FHA, VA

Browse articles from all of our Newsletters related to FHA, VA.

December 14, 2018 - Inside FHA/VA Lending

Around the Industry

Mortgage broker trade group introduces NAMB All-In. Genworth launches risk-based pricing engine. VA updates fee-cost schedule. Industry groups pressure Senate to confirm Trump nominee for GNMA.


December 7, 2018 - Inside Mortgage Trends

Retail Lost Share in Major Product Groups

Retail originations declined more than third-party production in the three major mortgage-product categories during the third quarter of 2018, according to a new analysis by Inside Mortgage Trends. Based on survey data from a broad cross-section of lenders, retail originations fell 8.8 percent from the second to the third quarter. The wholesale-broker sector was down 1.9 percent, while correspondent production posted a 1.9 percent increase. The data ... [Includes two data charts]


November 30, 2018 - Inside FHA/VA Lending

FHA Updates EAD System, Other Appraisal-Related Components

The FHA has announced plans to improve the web-based system lenders use to submit appraisal reports to the agency.


November 30, 2018 - Inside FHA/VA Lending

RHS Clarifies Short Sale Rules, REO Purchases by Nonprofits

The U.S. Department of Agriculture’s Rural Housing Service has issued guidance regarding short sales and sale of real estate-owned properties backed by rural housing loans.


November 30, 2018 - Inside FHA/VA Lending

Investors Find Quicker Alternative to Nonperforming, REO Loan Sales

The Department of Housing and Urban Development has not conducted a single nonperforming loan sale in 2018 because apparently investors have found a quicker way to obtain newly foreclosed properties.


November 30, 2018 - Inside FHA/VA Lending

MMIF Audit Report Suggests FHA May Consider Shrinking Footprint

In an analysis of FHA’s fiscal 2018 audit of the Mutual Mortgage Insurance Fund, analysts believe the Department of Housing and Urban Development may be inclined to shrink FHA’s footprint modestly given the risk profile of its new business.


November 30, 2018 - Inside FHA/VA Lending

Reduced Volume Trend Continues as HECM YoY Production Drops

Home Equity Conversion Mortgage originations saw a modest 4.7 percent sequential fall in the third quarter as the downward volume trend for reverse mortgages continued. [Includes one data chart.]


November 30, 2018 - Inside FHA/VA Lending

VA Plans Cash-Out Refi Rulemaking to Prevent Predatory Practices

The Department of Veterans Affairs this week laid the groundwork for changes to its current rules on VA-guaranteed cash-out refinance loans.


November 30, 2018 - Inside FHA/VA Lending

FHA Forward Volume Down Sharply, Weak Purchase Business Fuels Fall

FHA forward mortgage production plunged in the third quarter, precipitated by a substantial drop in purchase activity. [Includes two data charts.]


November 22, 2018 - Inside Mortgage Finance

FHA Seeks Broader, Flexible Authority for Mortgagee Review Board to Ease FCA Use in Lender Enforcement

The FHA is calling for broader statutory authority for the Mortgagee Review Board in determining the type and amount of penalties the board can assess to strengthen lender enforcement and eliminate the need for False Claims Act cases.


November 16, 2018 - Inside FHA/VA Lending

VA Clarifies Impact of Claims Payment on Vets’ Entitlement

The Department of Veterans Affairs has issued guidance clarifying the effect of guaranteed claim payments on a veteran’s home-loan entitlement. According to the guidance, a veteran loses a part or all of his VA home-loan benefit when the agency pays a claim on a loan terminated by a foreclosure, short sale or deed-in-lieu of foreclosure. For VA loans originated on or after Jan. 1, 1990, the VA will no longer establish debts against veterans after it pays a claim to reimburse a servicer for its loss. Reimbursement could be up to the maximum guaranty amount. On the other hand, the agency may establish a debt against the veteran and pursue collection if the loan was originated prior to Jan. 1, 1990. If the veteran wants to reuse the VA home-loan benefit, he or she must fully reimburse VA for its losses in order to restore full entitlement. The loss only affects the veteran’s entitlement under the VA Home Loan guaranty program and ...


November 16, 2018 - Inside FHA/VA Lending

GNMA’s Liquidity Concerns Prompt Demand for Contingency Plans

Increasingly worried about the financial condition of its largest nonbank issuers amid declining market conditions, Ginnie Mae in late October shot off a liquidity letter to 14 companies, asking them to develop contingency plans. The identity of the firms was not revealed to Inside FHA/VA Lending, but it’s no secret which companies rank among the top echelon of issuer/servicers. The five largest nonbank Ginnie MBS servicers as of Sept. 30 are PennyMac Financial Services, Lakeview Loan Servicing, Freedom Mortgage, Quicken Loans and Mr. Cooper. According to the letter, a copy of which was obtained by this publication, Ginnie wants the companies to develop strategies to right-size their operations. One of the agency’s goals is to lay the groundwork for financial stress tests that all issuer/servicers eventually must meet. Ginnie expects to sit down with the executive management teams of the ...


November 16, 2018 - Inside FHA/VA Lending

Ginnie Mae Continues to Tighten Issuer Standards, Accountability

This week, Ginnie Mae issued an all-participants memo dictating new standards for firms seeking to become issuers, including the stipulation that applicants submit to a corporate credit evaluation. Ginnie said the financial exercise will be “similar to those employed by credit rating agencies.” The evaluation will determine whether an applicant is qualified to be an issuer or whether additional criteria should be imposed even if the basic standards are met. Applicants that rely on a subservicer arrangement will be scrutinized even more. The bulletin also notes that, effective immediately, the agency is implementing new notification requirements for MBS issuers engaged in “certain subservicer advance or servicing income agreements, which do not require prior Ginnie Mae approval, but can impact an issuer’s ongoing liquidity position and financial obligations.” While Ginnie currently permits subservicers to advance ...


November 16, 2018 - Inside FHA/VA Lending

FHA Seeks to Strengthen MRB Authority to Ensure Compliance

The FHA is recommending a statutory change to strengthen the Mortgagee Review Board’s authority in lender enforcement. The agency discussed the merits of enhancing MRB’s powers in a 2018 audit report on the health of the Mutual Mortgage Insurance Fund. While the goal of a stronger MRB is not new, it has taken on a new urgency in discussions between the Department of Housing and Urban Development and the Department of Justice regarding the use of the False Claims Act in FHA enforcement. The DOJ and HUD have used the statute to pursue lenders that have inflicted millions of dollars in losses on FHA due to misrepresentation, carelessness and generally sloppy underwriting. Lenders, on the other hand, have complained about the agencies’ indiscriminate use of the FCA against even the slightest technical error. The FCA and its treble-damages provisions have squeezed billions of dollars ...


November 16, 2018 - Inside FHA/VA Lending

HUD Works on Deal with DOJ to Limit FCA Use to Serious Violations

A memorandum of understanding is in the works at the Department of Housing and Urban Development to clarify the use of the False Claims Act in FHA enforcement. At the same time, the department is considering seeking statutory authority for the Mortgagee Review Board to impose stiffer penalties on lenders for violations that do not require a False Claims Act response. (See following story.) During a public policy luncheon hosted by the Washington-based Women in Housing and Finance this week, HUD Assistant Secretary and FHA Commissioner Brian Montgomery said the draft MOU would provide a “level of fairness” in terms of whether the FCA or some other mechanism would be appropriate. Montgomery did not discuss specifics but said the memo would ensure that HUD has a say in what type of offense would qualify for a false claim. Montgomery gave no timeframe for when the ...


November 16, 2018 - Inside FHA/VA Lending

MMIF is Sound, Latest Audit Finds; Forwards Cover More HECM Losses

The FHA’s Mutual Mortgage Insurance Fund is generally healthy but for its Home Equity Conversion Mortgage program, according to the latest FHA audit of the MMIF. In its 2018 report to Congress this week, the Department of Housing and Urban Development had good and bad news regarding the financial condition of the insurance fund. The good news is that the economic value of the MMIF, which backs the FHA’s single-family loan programs, increased to $34.7 billion in fiscal 2018 from $26.7 billion a year ago. Total capital resources rose to $49.2 billion from $40.9 billion during the same period. For the fourth consecutive year, the fund exceeded its statutory capital reserve ratio of 2.00 percent. The ratio rose to 2.76 percent in 2018 from 2.18 percent last year. Premium reductions, had they been in effect, would have reduced the fund’s economic net worth and dropped its capital ratio, industry ...


November 16, 2018 - Inside FHA/VA Lending

VA Volume Slumps as Streamlined Refi Business Falls Sharply in 3Q18

VA mortgage originations fell significantly in the third quarter of 2018 due to a decline in purchase loans and a sharp drop in refinancing from the previous quarter. Rising interest rates and regulatory restrictions were mostly to blame, said lenders. VA production during the third quarter was $40.2 billion, down 21.0 percent from the quarter ago. Volume in the first nine months of 2018 dropped a mere 0.7 percent from the same time period last year. Purchase loans, which comprised 75.3 percent of VA’s guaranty business, were down 12.6 percent. On the other hand, year-over-year production increased 14.0 percent. VA refinance was down 39.0 percent from the second quarter and 18.1 percent on a year-to-date basis. The decline was fueled primarily by an 80.8 percent drop in VA streamline refis or Interest Rate Reduction Refinance Loans from the second quarter. IRRRL endorsements in the third quarter ... [Charts]


November 15, 2018 - Inside Mortgage Finance

FHA’s FY 2018 Audit Shows MMIF in Great Shape, HECM Continues to Bleed Forward Portfolio

Results of an annual audit of the FHA’s Mutual Mortgage Insurance Fund turned out better than expected, showing improvements in the fund’s economic net worth and its closely watched capital reserve ratio. [Includes one data chart.]


Poll

With loan volumes declining, does your shop have plans to enter the non-QM lending market in 2019?

Yes, definitely. A solid move forward.

45%

Yes, but only incrementally.

16%

We’re pondering a move into non-QM, but haven’t made up our mind.

13%

No, definitely not. We view it has too risky.

26%