoid any potential risk to the department and reverse mortgage lenders. Since federal agencies are not subject to state statutes of limitations, the NRMLA asked the FHA to confirm that HECM loans assigned to HUD are not covered by state statutes of limitations on collections and foreclosure. The trade group also requested FHA to clarify whether HECM regulations and program guidelines preempt any such state law. “Requiring mortgagees to assign loans to HUD and make certifications that such loans are and will be ...


August 18, 2017 - Inside FHA/VA Lending

FHA Originations Up, VA Down, Quicken, USAA Lead Production

FHA production increased slightly even as VA originations fell by a larger percentage in the second quarter of 2017, an analysis of the agencies’ lending activities found. FHA ended the quarter with $60.8 billion in forward mortgage endorsements, up 1.8 percent from the previous quarter. In contrast, VA originations declined by 4.9 percent over the same period, closing the second quarter with $40.8 billion. FHA and VA production typically gain share when the purchase-mortgage lending increases. For example, Inside Mortgage Finance reported that purchase mortgages comprised 71.3 percent of loans securitized in Ginnie Mae mortgage-backed securities in 2Q17, compared to 59.9 percent in Fannie Mae and Freddie Mac MBS. FHA endorsements over the first half of 2017 totaled $120.6 billion, of which $86.0 billion were purchase loans. This was up 4.8 percent from the same six-month period ... [Charts]


August 18, 2017 - Inside FHA/VA Lending

Industry Experts Favor Unified GSE, FHA/VA Servicing Policies

Simplifying and aligning the default servicing policies of the conventional conforming and the government-backed mortgage markets would better serve the mortgage industry and homeowners, according to industry experts. In a recent discussion on how regulatory burden and high servicing costs might impede lending, members of the Mortgage Servicing Collaborative agreed on the need for streamlined and harmonized federal, state and agency policies and rules on servicing. Increased regulatory requirements have caused mortgage-servicing costs to skyrocket in recent years, experts said. Even though the quality of servicing has improved, the new regulations are complex and costly, they noted. Multiple pressures placed upon servicers have suppressed mortgage lending, making it harder for borrowers with tainted credit to obtain a mortgage, according to the ...


August 18, 2017 - IMFnews

With No Ginnie Mae President on Board, Annual Summit Moved to January 2018

The Trump administration has yet to announce a nominee for the top job at Ginnie Mae...


August 17, 2017 - IMFnews

Government-Insured Mortgages the Biggest Gainer in 2Q17

Roughly 71.0 percent of second-quarter primary-market originations of first-lien mortgages were purchase loans, the highest reading in years…


August 16, 2017 - IMFnews

Short Takes: HUD Deputy Nominee Waits on the Senate, Still / Refis Rising? / A Private Placement for Ellington / Ellie Goes After the Big Boys / A Share Price Estimate of Zero

Mortgage software provider Ellie Mae said in a recent SEC filing that “part” of its business strategy is to target larger mortgage lenders...


August 11, 2017 - Inside Mortgage Trends

Low-Downpayment Lending Continues to Expand

Low-downpayment lending is the highest it’s been in almost seven years as the purchase market keeps growing, according to new data from Black Knight Financial Services. “Over the past 12 months, approximately 1.5 million borrowers have purchased homes using less than 10-percent downpayments,” according to Ben Graboske, executive vice president of Black Knight Data & Analytics. “The increase is primarily a function of the overall growth in purchase lending ...


August 11, 2017 - IMFnews

Mortgage REITs Boost MBS Investments During 2Q17, Show Healthy Appetite for Risk-Transfer Deals

Annaly Capital Management remained the largest MBS investor in the group, accounting for 32.2 percent of the market…


August 9, 2017 - IMFnews

In 2Q17, Correspondent Channel Held Up in a Shifting FHA/VA Market

Brokers saw the biggest increase in FHA business, with volume up 14.5 percent…


August 8, 2017 - IMFnews

PHH Enters Into Settlements with DOJ, FHFA to Settle Underwriting Issues Tied to Legacy Loans

PHH said it settled the cases without admitting liability “to avoid the distraction and expense of potential litigation.”


August 7, 2017 - IMFnews

Why is it Taking So Long for Trump to Nominate Kittle as Ginnie Mae Chief?

According to industry officials who claim to have knowledge of the matter, Kittle is still the top pick, but...


August 4, 2017 - Inside FHA/VA Lending

Around the Industry

VA Announces VALERI Offline Dates. Due to a legacy loan purge, the Department of Veterans Affairs’ VA Loan Electronic Reporting Interface (VALERI) will be unavailable for loading servicing data. VALERI will be offline on the following dates; Aug. 4, 8 p.m. to Aug. 5, 11:59 p.m.; Aug. 11, 8 p.m. to Aug. 13, 12 noon; Aug. 18, 8 p.m. to Aug. 19, 11:59 p.m.; and Sept. 22, 8 p.m. to Sept. 23, 11:59 p.m. All times are EST. Senate Banking Panel Advances HUD Nominees. The Senate Committee on Banking, Housing and Urban Affairs has sent HUD nominations for consideration by the full Senate. On July 27, the committee approved by voice vote the nominations of J, Paul Compton Jr. and Anna Farias for HUD general counsel and assistant secretary for fair housing, respectively. Beal Rackleff’s nomination for HUD assistant secretary for community planning and development also was approved by voice vote ...


August 4, 2017 - Inside FHA/VA Lending

HUD Seeks OMB Clearance to Reinstate, Extend Data Collections

The Department of Housing and Urban Development is seeking public comment as well as approval from the Office of Management and Budget for a number of new or expired data collections relating to key FHA programs and issues. Out for a 30-day comment period are proposed data collections relating to the Home Equity Conversion Mortgage program, condominium project approval, claims and conveyance, and property inspection and preservation. Specifically, HUD has asked OMB to reinstate currently approved information collection, which is necessary to screen HECM applications to protect the FHA insurance fund, consumers and taxpayers. HUD also wants OMB approval to extend the forms used to determine the eligibility of borrowers and mortgage transactions for FHA insurance. In addition, HUD’s HECM counseling form was revised to include a property address line for purchase transactions and ...


August 4, 2017 - Inside FHA/VA Lending

U.S. Announces Settlements with Contractor, Condo Complex Owner

A property management contractor for the Department of Housing and Urban Development has agreed to pay $4.3 million to resolve allegations that it billed the agency for FHA-related work it did not perform in violation of the federal False Claims Act. Cityside Management Corp. of Manchester, NH, allegedly failed to inspect the work of third-party vendors that it hired to perform termite inspections, treatments and repairs on repossessed houses in HUD’s real estate-owned inventory, as required by its contract with HUD. HUD’s inspector general investigated the case and referred it to the Department of Justice. Following the financial crisis, HUD held title to a large number of foreclosed homes acquired by borrowers with FHA financing. HUD contracted with various field service managers, including Cityside, to prepare the REO properties for resale. According to the Office of the U.S. Attorney for the ...


August 4, 2017 - Inside FHA/VA Lending

CA Wholesaler Unveils PACE Guidelines for FHA, VA Products

NewLeaf Wholesale has announced Property Assessed Clean Energy (PACE) guidelines for its FHA and VA mortgage products. PACE financing allows homeowners to retrofit their homes to make them more energy-efficient. The homeowner pays the loan as part of their property tax bill. In some states, PACE liens have superior status over all other liens, including a mortgage loan. A PACE assessment is a debt of property, where the obligation is tied to the property as opposed to the property owner. Hence, when the property is sold the new owner assumes the PACE lien. Last year, the FHA and VA issued guidance for approving purchase and refinance of mortgaged properties with PACE liens provided certain requirements are met. One requirement is that past due PACE loan amounts retain a first-lien position and this has raised some concern among industry groups that are opposed to ...


August 4, 2017 - Inside FHA/VA Lending

USMI Urges CFPB to Include Fed Agencies in ATR/QM Assessment

The private mortgage insurance industry urged the Consumer Financial Protection Bureau this week to consider including the qualified-mortgage standards of the FHA, VA and the U.S. Department of Agriculture in its assessment of the ability-to-repay/QM rule. In a comment letter, industry trade group U.S. Mortgage Insurers said it would be impossible to perform a full assessment of the ATR/QM rule without considering the different federal agency QM rules. If it does not expand the scope of its assessment, the CFPB should at least consider the impact the rules have on consumers in relation to the agency QM rules. In May, the CFPB notified stakeholders of its plan to evaluate the effectiveness of the ATR/QM rule in terms of its benefits and costs. Congress passed the Dodd-Frank Wall Street Reform and Consumer Protection Act in 2010, which established new standards for mortgage lending, including requiring lenders to assess consumers’ ability to repay. The statute also established a class of “qualified mortgage” loans that cannot have certain risky product features and are presumed to comply with the ATR requirement.


August 4, 2017 - Inside FHA/VA Lending

GNMA Fully Automates Platinum Securities Processing, Issuance

Ginnie Mae this week announced the full automation of Platinum securities processing and issuance – a key step in modernizing the agency’s outdated technology and infrastructure. Automation went into effect in mid-July and nearly $1 billion of the Platinum pools have been processed through the MyGinnieMae portal, the agency said in a statement. MyGinnieMae is a self-servicing portal that connects users and enables collaboration and the sharing of organizational knowledge, the agency explained. The year-to-date volume for Platinum mortgage-backed securities is $6.1 billion. Ginnie’s Multiclass Securities Program allows participating issuers to pool some of their MBS into a single Platinum trust, which issues securities based on the pool. A Platinum security is designed to improve liquidity of Ginnie MBS through trades or use in structured finance and repurchase transactions. Previously, Platinum products were ...


August 4, 2017 - Inside FHA/VA Lending

Senate Panel Unanimously Passes HUD FY 2018 Spending Package

The Senate Committee on Appropriations last week voted 31 to 0 to set aside $40.2 billion in discretionary spending for the Department of Housing and Urban Development for FY 2018. The full committee vote on July 31 followed a subcommittee vote earlier in the week. The Senate funding bill includes $400 billion in new loan commitments under the FHA Mutual Mortgage Insurance Fund, including the Home Equity Conversion Mortgage program, and $130 million for FHA’s administrative expenses. However, the bill did not grant a HUD request for authority to impose a lender fee to help cover FHA’s information technology upgrades, risk management and quality-assurance improvements. The House HUD spending bill provided $130 million for administrative costs and added another $5 million for IT enhancement. House appropriators passed their version late last month. The Senate bill also ...


August 4, 2017 - Inside FHA/VA Lending

Groups Seek Rule Change to Allow Private Flood Policies on FHA Loans

Industry groups representing lenders, real estate agents and insurance providers are urging the FHA to adopt a policy allowing borrowers to purchase private flood insurance on FHA-insured loans. In a recent letter, eight industry groups said FHA’s current stance of accepting only policies authorized by the National Flood Insurance Program contradicts Congress’ intent to encourage the use of private flood insurance and conflicts with current lender requirements. Congress is putting together a comprehensive legislative package of flood-insurance reforms, which would extend the NFIP for another five years and require lenders to accept private flood insurance to meet statutory flood-insurance requirements. The group said FHA’s current policy appears to conflict with lender requirements in the Biggert-Waters Flood Insurance Reform Act of 2012. A number of home-loan transactions have failed to ...


August 4, 2017 - Inside FHA/VA Lending

Correspondent Channel Held Up In Shifting 2Q17 FHA/VA Market

Correspondent-originated mortgages were the only segment of the VA market that saw an increase in activity during the second quarter, according to a new analysis and ranking by Inside FHA/VA Lending. Overall, VA loan securitization declined by 1.8 percent from the first to the second quarter of this year. But delivery of correspondent-originated VA loans was up 4.9 percent, while both the retail and wholesale-broker channels saw declines. It was a slightly different picture in the FHA segment of the Ginnie Mae mortgage-backed securities market. Overall volume was up 9.8 percent from the first quarter, with all three channels posting gains. Brokers saw the biggest increase in FHA business, with volume up 14.5 percent, although the correspondent channel also posted a 12.7 percent increase and remained the most active of the three production venues. Loan characteristics held steady in both ... [Charts]


August 4, 2017 - IMFnews

Red Hot Housing: July MBS Total the Largest Monthly Purchase-Mortgage Volume Since Loan-Level Data Became Available

Freddie’s purchase-mortgage business soared 17.1 percent from June to July, while Fannie’s was up 9.0 percent…


August 2, 2017 - IMFnews

Short Takes: Freddie Moves Closer to SFR Financing / Room for GSE Legislation to Get Done? / Michael Bright: Acting Ginnie Mae Chief / Applications Decline / A New Hire for Waterstone

Cowen & Co. analyst Jaret Seiberg believes the Senate Banking Committee remains on track to unveil GSE reform legislation late in the fourth quarter...


July 31, 2017 - IMFnews

Short Takes: Ginnie Loses Another One / CEO Background / From Mortgage Owner to ‘Life Coach’ / Kudos to Freedom and Fairway / A New Regional Hire for Stearns

Among the top 20 lenders in 2Q17, Fairway Independent Mortgage had the highest growth rate at 64.2 percent.


July 31, 2017 - IMFnews

Servicing Transfers Jump 22 Percent in 2Q17 as Major Players Unload Receivables

Movement Mortgage was the largest seller of MSRs through co-issuance deals…


July 26, 2017 - IMFnews

MRB Suspends Lender’s Authority to Originate, Service FHA Loans

HUD's MRB suspends Seckle Capital.


July 25, 2017 - IMFnews

IG: HUD Note Sales Program Operating With No Formal Procedures

An internal watchdog audit alleges that the Department of Housing and Urban Development has been auctioning distressed notes to investors with no formal guidance or procedures in place.


July 24, 2017 - IMFnews

VA Still Gaining Ground in Growing Ginnie Mae MBS Portfolio

One reason the VA market grows somewhat faster than the FHA is that it loses fewer loans to default.


July 21, 2017 - Inside FHA/VA Lending

Around the Industry

Bipartisan Flood Bill Introduced in Senate. The Senate Committee on Banking, Housing and Urban Affairs will soon consider a bipartisan bill introduced this week that would keep the National Flood Insurance Program funded for six more years and create new risk mitigation procedures for communities to follow. Senate Banking Committee Chairman Mike Crapo, R-ID, and ranking Democrat Sherrod Brown, OH, said the bill would serve as a template for consideration by the whole committee. The Senate bill does not include core provisions in the House version, including the development of a private flood insurance market to complement the NFIP. In addition, the bill does not call for cuts in the reimbursement rate for Write-Your-Own flood-insurance carriers that service NFIP policies. However, amendments are likely, according to Crapo and Brown. Meanwhile, the ...


July 21, 2017 - Inside FHA/VA Lending

Millennials Seeking to Buy Homes In Affordable Markets, Data Show

Affordability and job availability are driving millennials to seek homes in more affordable markets, particularly in the upper Midwest, according to Ellie Mae data for the month of May. Ellie Mae’s Millennial Tracker, which monitors millennial mortgage applications during specific times, found that the higher percentages of loans made to millennial borrowers are in Hutchinson and Austin, MN, and Wahpeton and Williston, ND. Anniston-Oxford-Jacksonville, AL, rounded out the top-five markets. Ellie Mae defines millennials as applicants born between 1980 and 1999. Data showed that 48 percent of millennial borrowers who closed loans in May were single. In Hutchinson, for example, the majority of borrowers were single men. “This suggests millennials may be embracing homeownership in these areas for reasons other than what we have historically seen, which was family formation,” explained ...


July 21, 2017 - Inside FHA/VA Lending

House Panel Earmarks $50 Million For Home Counseling Assistance

The House Appropriations Committee has recommended $50 million to fund the Department of Housing and Urban Development’s FY 2018 housing counseling assistance to homebuyers, homeowners and low and moderate-income renters. The allocation is $3 million more than the Trump administration had requested and $5 million below the amount appropriated for housing counseling in fiscal year 2017. In its budget report, the committee noted the continued improvement in the economy, which has resulted in fewer foreclosures. Foreclosure filings from 2016 were reported on 933,000 properties, representing a 10-year low and a 14 percent reduction from 2015, the report pointed out. “The foreclosure rate has stayed within a historically normal range for three years, even with the pipeline of legacy foreclosures resulting from the housing bubble,” it said. In addition, the bill retains language that ...


July 21, 2017 - Inside FHA/VA Lending

VA Emphasizes Need for Testing Individual Water Supply for Vets

The Department of Veterans Affairs is warning VA lenders to adhere strictly to the agency’s requirements for safe potable water for veteran homebuyers. The agency recently provided clarification and guidance concerning the testing of private, individual water-supply systems for properties backed by VA mortgage loans. The VA has long treated potable water as a health and safety issue, including as part of its minimum property requirements that water used for drinking, washing and other in-house uses must be safe for consumption. According to the guidance, which went into effect on July 19, 2017, a disinterested third party must perform all water testing. This includes the collection and transport of water samples from the supply source. Only the local health authority, a commercial testing laboratory, a licensed sanitary engineer, or any other party that is acceptable to the local health agency may test ...


July 21, 2017 - Inside FHA/VA Lending

VA Clarifies, Underscores Use of Tidewater Process in Appraisals

The Department of Veterans Affairs is ratcheting up enforcement of its so-called Tidewater process to prevent veterans from paying more than the appraised value of the property when using a VA loan. In recent guidance, the VA reaffirmed its 2003 Tidewater Appraisal Initiative to help reduce the number of cases where appraisers have been asked to reconsider their initial appraisal, which had come in below the sales price. The guidance emphasizes procedures for improving communication of new sales data to VA fee and staff appraisers for a reevaluation of the low initial appraisal. “These guidelines should help limit the number of cases that reach the reconsideration-of-value phase and also provide a more timely response to those cases that are submitted for reconsideration,” the VA explained. The Tidewater procedure provides a designated “point of contact” (POC) the opportunity to ...


July 21, 2017 - Inside FHA/VA Lending

RHS Spells out Review Procedures For Approved Lenders, Servicers

The U.S. Department of Agriculture’s Rural Housing Service has clarified procedures for reevaluating approved lenders’ and servicers’ eligibility under the RHS Single Family Housing Guaranteed Loan Program. The guidance also provides procedures for updating lender information. The RHS intends to review and document lender eligibility in accordance with regulation and program requirements to protect government assets and minimize taxpayer losses. Office of Management and Budget regulations require federal agencies to reevaluate and record lender and servicer eligibility every two years. “For the [USDA single family loan guarantee program], it requires making sure that lenders and servicers participating in federal credit programs meet all applicable financial and program requirements,” wrote Richard Davis, acting RHS administrator. To meet the requirements, lenders must ...


July 21, 2017 - Inside FHA/VA Lending

MRB Suspends Lender’s Authority To Originate, Service FHA Loans

The Department of Housing and Urban Development’s lender disciplinary arm, the Mortgagee Review Board, has suspended a Pennsylvania FHA lender from originating or underwriting any new agency-insured loans. In addition, HUD’s enforcement center suspended owner John Seckel from doing business with the federal government. According to HUD, Seckle Capital of Newton, PA, and its owner submitted statements and certifications purporting to show the firm was properly audited by independent certified public accountants, when, in fact, it was not. The MRB said Seckel and his firm engaged in a “years-long pattern” of deceit and falsehoods. The action is the result of HUD’s ongoing effort to hold the mortgage industry accountable for the loans it originates, underwrites or services. According to HUD’s Neighborhood Watch website, Seckel Capital has a compare ratio of 164 percent. Of the 557 loans the ...


July 21, 2017 - Inside FHA/VA Lending

HUD Note Sales Program Operating With No Formal Procedures, Says IG

An internal watchdog audit alleges that the Department of Housing and Urban Development has been auctioning distressed notes to investors with no formal guidance or procedures in place. In a recent audit report, the HUD Office of the Inspector General said the department did not conduct rulemaking or develop standards for its single-family note sales program. The IG said it performed the audit due to the large amount of FHA claims paid on note sales as well as public concerns over the creation and administration of the program. In addition, the IG has never audited the program. In 2002, HUD referred to the initial note sales program as the Accelerated Claims Disposition Demonstration Program. The department later renamed it the Loan Sales Program, and subsequently to its current name: Distressed Asset Stabilization Program. DASP accepts assignment of eligible, defaulted single-family mortgage loans in ...


July 21, 2017 - Inside FHA/VA Lending

House Appropriators Pass HUD Funding Bill, Reject Proposed Fee

The House Appropriations Committee this week approved a FY 2018 spending bill for the Department of Housing and Urban Development with a $135 million allocation for information technology upgrades in lieu of a proposed lender fee. The set-aside also covers quality control and risk management improvements as well as other administrative costs. The recommended funding is $5 million more than the FY 2017 enacted level for administrative contract expenses and $25 million below the budget request. Approved by a vote of 31 to 20, the bill provides HUD with $38.3 billion in discretionary spending for FY 2018, down $487 million from the current level. The House bill authorizes $400 billion for loan guarantees under the FHA Mutual Mortgage Insurance Fund, including the Home Equity Conversion Mortgage program, and $500 billion for Ginnie Mae. Ginnie will also receive $25.4 million for agency staffing, which is ...


July 21, 2017 - Inside FHA/VA Lending

VA Still Gaining Ground in Growing Ginnie MBS Servicing Portfolio

The VA home loan guaranty program continued to grow faster than the FHA program during the second quarter of 2017, according to a new analysis and servicer ranking by Inside FHA/VA Lending. At the end of June, Ginnie Mae mortgage-backed securities pools included $548.04 billion of VA loans, a 3.3 percent increase over the previous quarter. Compared to a year ago, the volume of VA loans was up a hefty 15.6 percent. The $1.055 trillion of FHA loans in outstanding Ginnie MBS was still nearly twice the volume of VA loans. But the FHA total was up a more subdued 1.8 percent from March and by 5.4 percent from a year ago. One reason the VA market grows somewhat faster than the FHA is that it loses fewer loans to default. For starters, the VA delinquency rate is lower – 3.03 percent in the second quarter of 2017 vs. 5.52 percent for FHA. Over the past three and a half years, the ... [ Charts]


July 20, 2017 - IMFnews

Ginnie Mae Continues to Lead the Pack in Agency Servicing Growth

Outstanding MBS servicing at Fannie actually declined slightly in the second quarter…


July 19, 2017 - IMFnews

Short Takes: A Bulk MSR Deal from MountainView / Proposed HUD Lender Fee Is Cut From Spending Measure / Invictus Readies Nonprime MBS Deal / A Promotion at loanDepot

Another nonprime MBS deal is ready to hit the market, this one from Invictus Capital Partners...


July 17, 2017 - IMFnews

MBS Trading Volume Increased in June, but…

It hasn’t been pretty the last couple of weeks for MBS values…


July 17, 2017 - IMFnews

Retail Channel Losing Steam in 2Q17 Agency Business; Brokers Rising

Agency mortgages produced by mortgage brokers actually rose 4.4 percent in the second quarter, even as the overall market was falling 6.1 percent.


July 13, 2017 - IMFnews

Ginnie Mae MBS Issuance Rides the Tide of Rising Home Sales

The top three Ginnie Mae issuers in 2Q17 were PennyMac, Wells Fargo and Freedom Mortgage…


July 12, 2017 - IMFnews

HUD Mortgagee Review Board Suspends PA Lender Seckel Capital

As IMFnews went to press, Seckel was said to be in a meeting and could not be reached for comment.


July 10, 2017 - IMFnews

VRM Wins 10-Year Contract to Oversee REO, Service VA Loans

The deal was negotiated from a previous five-year contract that was awarded to VRM…


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