FHA & Ginnie Mae

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

January 19, 2018 - IMFnews

Short Takes: GSE Reform is Dead, Here’s Why / Okay, Maybe a 20 Percent Chance of Passage / What’s Riskier? GSE Stock or Bitcoin? / Nonbank CEO Ready to Depart / Brett Hively Resurfaces / FHA and the Government Shutdown

The White House may be committed to GSE reform, but Republicans are not...

January 18, 2018 - IMFnews

The Trend is Clear: Nonbanks Poised to Have a 50 Percent Agency MSR Share

The nonbank share of agency servicing grew by 4.7 percentage points during 2017.

January 17, 2018 - IMFnews

Oh Carol! Former FHA Chief’s Plan to Restructure the Government MI Garners Mixed Reviews

Galante is a former FHA commissioner who presently serves as faculty director of the Terner Center for Housing Innovation at the University of California Berkeley. She also sits on the board of Ocwen Financial.

January 17, 2018 - IMFnews

HUD Secretary Carson Sets Up ‘Order of Succession’ at Ginnie Mae. First Up: Michael Bright

The Trump White House was slated to nominate mortgage banker David Kittle to head the agency but back in November he grew tired of waiting and withdrew his name from consideration.

January 16, 2018 - IMFnews

Short Takes: GSE Reform, Yes. Passage? No / Galton’s Return to Nonprime / Citi’s Incredibly Shrinking MSR Portfolio / Legislative Reg Relief On the Way? / English Wants Expedited Review in CFPB Appeal

GSE reform may emerge from the Senate Banking Committee, but as for final passage...

January 16, 2018 - IMFnews

Ginnie Mae MBS Program Faltered in 2017…

The agency – which still doesn’t have a permanent president – issued $443.2 billion of MBS backed by forward single-family mortgages in 2017, a 10.8 percent decline from the previous year.

January 12, 2018 - Inside FHA/VA Lending

Around the Industry

FHA Announces Revised Method for Calculating Initial MIP for HECM Refis. FHA has modified the formula for calculating the initial mortgage insurance premium for Home Equity Conversion Mortgage refinances with case numbers assigned on or after Sept. 19, 2017. The formula was modified on Nov. 14, 2017. The change conforms to the final rule FHA implemented last year to strengthen the HECM program. The revised formula has been posted on FHA’s HECM page on hud.gov, FHA Connection Release Notes, dated Dec. 28, 2017. The FHAC Release Notes outline the changes and processing instructions for lenders to calculate the initial MIP for HECM refis. HUD Releases Guide to Help Borrowers and Disaster Victims Avoid Foreclosure. The Department of Housing and Urban Development has released the Homeowners Guide to Success to help struggling homeowners and ...

January 12, 2018 - Inside FHA/VA Lending

Florida District Court Allows U.S. to Intervene in FHA FCA Suit v. BofA

A federal district court in Florida has agreed to a government motion to intervene in a False Claims Act lawsuit against Bank of America in order to reach a settlement on behalf of a relator. Bruce Jacobs, a foreclosure attorney and relator in South Florida, filed the lawsuit. A former Miami prosecutor, he now represents homeowners in foreclosure proceedings initiated by financial institutions, including BofA. In his lawsuit, Jacobs alleged that BofA submitted false claims in violation of the FCA. Specifically, the bank allegedly submitted endorsements with unauthorized signatures and false mortgage assignments that would confer standing to foreclose. In addition, Jacobs additionally asserted a reverse FCA claim alleging that BofA made false statements when entering into the 2012 National Mortgage Settlement (NMS) consent judgment with the U.S. government. The landmark $25 billion settlement with ...

January 12, 2018 - Inside FHA/VA Lending

VA Clarifies Buyout Criteria for Uninsured, Unguaranteed Loans

Ginnie Mae is redefining the term “defective mortgage” to remind issuers of their obligations when confronted by a mortgage that does not have federal insurance or guarantee. The action also clarifies options issuers may consider in dealing with defective mortgages. Under their guarantee agreement with Ginnie, issuers are required to cure, buy out or replace single-family mortgages or manufactured home loans that are missing the requisite FHA insurance or VA or U.S. Department of Agriculture guarantee within 120 days after the issue date of the mortgage-backed securities. Ginnie made clear that mortgages that do not have federal insurance or guarantee by the deadline for final certification of the related pool or loan package are defective. In addition, mortgages that have been rejected by FHA, VA or USDA, or for which federal insurance or guarantee have been withdrawn, are defective as ...

January 12, 2018 - Inside FHA/VA Lending

VA Clarifies Rules for Allowing Use Of Third-Party Verification Services

VA lenders may use third-party vendors to verify borrower income, employment and asset information subject to certain conditions, according to the Department of Veterans Affairs. Officials issued the clarification in response to lender inquiries regarding the use of third parties to determine if a borrower qualifies for a VA loan. The agency said it would accept third-party verifications if lenders are fully responsible for verifying the accuracy of information the borrower provided in the loan application. Lenders must initiate and receive all verifications of employment and deposits, requests for credit reports, and credit information. When a real estate broker/agent or any other party requests information regarding borrower income, employment or personal assets, the lender must identify the requester as its agent and ensure that any report is returned directly to them. In addition, the lender must disclose the ...

January 12, 2018 - Inside FHA/VA Lending

Galante’s FHA Restructuring Plan Elicits Bland Stakeholder Response

A former FHA commissioner’s proposal to restructure FHA as part of broader housing-finance reform has received mixed responses from industry stakeholders and the Department of Housing and Urban Development. While participants in a recent panel discussion hosted by the Urban Institute praised the proposal, they admitted to still being unsure about FHA’s role in a revamped world of Fannie Mae and Freddie Mac, and a single mortgage-backed security. The recommendation for a reconstituted FHA is part of a paper presented for debate at the Urban Institute this week by Carol Galante, faculty director of the Terner Center for Housing Innovation at the University of California Berkeley, and former head of FHA during the second Obama administration. Under Galante’s proposal, all of FHA’s mortgage insurance programs would remain with the agency while rental assistance and other ...

January 12, 2018 - Inside FHA/VA Lending

GSE Housing Reform, Enforcement Highlight FHA, VA Outlook in 2018

2018 might not turn out to be a record-breaking production year for FHA and VA, but it could become significant in terms of enforcement and housing finance reform, according to industry stakeholders. Ed Pinto, codirector of the American Enterprise Institute’s International Center on Housing Risk, expects a slight increase in FHA’s and VA’s mortgage unit production and stronger dollar volumes due to rising house prices. Pinto believes loose purchase lending, particularly by FHA, and declining housing inventory are driving housing prices. This in turn results in FHA/VA cash-out refinancing at very high loan-to-value ratios, which helps feed the general economy but makes FHA lending riskier, he said. “We see a stronger demand for housing amid constrained housing supply,” said Pinto. “We’re seeing this vicious cycle of purchase transactions becoming more risky, cash-out transactions increasing in ...

January 12, 2018 - Inside FHA/VA Lending

VA, Ginnie Mae Working on Long- Term Cures to Rapid Refinancing

Ginnie Mae and the Department of Veterans Affairs have announced additional measures to curb serial refinancing of VA loans. Testifying before a House Veterans Affairs subcommittee this week, officials from both agencies said the latest measures will complement guidelines Ginnie issued last year to deal with the loan-churning problem. Lenders urged Congress and the two agencies to be cautious in prescribing fixes that could potentially cut off VA funding. Jeffrey London, director of the VA Loan Guaranty Service, said a proposed rule that includes a net tangible benefits test for veterans as well as seasoning and recoupment requirements will be issued soon. The VA is also planning to require upfront lender disclosure of the terms and benefits of a streamline or cash-out refi, including the recoupment period of the new transaction. Even though serial refinancing is not systemic to the VA portfolio, it has grown in ...

January 12, 2018 - Inside FHA/VA Lending

Bipartisan Bill Introduced to Deal With VA’s Vexing Churning Problem

Senate lawmakers this week introduced bipartisan legislation to protect veterans and servicemembers from predatory refinancing schemes. Introduced by Sens. Tom Tillis, R-NC, and Elizabeth Warren, D-MA, the bill would require lenders offering streamline or cash-out refinancing to demonstrate a material benefit to veterans with a VA loan. The Protecting Veterans from Predatory Lending Act reflects measures Jeffrey London, director of VA’s Loan Guaranty Service, talked about when he testified during a hearing on loan churning before the House Veterans Affairs Subcommittee on Economic Opportunity (See next story.) Prior to submitting a refi loan for a VA guarantee, a lender would be required to certify that all fees associated with the transaction would be recouped by the veteran through lower monthly payments within 36 months. Such fees would include closing costs and any expenses other than ...

January 12, 2018 - Inside FHA/VA Lending

Ginnie MBS Program Faltered In 2017, Refi Flow Up in 4Q17

Ginnie Mae set records for new issuance of single-family mortgage-backed securities in 2015 and 2016, but production sagged last year, according to a new analysis and ranking by Inside FHA/VA Lending. The agency issued $443.20 billion of MBS backed by forward single-family mortgages in 2017, a 10.8 percent decline from the previous year. Including FHA reverse mortgages and that are not truncated, 2017 issuance fell 10.3 percent to $455.00 billion. Meanwhile, the private mortgage insurance business – based on Fannie Mae and Freddie Mac MBS data – saw a smaller decline of 5.0 percent from 2016 to last year. The VA program generally held up better than the FHA program during the fourth quarter, when refinance lending was climbing. But the FHA had a better year overall despite some loss of market share in purchase-mortgage activity. Deliveries of FHA loans into ... [ Charts ]

January 11, 2018 - Inside Mortgage Finance

Galante Paper Recommends Restructuring FHA As a Self-Sustaining Government Corporation Within HUD

A former FHA commissioner called for the restructuring of the agency as a government corporation within the Department of Housing and Urban Development with its own separate appropriation, budget control and risk-management capabilities.

January 11, 2018 - IMFnews

Agencies to Ramp Up Anti-Churning Efforts in 2018

Ginnie Mae and the Department of Veterans Affairs have announced additional measures to curb serial refinancing of VA loans. Testifying before a House Veterans Affairs subcommittee this week, officials from both agencies said the latest measures will complement guidelines Ginnie issued last year to deal with the loan churning problem.

January 10, 2018 - IMFnews

Housing Finance Reform Must Include FHA, Panelists Say

Panelists at an Urban Institute event this week concluded that there can’t be a housing finance reform discussion without including the FHA. Carol Galante, former FHA commissioner during the Obama administration, said it’s important to make sure changes to the government-sponsored enterprises don’t unintentionally impact the FHA.

January 9, 2018 - IMFnews

In the Wake of Program Changes, HECM Lending Declines in 3Q17

The origination of reverse mortgages fell by 7.3 percent on a sequential basis in the third quarter of 2017 in the wake of changes made to the program by FHA.

January 3, 2018 - IMFnews

IMA Launches First MSR Auction of the New Year

The seller will consider separate bids on the conventional and government portions…

January 3, 2018 - IMFnews

Notwithstanding Efforts to Resolve FCA Issue, Lenders Remain at Risk

Aggressive FCA enforcement and steep settlement amounts have caused some banks to exit from the FHA market.

January 3, 2018 - IMFnews

FHA Nominee Montgomery Has to Resubmit Financials. A March Seating?

Like scores of other Trump appointees, a final vote on Montgomery’s nomination as assistant secretary for Housing was not acted upon by yearend…

December 29, 2017 - IMFnews

HUD IG Anxious About Legacy Tech Systems; 87 Percent are ‘Old’

What could go wrong? For starts, FHA might not be able to pay claims…

December 29, 2017 - IMFnews

MBS Analysis: Looks Like the GSEs are Taking Market Share from FHA

Wells Fargo, Quicken, and United Wholesale Mortgage are the top three firms originating these low-downpayment loans…

December 27, 2017 - IMFnews

Correspondent Channel Gains Market Share in Government-Insured Mortgage Market

Through three quarters this year, retail originations fell 20.2 percent while brokers saw a 10.3 percent production drop and correspondent lending declined by only 1.8 percent.

December 26, 2017 - IMFnews

FHA to Update FHA Connection for New HMDA Data, Eventually

Certain temporary modifications have been made to allow lenders to submit demographic information if the currently available fields in the system match the data submitted. Otherwise, just leave the fields blank, according to the FHA.

December 22, 2017 - Inside FHA/VA Lending

Around the Industry

A roundup of news impacting FHA/VA lending.

December 22, 2017 - Inside FHA/VA Lending

No Agreement on Stopgap Funding As Government Shutdown Looms

Congressional leaders are working behind closed doors on a stopgap-spending bill that would prevent a government shutdown and keep federal agencies operating past Dec. 22.

December 22, 2017 - Inside FHA/VA Lending

Wintrust Announces Agreement to Purchase VA Lender’s Assets

Wintrust Financial Corp. has announced an agreement to purchase certain assets and assume certain liabilities of iFreedom Direct Corp., which originates VA-backed loans as Veterans First Mortgage.

December 22, 2017 - Inside FHA/VA Lending

GAO Asks Congress to Specify Conditions MMIF Can Survive

The Government Accountability Office, in a new report, urged Congress to specify the economic conditions it believes the FHA mortgage insurance fund can withstand without supplemental funds.

December 22, 2017 - Inside FHA/VA Lending

VA Announces New Disaster Loan Modification Option for Servicers

The Department of Veterans Affairs has announced a new disaster-related loan modification option for servicers to use to help affected borrowers.

December 22, 2017 - Inside FHA/VA Lending

VA Places Qualified Mortgage Rule, Allowable Fees on Its 2018 Agenda

The Department of Housing and Urban Affairs plans to act on two new rules in 2018 relating to allowable fees and charges on VA loans as well as the type of loans that are “qualified mortgages.”

December 22, 2017 - Inside FHA/VA Lending

Ginnie Mae’s Latest Anti-Churning Measures Presage More Changes

Ginnie Mae’s latest efforts to rein in serial VA refinancing and rapid prepayments in mortgage-backed securities pools augur additional changes to pooling and refi requirements at Ginnie and the Department of Veterans Affairs, analysts said.

December 22, 2017 - Inside FHA/VA Lending

Issuance of MBS Backed by USDA Loans Increases in Third Quarter

Issuance of mortgage securities backed by USDA loans rose 9.3 percent in the third quarter from the prior period.

December 22, 2017 - Inside FHA/VA Lending

HECM Originations Down in 3Q17, 9-Month Total Up Year-Over-Year

New Home Mortgage Equity Conversion production fell in the third quarter even as changes to the program, including a 200 basis point increase in the upfront HECM insurance premium, took hold in September, according to Inside FHA/VA Lending’s analysis of FHA reverse-mortgage activity.

December 22, 2017 - Inside FHA/VA Lending

Correspondent Channel Gains Share in Government Market

Correspondents, which account for a large percentage of government-insured lending, saw their share grow in 2017 even as retail went through a production slump, according to an analysis by Inside FHA/ VA Lending.

December 22, 2017 - Inside FHA/VA Lending

Notwithstanding Efforts to Resolve FCA Issue, Lenders Remain at Risk

Lenders continue to be hit with steep False Claims Act penalties despite assurances by Housing and Urban Development Secretary Ben Carson that he would address the FCA issue.

December 22, 2017 - Inside FHA/VA Lending

Court Raises Lenders’ Chances of Surviving a False Claims Act Suit

Mortgage lenders and servicers chalked up a win following a federal appeals court decision that would make it harder for the government and whistleblowers to pursue a claim under the False Claims Act.

December 21, 2017 - IMFnews

Ginnie Mae – the Fastest-Growing Component of the Agency MSR Market

While combined GSE servicing still accounted for a hefty 44.9 percent of single-family mortgages, it has continued to drift lower over the course of 2017…

December 19, 2017 - IMFnews

Short Takes: Money Source Sets its Sights on Being a $100B Servicer / RoundPoint Looks to Add Contracts / FHA Defaults Spike, Reason: Hurricanes / MIAC Selling Whole Loans / Ellington’s CFO Sets Retirement Date

Overall, The Money Source expects to hire more than 400 new team members in 2018...

December 18, 2017 - IMFnews

Ginnie’s Effort to Rein In Rapid Refis on VA Loans: More to Come, for Sure

Ginnie’s Dec. 7 memo to issuers outlines the new pooling changes, along with additional measures…

December 15, 2017 - IMFnews

Continued Growth for Agency MBS in 3Q17

The fastest-growing segment is the Ginnie Mae market…

December 12, 2017 - IMFnews

Senate Vote on FHA Nominee Could Come Before Yearend

If Montgomery garners final approval, HUD Secretary Ben Carson will begin tackling key issues, including finalizing new condominium rules, dealing with reverse mortgage losses and more…

December 11, 2017 - IMFnews

Phoenix Capital Auctioning Off Bulk MSR Package

The seller of the MSR package is looking for a final sale date of Jan. 31…

December 11, 2017 - IMFnews

VA Originations Increased by Almost 12 Percent in 3Q17; A Big Gain for Navy Fed

USAA reported a 17.0 percent sequential drop in VA lending while Navy Federal boosted production by an impressive 51.1 percent.

December 8, 2017 - Inside FHA/VA Lending

Around the Industry

FHFA Announces Maximum Conforming Loan Limits for 2018. On Nov. 28, the Federal Housing Finance Agency announced the maximum baseline loan limits in 2018 for one-unit properties, which are increasing to $453,100, and up to $679,650 in most high-cost areas. Loan limits may be higher for Alaska, Hawaii, Guam and the U.S. Virgin Islands. TOTAL Scorecard Database Upgrade Postponed. FHA has postponed its planned upgrade of the TOTAL Scorecard database that was scheduled initially on Nov. 22, 2017. Additional details will be forthcoming. VA Data Collection: Lender Satisfaction Survey. The VA is seeking approval from the Office of Management and Budget to conduct a survey to gauge lender satisfaction with the various aspects of the VA Home Loan Guaranty program. PennyMac Provides Update to FHA DTI Overlay. Previously, PennyMac’s debt-to-income ratio requirements for ...

December 8, 2017 - Inside FHA/VA Lending

VA’s National Portfolio Servicer Farms Out Work to Third Party

Vendor Resource Management, which the VA hired in June to service its nationwide mortgage portfolio and real estate-owned assets, has subcontracted a significant portion of the servicing to BSI Financial Services. According to VRM, BSI took over the servicing of the VA’s national portfolio beginning Dec. 1, 2017. VRM retained the REO servicing. VRM was first awarded the servicing contract in 2012, and the company initially subcontracted Ditech Financial to service VA’s larger national portfolio. The contract was later amended to facilitate a pilot whereby a portion of VA properties would be managed under the award. A new 10-year contract was awarded subsequently to VRM, which became effective on July 1, 2017. Based in Irving, TX, BSI Financial is a loan subservicer and a provider of technology and outsourcing services to banks and institutional investors in the ...

December 8, 2017 - Inside FHA/VA Lending

Senate Vote on FHA Nominee may Occur Before Yearend, Says Source

The Senate could vote on Brian Montgomery’s nomination as FHA commissioner and assistant secretary for housing before the end of the year. The nomination appears to be on a fast track to get Montgomery, a mortgage industry and FHA veteran, on board at the Department of Housing and Urban Development by early January, according to an industry participant who requested anonymity. Last week, the Senate Committee on Banking, Housing and Urban Affairs voted 18 to 5 to advance Montgomery’s nomination. Twelve Republicans and six Democrats voted in favor of the nominee. Sens. Sherrod Brown, D-OH, and Elizabeth Warren, D-MA, opposed Montgomery’s nomination due to concerns that his work as a private consultant with the mortgage industry might influence his judgment as FHA commissioner. Montgomery, a principal with The Collingwood Group, is no stranger to the job. He served as ...

December 8, 2017 - Inside FHA/VA Lending

Rural Purchase Loans Up, Denial Rates High for Rural Minorities

Rural home purchase lending rose for the fifth straight year in 2016 although volume remains below pre-recession levels, according to new research by the Housing Assistance Council based on Home Mortgage Disclosure Act data. HAC, a nonprofit organization that supports and tracks affordable housing efforts in rural areas, estimated that 55 percent of the 1.05 million rural home loans originated last year were first-lien purchase mortgages. The increase was substantial compared to 2012 and 2013, when two-thirds of rural originations involved refinance, the group noted. The U.S. Department of Agriculture guaranteed 9 to 12 percent of all rural home purchase loans originated in each of the last three years, the study found. Of the 16.3 million HMDA submissions by covered institutions, an estimated 2.0 million involved funding for homes in rural or small-town communities, researchers found. While mortgage activity ...

December 8, 2017 - Inside FHA/VA Lending

USDA Loan Guarantees Down Slightly As of End of October

The U.S. Department of Agriculture has provided guarantees to 10,366 rural mortgage loans under its Section 502 Single Family Housing Guarantee program in 2017. As of the end of October, USDA provided $1.5 billion in rural home loan guarantees, down from $1.6 billion (11,678 loans) at the same time last year. In addition, USDA guaranteed more than $55.1 million of loans made under the Section 502 Direct program, which offers mortgages for low- and very low-income homebuyers in rural areas. Borrowers with very low-income account for 36.2 percent of loans under the program. Furthermore, the USDA guaranteed 66 repair-and-rehabilitation loans totaling $385,836, up from this time last year. No grants were obligated in October. For its multifamily housing program, the USDA obligated 188 rural housing vouchers totaling $762,506 as of the end of October. No vouchers were obligated in the ...


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