Mortgage professionals involved with the servicing of Federal Housing Administration mortgage loans said the biggest challenge they face with those loans is fulfillment of FHA property preservation and conveyance requirements, according to the February 2015 Mortgage Industry Outlook Report released Monday by The Collingwood Group and The Five Star Institute. Thirty-nine percent of survey respondents who service FHA loans for their respective companies named fulfilling property preservation requirements as the toughest challenge.
There was a three-way tie in the survey for the second biggest challenge servicers face when handling FHA loans: Loss mitigation program options, compliance with First Legal Action time frames, and compliance with due diligence time frames garnered 17 percent each. Rounding out the list of challenges were pre-foreclosure sale program requirements and the execution of the FHA loss mitigation waterfall with 4 percent each.
Fannie Mae's gross mortgage portfolio continued its downward trend in December, declining at a compound annualized rate of 26.4 percent, according to Fannie Mae's December 2014 Monthly Summary. The value of Fannie Mae's mortgage portfolio fell from $424 billion in November down to $413 billion in December. Since the end of June 2010, when the value of the portfolio stood at $818 billion, the compound annualized rate has declined in 53 of the last 54 months. The only month during that time when the portfolio grew was in December 2012, when it increased by 1 percent.