Ginnie Mae says it is expecting to see a boost in securitizations of hybrid adjustable-rate mortgages in July now that Federal Housing Administration lenders are originating 5/1 hybrids with interest rate caps that are acceptable to lenders and investors.In April, Ginnie securitized $655 million 3/1 hybrid ARMs, but only $16 million in 5/1 hybrids. The 5/1 product had a 1-percentage-point cap on the annual interest rate adjustment, and very few lenders are originating that product. Late last year, Congress raised the cap to 2 percentage points with a 6-percentage point lifetime cap. "The 2/6 caps on the five-year will make it a much more interesting product for investors and for consumers," said Ginnie Mae vice president Ted Foster. "I think you will see a take-off in overall production in the five-year." Meanwhile, the Department of Veterans Affairs is seeking a legislative fix for its 5/1 hybrid ARM loans. While the VA hybrid loan allows for an initial 2-percentage-point increase, it is capped at 1 percentage point in subsequent years. The VA wants that changed to 2 percentage points. Mr. Foster said he expects the FHA to establish the market for government-guaranteed 5/1 hybrids by the time the VA introduces a competitive product.
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Elevated delinquency levels have not affected expected losses, however, due to home price appreciation, Fitch Ratings said.
7h ago -
Retail lenders, including Beeline, Tomo Mortgage and Rocket Mortgage, settled with the department over infractions like submitting a false certification to not having the proper liquidity to be in the program.
8h ago -
A pair of bills, one with bipartisan support, look to address the issues around heirs' property so these families can have clear title on their homes.
8h ago -
The agreement, in which the real estate giant admits no wrongdoing, will cover around 70,000 agents.
10h ago -
Doxo plans to fight the FTC complaint, which focuses broadly on consumer finance, but there are signs of confusion about the company's role in mortgages too.
April 25 -
Members of the LGBTQ community were most likely to have experienced housing bias, according to a Zillow survey, which also found many people don't recognize how fair lending laws could help.
April 25