FHA Breaking News :

FHA the treat For the Mortgage Refinance Hangover

noreply@blogger.com (Editor in Chief) — Fri, 05 Mar 2010 15:53:00 +0000

In 2004 the popularity of adjustable rate mortgages, also known as ARM's was shocking. 5/1 and 7/1 ARMS were in the 4% range so the lure of these teaser rate mortgages was not so shocking. 2005 saw the interest rates begin to rise, but the 5/1 ARM's remained in the low 5% range for home buying and refinancing rates. Mortgage lenders and brokers I interviews seemed to always ask the same question - How long can these low rates last?

To read the entire article, please visit: http://www.opednews.com/populum/diarypage.php?did=15958

Mortgage Servicers Suggest Aid Plan For Jobless

noreply@blogger.com (Editor in Chief) — Fri, 05 Mar 2010 15:47:00 +0000

The Mortgage Bankers Association proposed a forbearance program Wednesday aimed at helping the unemployed pay their mortgages for up to nine months. Under the proposal, loan servicers would reduce eligible borrowers' monthly payments to no more than 31% of their household income for up to nine months. Unlike a modification, however, the arrears would be tacked onto the end of the mortgage.

To read the entire article, please visit: http://money.cnn.com/2010/02/24/real_estate/forbearance_for_unemployed/index.htm

FHA Loan Defaults Surpass 9%

noreply@blogger.com (Editor in Chief) — Fri, 26 Feb 2010 17:26:00 +0000

Officials at the Federal Housing Administration take every opportunity they can to assure the public that the agency is weathering the housing downturn just fine. But the latest batch of numbers show that defaults on loans backed by the government insurer show no signs of slowing. Loan defaults crossed the 9% mark in December, ending the year at 9.12%, up from 6.82% one year earlier and 8.94% at the end of November. Through 2009, the agency had insured 5.8 million loans worth $752.6 billion, or a 24% increase from one year ago.

To read the entire article, please visit : http://blogs.wsj.com/developments/2010/02/09/fha-loan-defaults-surpass-9/

UPDATE 1-FHA Strong Enough To Play Key Role in Down Mkt-HUD

noreply@blogger.com (Editor in Chief) — Fri, 26 Feb 2010 17:24:00 +0000

The Federal Housing Administration has taken sufficient steps to shore up its balance sheet to play a key role in funding home purchases where the private mortgage market has fallen short, Housing and Urban Development Secretary Shaun Donovan said on Tuesday. "FHA has taken the kinds of steps necessary to make sure that it will remain strong and healthy enough to continue to fulfill its mission of serving the underserved and playing a vital counter-cyclical role in the housing market," Donovan pledged in prepared testimony on the agency's budget to lawmakers on Capitol Hill.

To read the entire article, please visit : http://www.reuters.com/article/idUSN2311642220100223

Assumability: A Hidden Potential Value To FHA Loans

noreply@blogger.com (Editor in Chief) — Fri, 26 Feb 2010 17:21:00 +0000

Does the assumability option on Federal Housing Administration loans offset their high mortgage insurance premiums? That is a great and very timely question. The value of assumability is as high as it is ever likely to be because of the broad consensus that interest rates in future years will be higher than they are now. Loans insured by the FHA are assumable; conventional loans, with a few exceptions, are not. That means that a home buyer who finances the purchase with an FHA-insured loan and who sells the house later, when interest rates are higher, will be able to offer a potential buyer the right to assume his low-rate FHA loan.

To read the entire article, please visit : http://www.washingtonpost.com/wp-dyn/content/article/2010/02/18/AR2010021806648.html

Foreclosures Sales Programs of HUD and VA Tweaked for Buyers

noreply@blogger.com (Editor in Chief) — Fri, 19 Feb 2010 15:31:00 +0000

The foreclosures sales programs of the Departments of Housing and Urban Development and Veterans Affairs have been tweaked and fine-tuned to entice more buyers and ultimately cut down the real estate holdings of the HUD and the VA. The number of HUD foreclosures has been soaring because more and more Americans are using home loans guaranteed by the Federal Housing Administration to purchase homes, and out of these borrowers, many have been defaulting on their loans. According to FHA reports, about 30 percent of newly originated home loans are guaranteed by FHA. A huge majority of mortgage loans taken out by first time buyers are also guaranteed by FHA.

To read the entire article, please visit : http://www.ibtimes.com/contents/20100218/foreclosures-sales-programs-hud-vaweaked-buyers.htm

Appraisal Management Companies Will Be Ready for New FHA Appraisal Rules: TAVMA

noreply@blogger.com (Editor in Chief) — Fri, 19 Feb 2010 15:29:00 +0000

Title/Appraisal Vendor Management Association (TAVMA), the trade association that represents the nation's largest appraisal management companies (AMCs), said today that its members are prepared to help lenders comply with the changes in appraisal ordering announced by the Federal Housing Administration (FHA) that went into effect February 15, 2010. The new guidelines prohibit mortgage brokers from directly ordering appraisals for FHA loans. Earlier this year, Fannie Mae and Freddie Mac implemented a similar policy as part of their Home Valuation Code of Conduct (HVCC)."Our members, the nation's largest appraisal management companies, already have significant panels of FHA-certified appraisers," said Jeff Schurman, Executive Director of TAVMA.

To read the entire article, please visit : http://www.prnewswire.com/news-releases/appraisal-management-companies-will-be-ready-for-new-fha-appraisal-rules-tavma-84469057.html

Administration Releases January Loan Modification Report

noreply@blogger.com (Editor in Chief) — Fri, 19 Feb 2010 15:27:00 +0000

The U.S. Department of the Treasury and the Department of Housing and Urban Development (HUD) today released January data for the Administration's Home Affordable Modification Program (HAMP), demonstrating that the number of homeowners receiving immediate relief and converting to permanent modifications continues to rise. More than 116,000 homeowners now have permanent modifications, nearly doubling the number from December, which also marked record progress. An additional 76,000 permanent modifications have been offered, and are waiting only for the borrower's signature. In total, Over 1 million homeowners have started trial modifications and nearly 1.3 million offers for trial modifications have been extended to homeowners.

To read the entire article, please visit : http://portal.hud.gov/portal/page/portal/HUD/press/press_releases_media_advisories/2010/HUDNo.10-033

Congressman Introduces Mortgage E-Verify Act for GSE and FHA Mods

noreply@blogger.com (Editor in Chief) — Fri, 12 Feb 2010 21:37:00 +0000

Kenny Marchant has introduced a new bill, the Mortgage E-Verify Act. It would require a mortgagor to be verified under the E-Verify program as a condition for modification of a home loan held by Fannie Mae or Freddie Mac, or insured by the Federal Housing Administration (FHA). The E-Verify program is a voluntary, Web-based system run by the federal government to help businesses certify that potential employees are legally authorized to work in the United States.

To read the entire article, please visit : http://www.dsnews.com/articles/congressman-introduces-mortgage-e-verify-act-for-gse-and-fha-mods-2010-02-11

FHA Eyes Rules Change

noreply@blogger.com (Editor in Chief) — Fri, 12 Feb 2010 15:33:00 +0000

Currently FHA has been playing a large role in home mortgage lending. The relatively easy-to-qualify-for and low down payment requirements have made FHA loans attractive to many of today’s home buyers. FHA does not actually loan money to home buyers, but insures lenders against default on loans that meet FHA criteria. Some rule changes are on the way for FHA guidelines. They will include higher upfront insurance premiums. Current buyers pay 1.75% of the loan amount; that will go to 2.25%, the second increase in two years.

To read the entire article, please visit : http://www.mesquitelocalnews.com/viewnews.php?newsid=4756&id=58

Defaults on FHA Mortgages Pass 9 Percent

noreply@blogger.com (Editor in Chief) — Fri, 12 Feb 2010 15:32:00 +0000

The default rate in the single-family FHA portfolio reached 9.12% in Q409, climbing from 6.82% in Q408, according to the Federal Housing Administration December monthly report. The total number of FHA-insured single-family mortgages in default reached 531,671 in Q409, a 66% increase from 319,741 in Q408. In that same period, modifications on FHA-backed loans increased 54% to 23,973 in Q409.

To read the entire article, please visit : http://www.housingwire.com/2010/02/10/defaults-on-fha-mortgages-pass-nine-percent/

To Boost Sales Of Foreclosures, FHA Suspends Anti-flipping Rules

noreply@blogger.com (Editor in Chief) — Fri, 05 Feb 2010 16:00:00 +0000

Call it three birds with one stone: The federal government hopes to help low-down-payment home buyers, investors who fix up foreclosures, and communities burdened with too many bank-owned and foreclosed homes -- all with one potentially far-reaching policy change. The Federal Housing Administration is revising its long-standing anti-flipping rules starting Feb. 1 and just might score a hit with all three target groups. For years, the FHA has had a strict prohibition: It wouldn't insure a mortgage on a house if the seller had owned it for less than 90 days.

To read the entire article, please visit: http://www.washingtonpost.com/wp-dyn/content/article/2010/01/28/AR2010012804704.html

HUD FY2011 Budget Focuses On Fiscal Discipline, Investing In People And Places

noreply@blogger.com (Editor in Chief) — Fri, 05 Feb 2010 15:58:00 +0000

Housing and Urban Development (HUD) Secretary Shaun Donovan today unveiled the Department’s fiscal year 2011 budget proposal, following President Barack Obama’s presentation of his Administration-wide budget. The HUD budget focuses on fiscal discipline, creating jobs and builds on the administration’s first year accomplishments by proposing reform in HUD’s housing and community development programs to make them more streamlined, efficient, and accountable.

To read the entire article, please visit: http://portal.hud.gov/portal/page/portal/HUD/press/press_releases_media_advisories/2010/HUDNo.10-026

Yet Another Try At Foreclosure Rescue

noreply@blogger.com (Editor in Chief) — Fri, 05 Feb 2010 15:54:00 +0000

Under fire for the low number of people receiving long-term mortgage help, the Treasury Department on Thursday announced new guidelines that will require applicants to provide all paperwork before getting a trial modification. The new policy will make it harder for troubled homeowners to start the process, but it should make it easier for them to qualify for permanent assistance under President's Obama foreclosure prevention plan

To read the entire article, please visit: http://money.cnn.com/2010/01/28/news/economy/loan_modification/index.htm

Obama's Loan Modification Plan

noreply@blogger.com (Editor in Chief) — Tue, 26 Jan 2010 15:39:00 +0000

To everyone who was paying attention, many homeowners needed more bailout help in 2009 than the Wall Street bankers. Help did finally arrive in Obama’s Loan Modification Plan. It shared several names including HARP and the 125 Plan. What’s news is the administration’s Loan Modification Plan allows homeowners to refinance their current mortgage payments up to that of 125% of the present property value of the property. This is critical with many properties losing most or all of their equity over the last year. It now let’s mortgage holders refinance their current mortgage payments up to an amount equal to 125% of the present property value.

To read the entrie article, please visit: http://www.release-news.com/index.php/finance/1205-new-section-of-obamas-loan-modification-to-help-provide-mortgage-relief-for-homeowners

FHA Relaxes Resale Requirements!

noreply@blogger.com (Editor in Chief) — Tue, 26 Jan 2010 15:37:00 +0000

So on the lending front many things have changed. The FHA loan program which is driving the majority of sales in todays market has adjusted multiple times and recently there has been another adjustment, which might just make it more attractive for purchasers to take a chance on a foreclosed property in disrepair. For years the FHA required purchasers must put 3% of the sales price into the deal. Yet limited their responsibility to that, meaning any additional fees the seller was required to pick up the slack on behalf of the purchaser.

To read the entrie article, please visit: http://www.examiner.com/x-1606-DC-Real-Estate-Examiner~y2010m1d21-FHA-relaxes-resale-requirements

FHA Withdraws Approval of Three Lenders and Suspends a Fourth

noreply@blogger.com (Editor in Chief) — Tue, 26 Jan 2010 15:30:00 +0000

The Federal Housing Administration’s Mortgagee Review Board (MRB) has announced that it is immediately and permanently withdrawing the FHA approval of three mortgage lenders and is suspending a fourth. The MRB withdrew the FHA approval of Strategic Mortgage Corporation (Strategic), ProMortgage Inc., and Americare Investment Group Inc. (doing business as Premier Capital Lending. Additionally, the MRB has suspended the FHA approval of Home Mortgage Inc. (HMI) of Burr Ridge, Ill. “FHA takes its oversight role very seriously and will move swiftly and decisively to protect borrowers from unscrupulous lenders,” said FHA Commissioner David Stevens.

To read the entrie article, please visit: http://nationalmortgageprofessional.com/news15639/fha-withdraws-approval-three-lenders-and-suspends-fourth

HOUSING: FHA Loosens Loan Modification Rules

noreply@blogger.com (Editor in Chief) — Fri, 22 Jan 2010 22:08:00 +0000

Homeowners can now apply for a federally backed mortgage modification program before they get behind on mortgage payments, the Federal Housing Administration announced Friday. A change in the rules will allow homeowners who experience a sudden loss of income or other financial distress to apply for a loan modification though the Housing Affordable Modification Program before they miss a payment. Previous rules only admitted homeowners who were at least 60 days behind.

To read the entire article, please visit: http://www.nctimes.com/business/article_7f904588-6841-553a-b3ce-51844aa6941e.html

New FHA Loan Requirements Won't Negatively Affect Most

noreply@blogger.com (Editor in Chief) — Fri, 22 Jan 2010 16:41:00 +0000

The Federal Housing Agency has announced changes to its lending practices for loans most popular with first time home buyers, but local experts said this will mean little change to most potential buyers. "With all the big banks we read about that are having problems and everything else, they want to make sure that these lenders and FHA, which is more of an insurance program for loans, is around for a long, long time," said Hart Weatherford, president of Nashville based Farmington Financial Group.

To read the entire article, please visit: http://www.newschannel5.com/Global/story.asp?S=11861022

FHA Changes Rules

noreply@blogger.com (Editor in Chief) — Fri, 22 Jan 2010 16:38:00 +0000

FHA backed mortgages which have increased dramatically in the Sacramento area during the past few years and have allowed many first time buyers get into a home will be harder to obtain. The changes announced this week by the Federal Housing Administration also included a provision which may accelerate the recovery of the Sacramento real estate market. The FHA makes it possible for buyers to get a mortgage with a down payment of just 3.50 percent compared to the standard 20 percent for a conventional loan.

To read the entire article, please visit: http://www.rocklintoday.com/news/templates/realestate_california.asp?articleid=8523&zoneid=48

Picking The Sweet Spot In Real Estate

noreply@blogger.com (Editor in Chief) — Fri, 22 Jan 2010 16:33:00 +0000

First the housing market tanked, eventually sending home prices down 30% from their 2006 peak. Then came warnings that commercial real estate would be the next shoe to drop -- and that the problems could dwarf those in the residential market. Lately the signs of distress have become starkly visible: Prices of commercial property such as apartment buildings, malls, and offices have fallen more than 40% over the past two years. Rents are down, and vacancies are at their highest levels in more than two decades.

To read the entire article, please visit: http://money.cnn.com/2010/01/12/pf/investing_reits.moneymag/index.htm

Week-to-Week Mortgage Applications Rise 14.3%: MBA

noreply@blogger.com (Editor in Chief) — Fri, 15 Jan 2010 21:28:00 +0000

Mortgage applications rose a seasonally adjusted 14.3% last week as interest rates on fixed-rate mortgages fell, the Mortgage Bankers Association said Wednesday. Refinancing applications jumped 21.8% in the week ended Jan. 8 compared with the week before, which was shortened for the New Year's holiday. Applications for mortgages to purchase homes rose a seasonally adjusted 0.8% on a week-to-week basis.

To read the entire article, please visit: http://www.marketwatch.com/story/week-to-week-mortgage-applications-rise-143-mba-2010-01-13

Current Mortgage Rates Conf/FHA Steady

noreply@blogger.com (Editor in Chief) — Fri, 15 Jan 2010 16:32:00 +0000

Prices of mortgage backed securities are up just a tad today steadying current mortgage rates, both conforming and FHA, under 5%. In the past few days we’ve seen FHA mortgage rates, particularly FHA 30 year fixed mortgage rates, dip below conforming mortgage rates. MBS prices, of which current mortgage rates move opposite, were pushed up today by weak economic data. In late 2009 mortgage rates set all time record lows when 30 year fixed mortgage rates dipped to 4.5% onsurging mortgage backed securities prices.

To read the entire article, please visit: http://www.freerateupdate.com/current-mortgage-rates-steady-current-30-yr-at-4-875-fha-30-yr-at-4-75-still-2363

FHA Insider: Getting the FHA Business ... Presentation and Paradigm

noreply@blogger.com (Editor in Chief) — Fri, 15 Jan 2010 16:27:00 +0000

I’ve been asked many times by loan officers just how to develop Federal Housing Administration (FHA) business. My patent response is: “You have to brand yourself as an FHA specialist, get out there and give FHA presentations to your FHA referral sources, and then, follow up.” If you are proficient in the basic FHA guides and want FHA business, you need to make yourself the resource for FHA information. Remember, one of the biggest burdens a real estate broker has is providing useful and effective training to their agents. The FHA guides are so vast and change quite often, even we loan officers have a hard time keeping up.

To read the entire article, please visit: http://nationalmortgageprofessional.com/news15467/fha-insider-getting-fha-business-presentation-and-paradigm

FHA to Lenders: ‘We Are Watching You Very Carefully’

noreply@blogger.com (Editor in Chief) — Fri, 15 Jan 2010 16:24:00 +0000

The Federal Housing Administration initiated on Tuesday a probe of 15 mortgage companies that have disproportionately high default rates on loans insured by the government agency. Officials served subpoenas on the companies on Tuesday. The agency is looking at mortgage companies that have had above-average rates of loans that default shortly after origination, which is often a sign of fraud or sloppy underwriting.

To read the entire article, please visit: http://blogs.wsj.com/developments/2010/01/13/fha-to-lenders-we-are-watching-you-very-carefully/