FHA Breaking News :

Knowledge Is King: Embracing First-Time Homebuyers With Education

2010-04-30T11:01:00.001-04:00

As April 1 nears and buyers race to beat the deadline for the first-time homebuyer tax credit, lenders and Realtors have taken out the racing flags to carry them in. Real estate industry statistics suggest that approximately 1.8 million people are expected to receive the federal first-time homebuyer tax credit. They also indicate that the rebate has currently spurred approximately 350,000 home sales. With literally millions of potential first-time homebuyers who qualify for the tax credit, mortgage professionals continue to work hard to sell.

To read the entire article, please visit : http://nationalmortgageprofessional.com/news17302/knowledge-king-embracing-first-time-homebuyers-education

FHA's Delinquency Rate Falls Below 9%

2010-04-30T10:59:00.001-04:00

The Federal Housing Administration (FHA) has taken a lot of heat lately for the growing number of delinquencies in its portfolio. But new data released this week shows that the agency is making significant strides in this area. According to FHA’s March operations report, loans that are 90 days of more past due dropped to 8.8 percent at the end of last month – down from 9.2 percent in February. The March rate equates to 536,858 mortgages in arrears. In February, the agency counted 553,929 mortgages that were in seriously delinquent status.

To read the entire article, please visit : http://www.dsnews.com/articles/fhas-delinquency-rate-falls-below-9-2010-04-28

The ABC’s of FHA Condo Requirements

2010-04-30T10:49:00.001-04:00

Condominium associations now have to prove they are worthy investments, according to new regulations from the Federal Housing Administration. As of Feb. 1, associations with two or more units must be FHA-certified before the agency will back a mortgage. The previous policy of allowing one-time, or "spot approval," for individual units was rescinded. FHA loans have grown extremely popular in recent years. The country's economic meltdown prompted conventional lenders to require higher downpayments and credit scores, but qualified FHA buyers can own a home for as little as 3.5 percent down.

To read the entire article, please visit : http://articles.chicagotribune.com/2010-04-29/news/ct-home-0430-condo-living-fha-regulations20100429_1_fha-associations-declaration-and-bylaws

New-Home Sales Rise Fastest In 47 years

2010-04-23T17:11:00.001-04:00

New home sales improved in March at the fastest single-month rate in 47 years, according to a government report released Friday, as buyers snatched up properties ahead of the tax credit that's set to expire.New-home sales rose 26.9% to a seasonally adjusted annual rate of 411,000 last month, compared to an upwardly revised annual rate of 324,000 in February, the Census Bureau said. The gain snapped a four-month streak of declines.

To read the entire article, please visit: http://money.cnn.com/2010/04/23/news/economy/new_home_sales/index.htm

FHA Continues To Drop The Hammer Is Your Company next?

2010-04-23T10:08:00.002-04:00

Mortgagee Letter 2010-03 contains information about the procedures that the Federal Housing Administration (FHA) will follow for terminating the underwriting authority of lenders with a high default and claim rate (DCR). Many loan officers are unaware of what a DCR is, let alone and where to find out what their company’s DCR is. The DCR is the sum of the loans in default and claim divided by the total loans originated within a 24-month period (or what FHA calls a “Performance Period”).

To read the entire article, please visit : http://nationalmortgageprofessional.com/news17120/fha-insider-fha-continues-drop-hammer-your-company-next

NAACP drops lawsuit against Wells Fargo

2010-04-23T10:07:00.000-04:00

The NAACP has dropped its racial discrimination lawsuit against Wells Fargo, the organization and the company said on Thursday. "Wells Fargo and the NAACP have agreed to work constructively on ways to improve fair credit access, sustainable home ownership and financial literacy for communities of color and other historically disadvantaged communities," Wells Fargo and the NAACP said in a joint press release. The NAACP said that Wells Fargo (WFC, Fortune 500) is just one of 14 financial institutions that it has sued since 2007 over allegations that these companies violated the Fair Housing and Equal Credit Opportunity acts. The other firms include JPMorgan Chase (JPM, Fortune 500), Citibank (C, Fortune 500) and HSBC.

To read the entire article, please visit : http://money.cnn.com/2010/04/08/news/companies/wells_fargo_naacp/index.htm

Straining The FHA's Umbrella

2010-04-23T10:05:00.001-04:00

A District nonprofit organization that says it helps cash-strapped homeowners avoid foreclosure is under federal investigation for instead helping lenders make high-risk loans that leave the government on the hook if they go bad, according to sources familiar with the probe. Federal officials say they are concerned that the Rainy Day Foundation could be thwarting government efforts to weed out mortgage lenders that make too many precarious loans.

To read the entire article, please visit : http://www.washingtonpost.com/wp-dyn/content/article/2010/04/17/AR2010041702548.html

House Committee Holds Hearing on Barriers to Principal Write-Downs

2010-04-16T17:49:00.001-04:00

Political pressure is growing for lenders to cut mortgage principal for borrowers who find themselves underwater now that property values have plummeted. Executives from the nation’s four largest banks – Bank of America, Citigroup, Wells Fargo, and JPMorgan Chase – pushed back against that pressure Tuesday at a House Financial Services Committee hearing. They argued to lawmakers that reducing mortgage principal only makes sense for a handful of borrowers with high-risk loans, and that a large-scale principal forgiveness program could have dire ramifications for the future of housing finance and consumers’ access to credit

To read the entire article, please visit: http://www.dsnews.com/articles/house-committee-holds-hearing-on-barriers-to-principal-reduction-2010-04-13

Ginnie Mae To Allow Securitized Single Loans, Boosting Small-Lender Competition

2010-04-16T10:29:00.002-04:00

Ginnie Mae plans to allow lenders to securitize single loans starting in July, a policy change that would help small lenders be more competitive when doing business with the agency and with the Federal Housing Administration. The FHA does not make loans but insures certain lenders against losses should borrowers default. The agency has played a key role in propping up the housing sector since the mortgage market meltdown. Mortgage lenders working with the FHA often bundle the loans they make into securities and sell them to investors.

To read the entire article, please visit: http://www.washingtonpost.com/wp-dyn/content/article/2010/04/13/AR2010041304324.html

FHA Begins Accepting e-signatures On Third-Party Docs

2010-04-16T10:26:00.001-04:00

The Federal Housing Administration (FHA) in Mortgagee Letter 2010-14 has announced the acceptance of electronic signatures on third party documents included in the case binder for mortgage insurance endorsement as long as they are in accordance with Electronic Signatures in Global and National Commerce Act (ESIGN) and the Uniform Electronic Transactions Act (UETA), as applicable. This policy will apply to forward mortgages and Home Equity Conversion Mortgages (HECMs).

To read the entire article, please visit: http://nationalmortgageprofessional.com/news17085/fha-begins-accepting-e-signatures-third-party-docs

Lawmakers Deliberate HAMP Revisions

2010-04-16T10:23:00.002-04:00

The House Financial Services’ housing subcommittee held a formal hearing this week on the administration’s new initiatives to provide help to underwater and unemployed homeowners through the Home Affordable Modification Program (HAMP). Most of the industry participants testifying on Capitol Hill applauded the Treasury’s efforts to tackle these foreclosure triggers, but there are some who are questioning the logistics and the true effectiveness of the new program enhancements.

To read the entire article, please visit: http://www.dsnews.com/articles/lawmakers-deliberate-hamp-revisions-2010-04-15

Fair Housing suits against Wells Fargo

2010-04-09T16:45:00.000-04:00

Baltimore and Memphis have filed new federal lawsuits accusing Wells Fargo of steering black borrowers into expensive mortgages, only to later conduct many foreclosures that cost the cities property tax revenue and forced both to spend more on public safety. The cities filed complaints Wednesday, the same day Wells Fargo agreed to settle an NAACP lawsuit accusing it of steering blacks into subprime mortgages while giving comparable white borrowers better loan terms. As part of the accord, Wells Fargo will let the civil rights group review its lending practices.

To read entire article, please visit: http://www.washingtonpost.com/wp-dyn/content/article/2010/04/08/AR2010040805698.html

FHA Mortgage Insurance Premiums Set to Increase

2010-04-09T11:41:00.001-04:00

Friday is the last day to get a mortgage backed by the Federal Housing Administration before insurance premiums rise. Mortgage insurance premiums on FHA-backed loans will increase to 2.25% of the total loan amount on Monday, from 1.75%. That amounts to an additional $500 for every $100,000 in borrowing. On a $300,000 loan, a borrower will pay $6,750 upfront in insurance costs, compared to $5,250 at current levels. Those insurance premiums can be rolled into the new loan.

To read the entire article, please visit: http://blogs.wsj.com/developments/2010/04/02/fha-mortgage-insurance-premiums-set-to-increase/

Purchase, rehab with one FHA 203k loan

2010-04-09T11:37:00.000-04:00

First-timer homebuyers often scramble to find the funds required for the down payment. Cash for needed repairs is simply not available and it will have to be saved over time. Given the drop in home values in many regions, the need for extra cash to close a home sale or refinance and then fix up the house spans all age groups and price ranges. For people without a job or on a fixed income, proper maintenance and repairs simply are not getting done. The home equity pot of funds is not what it used to be.

To read the entire article, please visit: http://www.akron.com/akron-ohio-real-estate.asp?aID=8649

FHA to Accept DocuSign For Real Estate Contracts Nationwide

2010-04-09T11:34:00.001-04:00

DocuSign, an on-demand electronic signature solutions, has announced that e-signed third-party documents, including real estate contracts, are now being accepted by the Federal Housing Administration (FHA). DocuSign spearheaded an industrywide effort to move the FHA to formally recognize e-signed third-party documents. The April 8, 2010 dated FHA Mortgagee Letter is the first in what is expected to be a series of responses to this initiative.

To read the entire article, please visit: http://nationalmortgageprofessional.com/news17019/fha-accept-docusign-real-estate-contracts-nationwide

HUD Celebrates April As Fair Housing Month

2010-04-02T10:22:00.001-04:00

Massachusetts family is billed by the landlord when children play in an outdoor common area and are fined when they file a fair housing complaint. An Alabama landlord is charged with turning off the water and evicting a white family because one tenant has an African-American boyfriend. An Illinois university student who is vision impaired and epileptic is refused dormitory housing because she has a trained service dog. HUD and private groups bring these and other discrimination cases under the Fair Housing Act, 42 years after it became law in April 1968.

To read the entire article, please visit: http://portal.hud.gov/portal/page/portal/HUD/press/press_releases_media_advisories/2010/HUDNo.10-067

The FHA's Benign New Role in Treasury's HAMP

2010-04-02T10:21:00.000-04:00

One aspect of Friday's announcement about changes with the Treasury's mortgage modification program (HAMP) involves the Federal Housing Authority (FHA). Some critics, including me, worried that getting the FHA involved could prove dangerous. Would taxpayers now be on the hook to guarantee any mortgage modified to prevent foreclosure? Luckily, it appears not. At least, not yet.

To read the entire article, please visit: http://www.theatlantic.com/business/archive/2010/03/the-fhas-benign-new-role-in-treasurys-hamp/38223/

Obama Administration Revises Anti-Foreclosure Strategy

2010-04-02T10:17:00.001-04:00

The Obama administration Friday tried to manage expectations about its newest foreclosure-prevention efforts, while consumer advocates and others who track the housing market praised the initiative but questioned whether it would succeed in curtailing the foreclosure epidemic. The initiative, announced Friday, expands on the government's marquee foreclosure prevention program, Making Home Affordable.

To read the entire article, please visit: http://www.washingtonpost.com/wp-dyn/content/article/2010/03/26/AR2010032604603.html

HUD Reverse Mortgage Foreclosures: Will They or Won’t They?

2010-03-26T11:00:00.001-04:00

Reports have circulated that HUD has given lenders approval to foreclose on seniors whose properties have gone into “technical” or other default, with specific instructions coming sometime this spring. “We are aware of HUD’s decision” to allow the foreclosures, one prominent originator told RMD, after much speculative discussion among reverse mortgage professionals at a recent industry conclave.There is broad agreement that such foreclosures – typically for failure to pay tax and insurance bills – would bring much negative and unwanted scrutiny not only upon individual companies but the industry as a whole.

To read the entire article. please visit: http://reversemortgagedaily.com/2010/03/22/hud-reverse-mortgage-foreclosures-will-they-or-won%E2%80%99t-they/

Major Change in HUD/FHA Reverse Mortgage Program Welcomed

2010-03-26T10:51:00.002-04:00

Within this past week, two national reverse mortgage lenders have announced that they will no longer charge a monthly servicing fee on their fixed-rate FHA guaranteed reverse mortgage product. Ken Keranen, a 17-year field savvy reverse mortgage industry veteran, welcomes this recent development. The monthly servicing fee, Keranen feels, is the hardest concept for new loan officers, HUD counselors, financial advisors and seniors to grasp, let alone explain.

To read the entire article. please visit: http://www.expertclick.com/NewsReleaseWire/Major_Change_in_HUDFHA_Reverse_Mortgage_Program_Welcomed,201031250.aspx

New Policy on Foreclosures and Defaults Intended to be Preventive says FHA

2010-03-26T10:45:00.002-04:00

Reflecting the extreme sensitivity of the issue, explanations, retrenchments, and denials are being voiced in response to an RMD story earlier this week about HUD’s intent – or not – to foreclose on seniors whose properties have gone into “technical” or other default. “There will be some policy forthcoming on foreclosures and defaults, intended to be preventative,” according to Meg Burns, director, FHA Office of Single Family Program Development, speaking with RMD prior to leaving for a Central American trip next week. While refusing to say when the policy would be issued, Burns said it would be “before the end of the summer.

To read the entire article. please visit: http://reversemortgagedaily.com/2010/03/25/new-policy-on-foreclosures-and-defaults-intended-to-be-preventive-says-fha-3/

FHA Commissioner Stevens clears the Air

2010-03-19T15:33:00.001-04:00

National Mortgage Professional Magazine recently had an opportunity to chat with David H. Stevens, Assistant Secretary for Housing at the U.S. Department of Housing & Urban Development (HUD), and 27th Commissioner of the Federal Housing Administration (FHA). Established in 1934, the FHA was designed to promote stability in the housing market by insuring fixed-rate mortgages for qualifying applicants. Commissioner Stevens is responsible for oversight and administration of the $600 billion FHA insurance portfolio.

To read the entire article. please visit: http://nationalmortgageprofessional.com/news16299/fha-commissioner-stevens-clears-air-david-h-stevens-details-new-respa-rule-role-broker-and

Home Modification Loan Program - Help for the Homeowner Finally?

2010-03-19T10:34:00.002-04:00

According to Lewis Fairbanks a Home loan modification officer for the FHA - home loan modification programs (or home modification loan programs as they are sometimes called) are tripling in popularity. This is due largely to the huge numbers of folk getting laid off completely, or having their number of job hours reduced significantly. One other major reason why people are looking for a home loan modification program is the fact that many homeowners chose adjustable rate mortgages. Consequently, their interest rates have risen to levels that make it down right hard, and in some cases impossible for the homeowner to make payments

To read the entire article, please visit: http://www.webwire.com/ViewPressRel.asp?aId=114450

FHA Says Higher Down Payments Risks Double-Dip Price Decline

2010-03-19T10:31:00.001-04:00

Responding to critics, officials of the Federal Housing Administration are set to warn in Congressional testimony Thursday that a double-dip decline in housing prices may result from even a slight increase in minimum down payments on FHA-backed loans. An increase in down payments to 5%, from the current minimum 3.5%, would limit new FHA-backed loans by 40%, equivalent to 300,000 fewer home sales, according to testimony that FHA Commissioner David Stevens is set to deliver on Thursday.

To read the entire article. please visit: http://blogs.wsj.com/developments/2010/03/11/fha-says-higher-down-payments-risks-double-dip-price-decline/

Changes to FHA lending

2010-03-19T10:08:00.001-04:00

This morning, in an interview with Diana Olick of CNBC, David Stevens (the FHA Commissioner) discussed changes coming to FHA this summer. Besides a slightly higher down payment and stricter underwriting criteria, FHA is increasing their upfront mortgage insurance premium from its current 1.75% to 2.25% on all applications received on or after April 5, 2010. However, not all news is bad news. Under the FHA Reform Act of 2010, anyone with a credit score between 500 and 579, and at least a 10% down payment, can probably obtain FHA financing. Additionally, purchasers with 5% or 10% to put down on a home could see lower mortgage insurance premiums.

To read the entire article, please visit: http://www.examiner.com/x-26969-Kansas-City-Real-Estate-Examiner~y2010m3d18-Changes-to-FHA-lending