Congress has passed a veterans' benefits bill that includes a fix for VA hybrid adjustable-rate mortgages and opens the door for their inclusion in Ginnie Mae mortgage-backed securities.The veterans bill (S. 1235) gives the secretary of the Department of Veterans Affairs discretion in setting the interest rate adjustment on VA-guaranteed 5/1 hybrids and eliminates the current 100-basis-point cap. In all likelihood, the secretary will set the interest rate increase at a maximum of 200 bps each year, which is the industry standard, according to Keith Pedigo, director of the VA loan guarantee program. The Federal Housing Administration hybrid program also allows a 200-bp adjustment for 5/1, 7/1, and 10/1 hybrids with a 600-bp lifetime cap. Once the president signs S. 1235, Ginnie Mae will be able to pool VA and FHA hybrids together for better execution. This change should stimulate more originators to make VA hybrids, Mr. Pedigo said.
-
The lender recorded a $59 million net loss in the fourth quarter, an 83% improvement from its third quarter performance.
March 28 -
Initial analyses of Home Mortgage Disclosure Act data show UWM ahead in 2023 loan numbers and dollar volume, but Rocket's market share still looks competitive.
March 28 -
Last year, the Raleigh, N.C.-based Integrated called off a deal to sell itself to MVB Financial after bank stocks took a hit in the aftermath of the regional bank failures. Capital hopes to expand its government-guaranteed lending with the transaction.
March 28 -
The pending end of the program comes as over half of U.S. states have already ceased accepting new applicants for federal aid aimed to help struggling households with mortgage payments.
March 28 -
But the 30-year fixed rate mortgage is still near 7%, and that remains the overhang on the housing market, Freddie Mac said.
March 28 -
Mortgage payments rose 10% year-over-year to an all-time high for March, Redfin said.
March 28