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M R EP O RT | 45 O R I G I NAT I O N S E R V I C I N G DATA G O V E R N M E N T S E C O N DA R Y M A R K E T THE LATEST ORIGINATION The Prevalence of Non- Conventional Financing The share of homeowners using non-conventional financing is on the rise. A nalysis of data from the 2018 Census Bureau Survey of Construction (SOC) reveals that the share of non-conventional financ- ing nationally accounted for 28.6% of the market, opposed to 71.4% of conventional financing, according to the National Association of Home Builders. Non-conventional financing includes loans insured by the Federal Housing Administration, VA-back loans, cash purchases, and other financing types such as Rural Housing Service, Habitat for Humanity, and other state or local government-backed bonds. The West South Central region of the nation had the largest share of non-conventional financing at 38.7%. The second-highest share of non-conventional financing was in the South-Atlantic region at 31.4%. The East South Central region of the nation had the smallest share of non-conventional financing at 11.6%. Nationally, FHA-backed loans remained the common form of non-conventional financing of new home purchases at 11% of the market share. Cash purchases were the second-most used form of non-conventional financing at 10%. VA-backed loans accounted for 5.6% of non-conventional financ- ing. It was reported earlier this year that the volume of the amount of loans originated through the Department of Veterans Affairs came to 119,048 loans for $31.9 bil- lion during the first three months of 2019. The average VA loan was $268,213. The Department of Veterans Affairs reported the overall loan volume for Q2 2019 (fiscal-year Q 3) jumped to 155,685 loans for $44.1 billion. In an interview with MReport, Michael Oursler, Chief Credit Officer for NewDay USA, said leading the way for VA loan origination was fintechs, as the technology involved helps with quicker processing and more ef- ficiency. Also, a report by the Military Times reveals that Veteran Affairs officials have paid out more than $400 million in refunds of home loan funding fees following an inspector general's report. The inspector general's report found that tens of thousands of veterans were improperly charged extra fees when applying for the loans. According to the Military Times, VA officials have reviewed more 130,000 cases over the sum- mer seeking errors, which mostly involved clerical mistakes or dis- ability ratings changes after vets settled on their loans.