Ginnie Mae Issuers

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

July 7, 2017 - Inside FHA/VA Lending

Around the Industry

Chicago HECM Lender Arraigned on Fraud Charges. Mark Steven Diamond, a mortgage loan originator with offices in Chicago and Calumet City, IL, was arraigned on fraud charges in connection with a $7 million reverse mortgage scheme that targeted elderly homeowners and FHA lenders. According to the Department of Justice, Diamond deceived lenders into making FHA-insured reverse mortgage loans to homeowners who did not apply for a loan or had been beguiled to do so by the smooth-talking suspect. Diamond allegedly pocketed title-company checks intended for the borrowers, with the help of an unindicted co-schemer. Cynthia Wallace, who posed as a representative of the Department of Housing and Urban Development, was indicted along with Diamond. Using at least three aliases, Wallace allegedly collected money from victims for home repairs, which she claimed Diamond would ...


July 7, 2017 - Inside FHA/VA Lending

Penny Raises Funding Capacity by Altering Repo Pact Terms with CS

PennyMac has revised master mortgage repurchase agreements with Credit Suisse to increase its funding capacity for new loan originations and acquisition of mortgage servicing rights, the company disclosed in a recent filing with the Securities and Exchange Commission. The increase is temporary – effective from June 23 through Sept. 29 – but it will boost PennyMac’s funding capacity by $486 million. On June 23, 2017, PennyMac agreed to revised terms of its Third Amended and Restated Master Purchase Agreement (CS Repurchase Amendment), which would increase temporarily its maximum committed purchase price to $943 million from $700 million. Entered into on April 28, 2017, the amended repurchase agreement would allow PennyMac to sell to Credit Suisse and later repurchase certain newly originated residential and small-balance multifamily mortgages. The agreement also includes ...


July 7, 2017 - Inside FHA/VA Lending

DOJ, HUD Expand FCA Scrutiny to FHA Servicing, Reverse Mortgages

Mortgage compliance experts are cautioning FHA servicers to tread carefully around loss mitigation, annual certifications and reverse mortgages, which could be a potential minefield for False Claims Act lawsuits. While FHA lenders’ exposure to FCA risk remains, the Department of Justice and the Department of Housing and Urban Development have increased their scrutiny of FHA servicing practices for potential violations, according to Phil Schulman and Kristie Kully, both partners in Mayer Brown’s Washington office. In a recent podcast, Schulman warned of increasing DOJ and HUD scrutiny of FHA servicing practices in the last 18 months, a worrisome shift from the origination side, which has seen an estimated $5 billion in settlements and penalties since 2011 for violations of the FCA and the Financial Institutions Reform, Recovery and Enforcement Act. Since 2008, mortgagees participating in ...


July 7, 2017 - Inside FHA/VA Lending

Ginnie MBS Issuance Rides Rising Home Sales in 2Q17

Ginnie Mae issuers were moderately busier in the second quarter of 2017 than during the first three months of the year, according to a new analysis and ranking by Inside FHA/VA Lending. Issuers produced $112.71 billion of single-family mortgage-backed securities during the second quarter, including MBS backed by FHA home-equity conversion mortgages. It was a 5.5 percent increase from the previous period and brought year-to-date issuance to $219.51 billion, down 0.7 percent from the first half of 2016. The quarterly uptick in total issuance may not sound like much, but contrasts sharply with production at Fannie Mae and Freddie Mac, which dropped 13.1 percent from the first to the second quarter. Ginnie volume was up because it had a deeper vein of purchase-money mortgages than there was in the government-sponsored enterprise market. Purchase loans accounted for 63.4 percent of ... [Charts]


June 23, 2017 - Inside FHA/VA Lending

VA Jumbo Securitization Declines, FHA Jumbo Production also Down

Wells Fargo fell a notch as PennyMac raced to the top to become the leading VA jumbo securitizer for the first quarter of 2017 – a period in which VA jumbo loan securitization took a sharp nose dive. The volume of VA jumbo loans securitized during the first three months plunged 36.8 percent, compared to the meager 2.0 percent decline seen in the fourth quarter. The drop reflected a 32.9 percent drop in jumbo mortgage production during the first quarter, along with similar large drops in virtually every product segment in the mortgage market, according to an analysis by Inside FHA/VA Lending affiliate Inside Mortgage Finance. The agency jumbo market was down 39.1 percent from the fourth quarter despite the bump up in high-cost loan limits to $636,150, an increase of $10,650 that became effective in January. All components of the agency jumbo market took big hits in the first quarter, including ... [ Charts ]


June 9, 2017 - Inside FHA/VA Lending

Hunt for GNMA Chief Continues, Business as Usual at the Agency

Ginnie Mae is sailing without a captain, a fact that is causing some concern among mortgage bankers and mortgage-backed securities investors. The agency tasked with securitizing government-backed mortgages has been without a president since Democrat Ted Tozer left on Jan. 20, 2017, the same day that President-elect Donald Trump was sworn in as the 45th president of the United States. Since that time, Nancy Corsiglia, a career Ginnie official, has been acting president. She was elevated from her position as chief operating officer. Industry officials who claim to have knowledge of the selection process maintain that mortgage banke David Kittle, president of the Mortgage Collaborative, is the leading candidate to fill the post with Michael Bright, a director at the Milken Institute, a close second. One source close to the situation claimed that background checks by the Trump White House are likely ...


June 9, 2017 - Inside FHA/VA Lending

HECM Originations Rise in 1Q17 Even As Endorsements Lose Steam

Reverse-mortgage originations with FHA insurance rose in the first quarter of 2017 from the prior quarter and from the same period last year despite a long-term slowdown in Home Equity Conversion Mortgage activity, an analysis of agency data found. HECM lenders, including an increasing number of nonbanks, produced $4.5 billion in new HECM loans during the first three months of 2017, up 16.9 percent from the prior quarter. Production also was up 16.6 percent year-over year. Purchase reverse mortgages comprised 83.6 percent of HECMs produced during the period. Borrowers appeared to favor reverse mortgages with adjustable rates over fixed-rate HECMs, which accounted for only 10.7 percent of HECMs in the first quarter. Despite increased originations in the first quarter, FHA data show a gradual decline in HECM endorsements since peaking in FY 2009 with ... [Charts]


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