NAMP Predicts FHA Loans to Replace Sub-Prime.

The National Association of Mortgage Processors (NAMP) predicts FHA loan programs may start to replace Sub Prime mortgages in the months ahead. Embracing this shift, NAMP has partnered with the nation's leading FHA training school, FHA Online University, to offer live, instructor-led online FHA training classes to students nationwide.

Washington, D.C. (PRWEB) April 28, 2007 -- The National Association of Mortgage Processors (NAMP) predicts FHA loan programs may start to replace Sub Prime mortgages in the months ahead. Embracing this shift, NAMP has partnered with the nation's leading FHA training school, FHA Online University, to offer live, instructor-led online FHA training classes to students nationwide.

In recent months, some of the mortgage industry's top Sub Prime players (New Century Financial Corp., People's Choice Financial Corp. and others) have gone out of business. With a fall out in the Sub Prime mortgage space, FHA loans have become an attractive option among borrowers seeking an alternative financing solution.

As the government's largest mortgage program, the Federal Housing Administration (FHA) loan has been basically a low down payment source for first time homebuyers with issues with their credit, but who could fully document their income and assets. In recent times the Federal Housing Administration has made some significant changes. According to FHA Commissioner Brain D. Montgomery, the agency has shifted from its historical emphasis on the repair of minor property deficiencies and now only requires repairs for those property conditions that rise above the level of cosmetic defects, minor defects or normal wear and tear.

NAMP's recent partnership with FHA Online University creates a unique, cost-effective way for mortgage processors and loan originators across the country to obtain sound FHA processing, sales & compliance education, taught by FHA industry veterans.

About FHA.The Federal Housing Administration, generally known as "FHA", provides mortgage insurance on loans made by FHA-approved lenders throughout the United States and its territories. FHA insures mortgages on single family and multifamily homes including manufactured homes and hospitals. It is the largest insurer of mortgages in the world, insuring over 34 million properties since its inception in 1934. For information, visit http://www.fha.gov/.

About NAMP. Based in the heart of Washington D.C., the National Association of Mortgage Processors (NAMP) is known throughout the mortgage processing industry as the voice of today's mortgage processor. NAMP is dedicated to assisting contract loan processors as well as in-house mortgage loan processors, in all aspects of their business. For more information, visit NAMP online at: http://www.mortgageprocessor.org/.

About FHA Online University. FHA Online University offers live, instructor-led online FHA training classes to students nationwide. For more information, visit http://www.fhatraining.org/.

NAMP and FHA Online University Team up to Educate Mortgage Professionals about the New FHASecure Initiative.

The National Association of Mortgage Processors (NAMP) is offering online classes through FHA Online University to enable mortgage professionals help borrowers through the recently developed FHASecure initiative. Through FHA Online University's FHASecure course, borrowers with good credit will be able to rebound from the strains of the currently volatile mortgage market.

Washington, D.C. (PRWEB) September 23, 2007 -- What is buzz worthy in the world of mortgage professionals? The National Association of Mortgage Processors has teamed up with FHA Online University to educate professionals about the new initiative called FHASecure.

Specifically designed to bring stability to the real estate market by truncating the current trend of foreclosures and price depreciation, FHASecure promises to create possibility and flexibility in a previously restrictive mortgage market, and extends to those with little or no equity and a previously less-than-perfect credit history. Borrowers with no 30-day late payment in the 6 months prior to recasting their interest rate are eligible. The partnership between NAMP and FHA Online University is based on dedication to helping mortgage professionals gain the edge they need to utilize FHASecure and better help homeowners.

The Federal Housing Administration (FHA) has taken measures to reduce the impact to all involved in the fluctuating loan resets of the current mortgage market. Importantly, the measures taken by FHASecure was created by the US Department of Housing and Urban Development (HUD.gov) in response to the rising foreclosure crisis which resulted from homeowners with less-than-perfect credit refinancing into subprime products with adjustable rate features. These recently began to fluctuate upward into the range of significant payment increases and the subsequent impact of unaffordable monthly housing expenses.

The FHASecure program will aid both borrowers suffering losses as a result of doubling and tripling loan rates, as well as the lenders who have been working hard to help lessen this blow. Under the FHASecure plan, families will be rewarded for having strong credit histories and making timely mortgage payments. These homeowners will be given the option for refinancing, providing the necessary chance to rebound from the impact caused by the aforementioned spike in loan rates.

The risk-based premium pricing that operates under FHASecure will allow the FHA to avoid risk-impact and remain self-financed. This means that the program will still extend its services to traditionally underserved markets, such as first time homebuyers with limited funds as well as other minority groups, with rates proportional to the unique risk conditions of these homeowners. This risk-based pricing is slated to take effect on January 1, 2008.

Part of the excitement surrounding this notable program is that it will help an estimated 240,000 families to immediately avoid foreclosure. "The Federal Housing Administration has always been commited to serving the American public by providing affordable homownership options and programs. FHASecure is another example of how FHA will continue to make homeownership an affordable reality to the American public," says Bonnie Hildt, lead FHA instructor for FHA Online University. Indeed, the initiative of mortgage professionals is always to help homeowners by providing safe options and sensible solutions. Uniquely, FHA Online University provides the opportunity for mortgage professionals to gain the expertise and know-how necessary to navigate the FHASecure plan.

Daily, mortgage professionals well versed in FHASecure will have the power to help families maintain a comfortable life. NAMP is excited about their role in helping more mortgage professionals become adept at utilizing FHASecure through FHA Online University. Understanding FHASecure could have widespread positive impact, providing more possibility and hope, for the status of many American homeowners.

Building a wide knowledge base is crucial for mortgage processors to perform best. Taking the simple steps toward completing FHA Online University's course on FHASecure Refinancing will result in incredible growth and an undeniable edge for those mortgage processors. NAMP provides the opportunity for mortgage professionals to arm themselves with a unique knowledge base - one that encompasses FHASecure. The team created by NAMP and FHA Online University is dedicated to helping millions of Americans secure their own "American Dream."

Previous to the adoption of FHASecure, homeownership for hundreds of thousands of Americans balanced on the edge of a volatile market. Now, offering credit-worthy homeowners a refinancing option will be easy for mortgage professionals who complete the FHASecure Refinancing course. NAMP and FHA Online University's partnership is a unique and exciting opportunity for mortgage professionals to gain a wide knowledge base, understand and utilize today's programs and resources, and perform effectively and efficiently for the American public.

About NAMP. Based in the heart of Washington D.C., the National Association of Mortgage Processors (NAMP) is known throughout the mortgage processing industry as the voice of today's mortgage processor. NAMP is dedicated to assisting contract loan processors as well as in-house mortgage loan processors, in all aspects of their business. For more information, visit NAMP online at: http://www.mortgageprocessor.org/

About FHA Online University. FHA Online University offers live, instructor-led online FHA training classes to students nationwide. For more information, visit http://www.fhatraining.org/

FHA Reform to Provide Long Term Relief from Mortgage Market Constrictions

The currently volatile mortgage market is in for a permanent change with the proposed FHA Reform act. If passed, this bill will create greater protection for American homeowners by providing alternatives to the sub prime loans and other undesirable financing options. Importantly, undeserved markets, first time homebuyers, and those with a credit history tarnished by market fluctuations, will now become eligible for manageable and favorable financing options that are tailored to their personal needs.

Washington, D.C. (PRWEB) September 28, 2007 -- The National Association of Mortgage Processors (NAMP) constantly looks toward positive change in the mortgage market, and are pleased to focus on the recently approved FHA Reform, or FHA Modernization. Approved on May 3, 2007 by the U.S. House Financial Services Committee, the new bill now awaits a vote by the full House of Representatives. Adoption of this bill provides exciting opportunity for mortgage professionals to safeguard borrowers from high interest rates and excessive fees, as well as open the doors open for Adjustable rate mortgages. The FHA Reform may become a competitive alternative in the market, moving to replace sub prime and other similar mortgage products that were less solid and desirable financing options for homeownership.

Recent reforms such as FHA Secure have initiated change in the right direction. "With FHA Secure there is the potential to have a huge impact on the mortgage industry and homeowners nationwide," says Stacey Sprain, a Certified Ambassador Loan Processor (CALP) for the National Association of Mortgage Processors. FHA Reform will be a permanent continuation of the temporary FHA Secure initiative, providing long-term safe and affordable alternatives for homebuyers.

Mortgage professionals can become a part of the effort to protect borrowers by educating themselves on changes in the mortgage market. Enrolling in FHA Online University's classes, which embrace recent FHA Reform, will help mortgage professionals to maximize their effectiveness by gaining the knowledge to utilize FHA Reform. Relevant include FHA Processing, for processors; FHA Underwriting, for underwriters; and FHA DE Underwriting, direct endorsement, and NAMP is excited to have partnered with FHA Online University to provide educational advancement for those working within the mortgage market.

An important aspect of the proposed FHA Reform act is the increase of HUD's current statutory loan limits. Under the proposed move toward modernization, maximum mortgage limits could be set at those equal to FNMA/FHLMC single-family loan limits of $417,000. This provision will become a possibility once the FHA analyzes local markets to determine whether such an increase is justified. FHA Reform would also move toward changing the borrower's minimum required investment guideline, proposing a payment change of the borrower's minimum investment from 3% to 1.5%. The result includes providing FHA borrowers a greater wealth of options concerning personal control of down payment and mortgage payment amounts, based on their own current and future financial goals, such as the ability for borrowers in high cost areas to utilize FHA mortgage insurance as an alternative to a sub prime loan.

First time homeowners will also benefit from lower and more flexible down payment options. The new FHA underwriting guidelines enables borrowers with past credit issues that exclude them from the Community Homebuyer program to now become viable candidates for FHA financing. They will thus be protected from previously unaffordable mortgage loans, such as high interest rate Adjustable Rate Mortgages.

Furthermore, FHA Reform will increase the maximum loan term from the current 30-year limit to 40 years. The effect of this longer loan term is that monthly payments will decrease while homeowners simultaneously gain the ability to build equity through a fully amortized loan. The FHA Reforms will also allow the FHA to raise or lower mortgage insurance premiums to match the borrower's risk. Thus, the FHA borrower receives a loan rate at market interest, extended over a longer period for a resulting reduced monthly mortgage payment.

Slated to end in December of 2008, the FHA Secure plan has been a temporary, though much needed, fix to the volatile market of the past five years - a market that rested on foreclosure problems and excessive sub prime, and that found itself consumed by predatory lending practices. The modernization of FHA Reform proposes a lasting cure, with an impact both immediate and extending into the future of the mortgage market. "By introducing the current reforms, the Department of Housing and Urban Development has created a mortgage product that is just as competitive in the market place as the more traditional conforming loan programs being administered by FNMA and FHLMC under their community homebuyer programs. With the proposed reforms and standard FHA underwriting criteria, homeownership should now be an affordable reality for most Americans," says Bonnie Wilt-Hild, lead FHA instructor for FHA Online University.

FHA Reform is an exciting opportunity for mortgage professionals to carry out the initiatives begun by FHA Secure. The American public will gain strides toward affordable financing options, especially for undeserved populations, moderate-income brackets, and first time homebuyers. The first step in providing increased loan limits, lower and more flexible down payment options lies with mortgage processors utilizing the resources created by the FHA to provide a stable, effective product that will create opportunity for the American public and turn the dream of homeownership into a widespread and lasting reality.

About NAMP Based in the heart of Washington D.C., the National Association of Mortgage Processors (NAMP) is known throughout the mortgage processing industry as the voice of today's mortgage processor. NAMP is dedicated to assisting contract loan processors as well as in-house mortgage loan processors, in all aspects of their business. For more information, visit NAMP online at: http://www.mortgageprocessor.org/

About FHA Online University FHA Online University offers live, instructor-led online FHA training classes to students nationwide. For more information, visit http://www.fhatraining.org/