FHA and the government-sponsored enterprises (GSEs) have insured or guaranteed nearly 95 percent of new mortgage loans being originated. By the end of 2008, almost half of new home purchase loans and one quarter of new refinance loans were FHA or Veterans Administration (VA) insured. According to NCRC, an association of more than 600 community-based organizations that promote access to basic banking services, their fair lending “testers” evaluated the practices of national lenders, financial services corporations, and other regional and local FHA-approved lenders. In the complaints filed, the NCRC states that lenders were chosen according to their market share and volume of FHA loans, as well as through discussions with community leaders. Under the Fair Housing Act, HUD impartially investigates allegations of housing discrimination and, during every phase of investigations, attempts to settle complaints through conciliation efforts. For more information, visit www.hud.gov.
HOPE NOW: More Than 1.5 Million Loan Mods Completed in 2010
Proprietary loan modifications decreased—117,000 in September compared to 101,000 in October. 60-plus days delinquencies increased— 3.2 million in September compared to 3.4 million in October. Foreclosure starts decreased from 245,000 in September to 205,000 in October. Completed foreclosure sales decreased from 118,000 in September to 69,000 in October. Loan modifications outpaced foreclosure sales in October 125,000 to 69,000. For more information, visit www.hopenow.com.
Ginnie Mae to Enhance Disclosure Transparency on HECM Securities Ginnie Mae has announced that it will soon release enhanced disclosure information on its Home Equity Conversion Mortgage
(HECM) securities program. Ginnie Mae’s HECM securities program supports a growing number of government-insured reverse mortgages, an important financial solution for many seniors. For Ginnie Mae HECM pools, the additional disclosure information will include the number of HECM Saver loans and their remaining principal balance (RPB). Ginnie Mae will also disclose the HECM Saver RPB as a percentage of the total HECM RPB. The new disclosure information is aimed at helping investors better predict the performance of the underlying mortgage collateral and evaluate the performance of HECM Saver loans relative to that of standard HECM loans. “Investors will certainly appreciate the additional information, but ultimately consumers should benefit the most from the more robust disclosures especially in terms of lower financing costs,” said Ginnie Mae President Ted Tozer. “We believe more detailed and timely disclosure information on this segment of the market should enhance investors’ ability to assess the performance of these securities and allow Issuers to sell their loans into the secondary market for better prices.”
For more than 40 years, the industry has turned to the stability of the Ginnie Mae mortgage-backed security (MBS), allowing Ginnie Mae to provide homeownership opportunities for millions of Americans. Ginnie Mae securitizes loans insured or guaranteed by the Federal Housing Administration (FHA), the Department of Veterans Affairs, the Department of Agriculture’s Rural Development, and the Department of Housing and Urban Development’s Office of Public and Indian Housing. For more information, visit www.ginniemae.gov.
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JANUARY 2011
HOPE NOW, the private sector alliance of mortgage servicers, investors, mortgage insurers and non-profit counselors, has released its October 2010 survey data which estimates that the industry has completed more than 1.54 million permanent loan modifications for at-risk homeowners from January through October 2010. That translates to an average of 154,000 homeowners per month who have been able to remain in their homes with an affordable loan modification solution. The reported data for October shows mortgage servicers completed approximately 101,000 proprietary loan modifications for homeowners and 24,000 Home Affordable Modification Program (HAMP) modifications (as reported by U.S. Treasury Department), for an estimated total of 125,000. “There were anomalies in the October data that affected 60 day plus delinquency, as well as foreclosure, metrics which we believe may be largely attributed to widespread foreclosure delays across the country,” said Faith Schwartz, executive director of HOPE NOW. “Despite these irregularities the mortgage industry’s efforts to keep homeowners in their homes and offer viable mortgage solutions continues to show strong results each month. Far more homeowners are receiving workout solutions—including loan modifications—than are going to foreclosure sale each month.” Of particular note in October’s data is the effect foreclosure delays and pauses (initiated by some mortgage servicers nationwide) had on the delinquency and foreclosure numbers for the month. Specifically foreclosure starts and sales
dropped to 205,000 and 69,000, respectively while the number of homeowners more than 60 days delinquent increased slightly to 3.4 million. Here are the highlights of the October 2010 monthly data (based on industry estimates):