Tag Archives: Servicing

Foreclosure starts rose in August

 After increasing for two consecutive months, the national delinquency rate fell by 3.6% in August, to just 4 basis points above the record low set in May, Black Knight said. However, foreclosure starts rose 14.7% compared with July and by nearly 174% over August 2021. The improvement in performance might be short-term given the consensus […]

Ginnie Mae says most issuers are compliant with risk-based capital rule

Ginnie Mae on Tuesday issued a statement indicating most nonbank mortgage companies it works with are ready for its upcoming risk-based capital rule implementation, while also recognizing that not everyone is. “While the overwhelming majority of Ginnie Mae issuers are compliant with these requirements today, we will continue engaging with our issuers throughout the implementation […]

Student loan forgiveness’ boost to mortgage performance may be small

Mr. Cooper ran the numbers on student loan forgiveness and found some potential for it to improve home loan performance, but not enough to move the needle, executives told investors at the Barclays Financial Services Conference this week. Troubles with education debt have been contributing to the mortgage delinquency rate, but not to any great […]

Ginnie Mae’s new capital rules draw split opinions

While Ocwen and smaller players have shown concern about the impact of new risk-based capital requirements Ginnie Mae plans to add by the end of next year, others publicly traded companies may not, according to a new Keefe, Bruyette & Woods report. “We believe all other mortgage originators/servicers in our coverage universe have excess capital […]

Ocwen warns of difficulty meeting new Ginnie Mae capital requirement

Ocwen Financial has issued a statement indicating that it foresees trouble meeting Ginnie Mae’s new risk-based capital requirement by the end of next year. While they don’t anticipate problems with other aspects of the new minimum eligibility requirements recently announced by the government bond insurer in coordination with the Federal Housing Finance Agency, the RBC […]

Default risk for recent originations comes in higher due to refi mix

A higher proportion of cash-out refinances is bringing with it increased default risk for conventional mortgages originated in the second quarter compared to earlier this year, a new report found. The expected rate of loan delinquencies of 180 days or more for new second-quarter mortgages at some point in their life cycle increased to 2.78% […]

Some student loan forgiveness could benefit mortgages

Student loan forgiveness for more than 40 million people announced this week could help improve mortgage eligibility and performance for a subset of them. However, housing finance experts warn the relationship between education-related debt and home loans is often not a straightforward one, and maintain advice they’ve issued in the past when it comes to […]

CHLA asks for changes to repooling procedures for modified FHA loans

The Community Home Lenders Association this week called for changes to be made surrounding loss mitigation procedures for defaulted borrowers and the repooling of their loans in the government-insured market, citing the impact of rising interest rates.  In a letter addressed to Federal Housing Administration Commissioner Julia Gordon and Alanna McCargo, president of Ginnie Mae, […]

FHFA, Ginnie Mae jointly revise requirements for mortgage companies

The Federal Housing Finance Agency and Ginnie Mae jointly released updated minimum financial-eligibility standards for counterparties that turned out to be less restrictive than mortgage trade groups had feared. The new standards slated to go into effect late next year appear to mark a partial retreat from an earlier Ginnie proposal that would have imposed […]

Rising disaster coverage costs could be coming to a head for housing

One of the most tangible indicators of climate change’s impact on mortgaged homes are the public and private price tags for insured risks associated with natural disasters. Homeowner claims-related losses have outweighed premiums for private insurers in four out of the past five years, according to Fitch Ratings. And the National Flood Insurance Program, which […]