Federal prosecutors have charged the top executive of defunct reverse-mortgage lender Live Well Financial for allegedly masterminding a $140 mil-lion bond fraud involving Home Equity Conversion Mortgage loans.

The Department of Veterans Affairs has issued guidance to mortgage servicers regarding the process of sending loss mitigation letters to borrowers who have fallen behind on their monthly payments. The guidance encourages servicers to work with distressed borrowers to avoid foreclosure.

Recent enhancements to Ginnie Mae’s counterparty risk policy are positive because they ensure servicers do their job with greater accuracy and precision, an agency-approved servicer said. Ginnie mandates additional ratings for issuers whose portfolios exceed a certain threshold.

The volume of broker-originated FHA and VA refinance loans pooled in new Ginnie MBS jumped 94.1% from the first to the second quarter. Correspondent production saw the smallest gains among the three channels.

HUD is asking stakeholders to comment on proposed changes to FHA’s annual lender certification.

A U.S. bankruptcy court in Delaware has appointed a trustee to take charge of the involuntary liquidation of Live Well Financial.

The firm is set to issue a $187.1 million MBS backed by inactive HECMs and real estate-owned properties.

The financial conditions of Ginnie Mae’s largest nonbank issuers appear to be healthy and the firms ready for any potential economic downturn, the secondary mortgage market agency said.