The performance of government-insured mortgages declined slightly in the second quarter of 2024, according to a new Inside FHA/VA Lending analysis of Ginnie Mae servicing disclosures. (Includes four data tables.)

Servicers have until Oct. 1 to implement the new VA Servicing Purchase loss-mitigation program. Meanwhile, the House Committee on Veterans’ Affairs introduced legislation to authorize a VA partial-claim loss-mitigation option.

Borrowers’ perceptions of their home valuations are influenced by localized stressors, according to economists in HUD’s Office of Policy Development and Research.

Large bank correspondent aggregators of FHA mortgages looked to firm guidelines on credit scores and LTV ratios while Fed researchers found that smaller nonbank lenders were willing to go down in credit and loan performance didn’t suffer.

Loan removals from Ginnie MBS increased in the second quarter of 2023. Removals are largely tied to loan payoffs, though there are some variations among servicers. (Includes data chart.)

Loan removals from Ginnie Mae MBS fell to their lowest point in at least four years as payoffs, defaults and loss mitigation all ebbed in the first quarter of 2023. (Includes data chart.)

Although the share of Ginnie Mae loans in forbearance decreased to 1.28% in February from 1.37% the prior month, there are still concerns about FHA/VA loan performance.

The delinquency rate for FHA single-family loans pooled in Ginnie Mae mortgage-backed securities increased to 7.29% at the end of September, driven by loans in the 30 to 60 days bucket. (Includes four data charts.)

COVID-19-related circumstances were a factor for about 96% of the loans in forbearance in Ginnie MBS at the end of December.

Key metrics reviewed in HUD’s single-family default monitoring system showed that residential servicers generally complied with HUD’s forbearance reporting requirements for FHA loans.