Over a fifth of the loans securitized last year by Fannie Mae, Freddie Mac and Ginnie Mae do not meet one of the key criteria of the qualified-mortgage standard that came into effect in January 2014, and instead rely on an exemption for agency loans. During 2014, the three agencies securitized $198.3 billion of home loans with debt-to-income ratios exceeding 43.0 percent, according to a new Inside MBS & ABS analysis of loan-level disclosure data. That represented 21.5 percent of total MBS issuance by Ginnie and the two government-sponsored enterprises. The Consumer Financial Protection Bureau requires...

If a borrower went shopping for a mortgage loan in 2014, he or she would have found FHA insurance costlier than private mortgage insurance even with a 20 percent downpayment, according to a new report from WalletHub, a web-based organization that monitors a variety of financial services. FHA mortgage insurance premiums have nearly doubled since 2008, when conventional loans with private MI grew scarce and FHA became the only game in town for ...

Jumbo mortgage production last year grew its share of total originations to its highest level since well before the financial collapse that launched the era of the “agency jumbo” loan. Mortgage lenders cranked out a total of $291.1 billion of home mortgages with loan balances exceeding the old conforming loan limit of $417,000. Like everything else in mortgages, jumbo production was down from 2013, by 22.4 percent. But total mortgage originations fell...[Includes three data charts]

FHA launched into the new year with a slight dip in forward mortgage loan originations in January from December with nonbanks leading the charge, according to Inside FHA Lending’s analysis of agency data. Lenders originated $11.8 billion in FHA-insured loans in January, a 0.7 percent decrease from December and down 3.5 percent from the prior year. FHA was charging a higher annual mortgage insurance premium of 1.35 percent for most of the month until a 50 basis point reduction, effective Jan. 26, lowered the MIP to 0.85 percent for a 30-year, fixed-rate mortgage with a five percent downpayment, and down to 0.80 percent for a similar FHA loan with more than five percent downpayment. The impact of the reduced MIP on February originations is still unclear, but most FHA lenders are expecting a boost in volume because many consumers ... [1 chart]

Agency single-family MBS issuance rose 2.8 percent in February on the back of a huge increase in securitization of seasoned home loans at Freddie Mac, according to a new Inside MBS & ABS ranking and analysis of loan-level MBS data. Fannie Mae MBS issuance fell 3.2 percent from January to February, and Ginnie Mae production was down 12.8 percent. But Freddie Mac issuance jumped by $7.05 billion from January’s level, a gain of 30.8 percent in a month. Freddie securitized...[Includes two data charts]

Ginnie Mae plans to dispose of an estimated $5.3 billion in re-performing and nonperforming loans from a defaulted issuer’s portfolio following refusal by government auditors to sign off on the agency’s FY 2014 financial statement due to questionable accounting of the assets. Ginnie Mae President Ted Tozer said he hopes to dispose of the loans, which are part of $6.6 billion in non-pooled loan assets from the now-defunct Taylor, Bean & Whitaker Mortgage Corp.’s portfolio, within the year. Ginnie is currently managing the portfolio. According to a new Inspector General report, the $6.6 billion represented...

Ginnie Mae will restate its FY 2014 and FY 2013 financial statements after federal auditors withheld their opinion for lack of sufficient information because of accounting anomalies and poor servicing oversight. An audit report issued by the Department of Housing and Urban Development Inspector General said the issues in the FY 2014 financial statement arose from servicing problems associated with a defaulted issuer’s portfolio, which Ginnie Mae is currently managing. The portfolio once belonged to the now-defunct Taylor, Bean & Whitaker, a Florida-based loan originator and a top Ginnie Mae issuer.The FHA suspended TBW in August 2009 due to its failure to submit a mandatory annual report and to disclose certain transactions that suggested fraud. Soon after, Ginnie Mae terminated TBW as an issuer/servicer and seized the company’s $25 billion Ginnie MBS portfolio. According to the IG report, ...

The Department of Justice shows no sign of letting up in its pursuit of FHA lenders that originate improperly underwritten mortgages that later result in significant taxpayer losses. MetLife Home Loans, which is no longer in operation, became the newest addition to the government’s growing list of financial institutions that opted to settle allegations brought under the False Claims Act and the Financial Institutions Reform, Recovery and Enforcement Act, in connection with the origination and servicing of FHA-insured mortgages. Under the agreement, MetLife will pay $123.5 million to resolve allegations that its predecessor it “[turned] a blind eye to mortgage loans that did not meet basic FHA underwriting standards,” and stuck the FHA and taxpayers with the bill when the loans defaulted. In June 2013, MetLife Bank merged into MetLife Home Loans, a mortgage finance company ...

The FHA’s recent decision to reduce its annual mortgage insurance premium by 50 basis points pushes back the agency’s timeline for attaining the 2 percent capital reserve requirement by 2016 and limits private mortgage insurance companies’ ability to serve borrowers with higher loan-to-value ratios, warned MI industry representatives. Testifying before the House Financial Services Subcommittee on Housing and Insurance, Clifford Rossi, chief economist of Radian Group, said the FHA sought to justify the premium cut by saying it far exceeded the amounts necessary to cover new FHA-insured mortgages. “But this ignores the higher expected losses on earlier insured loans,” he said. Comparing lifetime premiums on current borrowers to their projected average lifetime losses is not a meaningful comparison for an insurance portfolio comprised of borrower risk profiles over book years subject to different economic scenarios, Rossi argued. Moreover, comparing premiums to average losses overlooks ...

The FHA bucked a decreasing delinquency-rate trend for all other types of loan by posting an increase in past-due loans during the last three months of 2014, according to the Mortgage Bankers Association’s latest national delinquency survey. On a seasonally adjusted basis, the overall delinquency rate fell 17 bps for all loan types to 5.68 percent, MBA data showed. Data compiled by the Inside Mortgage Finance Large Servicer Delinquency Index also showed a sizeable decline of 32.7 basis points in the fourth quarter from the prior quarter. The 24 servicers covered by the index had a delinquency rate of 6.34 percent in the fourth quarter, down from 7.59 percent in the same period the prior year. The IMF data are not seasonally adjusted. In contrast, the FHA delinquency rate rose to 9.73 percent in the fourth quarter, up 4 bps from the previous quarter, according to the MBA. On the other hand, loans with a ...