FHA Programs

Browse articles from all of our Newsletters related to FHA Programs.

January 18, 2019 - Inside FHA/VA Lending

Plan Afoot to Reintroduce VA ‘Orphan Loan’ Measure

Congress reportedly plans to reintroduce legislation that would restore Ginnie Mae eligibility for hundred-million dollars’ worth of so-called orphan VA streamline refinance loans. H.R. 6737, Protect Affordable Mortgages for Veterans Act of 2018, was passed by the House by voice vote on Sept. 26 last year and was sent to the Senate, where it was stalled on a technicality. The bill aimed to clarify new seasoning requirements in the Dodd-Frank Wall Street Reform and Consumer Protection Act (S. 2155) that specifically applied to VA’s Interest Rate Reduction Refinance Loans and which became effective upon enactment. The requirements were designed to curb churning of VA loans that were triggering unusually fast prepayments in Ginnie Mae mortgage-backed securities. Some lenders and brokers were soliciting homeowners to refinance their VA mortgages more than once to ...


January 18, 2019 - Inside FHA/VA Lending

Bright’s Hasty Exit Leaves a Vacuum at Ginnie Mae

Ginnie Mae has reached the halfway mark of President Trump’s first term without a permanent leader and appears likely to remain so until after the 2020 presidential election. Last week, Michael Bright, President Trump’s nominee to head Ginnie Mae, abruptly announced his resignation after waiting for months to be confirmed. Bright, who was executive vice president and chief operating officer, served as acting president of the agency after former President Ted Tozer resigned at the end of the Obama administration. Senate rules require resubmission if a nominee is not confirmed within the year he or she was nominated. This means going through the Senate vetting and confirmation processes all over again. It appears Bright no longer wanted to do that, opting instead to join the Structured Finance Industry Group, which represents all segments of the securitization industry, as president. In a Jan. 9 resignation letter to ...


January 18, 2019 - Inside FHA/VA Lending

VA Stakeholders Struggle With Interim Cash-Out Rule

More clarity is needed with regards to the Department of Veterans Affairs’ proposed changes to its rules on cash-out refinances, VA lenders said. Most lenders are confused by the regulatory language on the interim final rule published a month ago in the Federal Register. Some warn that the rule may hurt VA borrowers. The rule is out for comment until Feb. 15, the same day it becomes effective. The rule is intended to curb abusive lending practices of cash-out refinances even as consumer preference for such loans grows. It separates cash-out refis into two types. Type 1 is a loan being refinanced that is already guaranteed by VA and where the new loan amount is equal to or less than the payoff amount of the original loan. Type 2 cash-out loans are those in which the amount of the principal for the new loan is larger than the payoff of the refinanced loan. Under the interim final rule, both types of cash-outs would be ...


January 4, 2019 - Inside FHA/VA Lending

Around the Industry

Market Condition Addendum to VA Appraisals Dropped; Farm Bill Maintains Local Eligibility for USDA Rural Housing Programs.


January 4, 2019 - Inside FHA/VA Lending

Urban Institute Identifies FHA Trends to Watch in 2019

Following the November release of FHA’s fiscal 2018 report on the health of the Mutual Mortgage Insurance Fund and increases in FHA loan limits, analysts at The Urban Institute have identified four FHA trends to watch for in 2019.


January 4, 2019 - Inside FHA/VA Lending

Banking Panel Seeks FHA Loans for DACA Recipients

Democrats on the House Financial Services Committee urged the FHA to reverse its “unofficial” policy of denying Deferred Action for Childhood Arrivals status recipients access to FHA loans.


January 4, 2019 - Inside FHA/VA Lending

Stakeholders Cite Flaws in VA’s Cash-Out Interim Rule

There are certain weaknesses in the Department of Veterans Affairs’ interim final rule on VA cash-out refinance loans that need to be ad-dressed to ensure borrowers and investors are protected from loan churning and other predatory lending practices.


January 4, 2019 - Inside FHA/VA Lending

Government Shutdown Has Little Impact on FHA, VA

The partial government shutdown, now in its second week, has had limited impact on the FHA and VA lending programs but could be disastrous to federal rural housing programs if prolonged.


January 4, 2019 - Inside FHA/VA Lending

Ginnie MBS Issuance Down In 4Q Despite Refi Uptick

Ginnie Mae issuance of single-family mortgage-backed securities fell predictably in the fourth quarter, despite an unexpectedly strong market for refinance loans. [Includes four data charts.]


December 20, 2018 - Inside MBS & ABS

Analysts Positive on VA’s Interim Rule on Cash-Out Refinancing but Fear Loopholes Could Inflict Harm

The Department of Veteran Affairs’ interim final rule on cash-out refinancing appears to be a positive move for borrowers and investors, especially for higher coupon MBS but potential loopholes could seriously weaken it, analysts warned.


December 14, 2018 - Inside FHA/VA Lending

FHA Drops Warranty Requirements for New Single-Family Construction

The Department of Housing and Urban Development has issued a final rule streamlining single-family home-warranty requirements for FHA insurance.


December 14, 2018 - Inside FHA/VA Lending

FHA’s Mandatory Second Appraisal for Certain HECMs Now Automated

The FHA has announced that protocols in place for second appraisal requirements for certain Home Equity Conversion Mortgage loans are now fully automated.


December 14, 2018 - Inside FHA/VA Lending

CFPB Hammers VA Lender for Deceiving Borrowers on IRRRLs

The Consumer Financial Protection Bureau has filed a complaint and a proposed settlement against a Nevada lender for misleading borrowers on the benefits of VA streamline refinancing.


December 14, 2018 - Inside FHA/VA Lending

FoA Agrees to FCA Settlement; DOJ, IGs Resolve Billing Fraud Case

Finance of America – a Blackstone Group portfolio company – has agreed to pay $14.5 million to the government to resolve allegations that its operating subsidiary, Gateway Funding Diversified Mortgage Services, knowingly endorsed ineligible loans, resulting in losses to the FHA insurance fund.


December 14, 2018 - Inside FHA/VA Lending

VA Announces 2019 Loan Limits, Baseline Limit Rises 6.9 Percent

The Department of Veterans Affairs has announced new VA loan limits for 2019, a 6.9 percent increase from last year.


December 14, 2018 - Inside FHA/VA Lending

Analysts Suggest Interim Action for Ginnie Mae on Cash-Out Refi Loans

Mortgage-backed securities analysts are recommending that Ginnie Mae temporarily place VA cash-out refinance loans with high loan-to-value ratios in custom pools until the VA implements new rules to curb churning in cash-out refis.


December 14, 2018 - Inside FHA/VA Lending

Borrowers on FICO’s Lower End Save More on FHA Cash-Out Refis

The ability to extract more equity at a lower price appears to be driving the growth in FHA cash-out volume, according to an Urban Institute analysis of FHA’s FY 2018 report on the financial condition of the Mutual Mortgage Insurance Fund.


December 10, 2018 - Inside the CFPB

VA Lender Sued for Deceiving Veterans Regarding IRRRLs

The CFPB last week sued Village Capital & Investment for deceiving veterans regarding the Interest Rate Reduction Refinance Loans program.


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