New Home Sales, and Prices Continue to Fall

According to a recent government report, both the sale and the prices of new homes fell again during the month of May, doing nothing to relieve the currently dismal state of the nation’s housing market. The largest drop of home sales occurred in the West, followed by the Northeast. Interestingly, sales in the Midwest and South each experienced an increase. Despite this activity in the housing market, the Fed is expected to maintain the current interest rates.

For the complete story, please visit:
http://www.msnbc.msn.com/id/25367217/

New Mortgagee Letter Issued to Non FHA-approved Mortgage Brokers

A new Mortgagee Letter has been issued to remind lenders of existing FHA policy. This letter regards the use of non FHA-approved mortgage brokers when originating FHA-insured forward mortgages, and outlines the fact that FHA loan origination services must be performed by a FHA-approved lender or FHA-approved mortgage broker (loan correspondent). In terms of compensation, an FHA-approved loan correspondent may be compensated for the actual loan origination services that are performed either directly by the consumer or indirectly by the FHA-approved lender.

To read this mortgagee letter and the details please visit: http://www.hud.gov/offices/adm/hudclips/letters/mortgagee/08-17ml.doc

$350 M Mississippi Affordable Housing Plan Accepted by HUD

According to HUD, a $350 Million plan by the State of Mississippi was recently accepted. This plan aims to construct thousands of affordable housing units for working families who still struggle to secure housing as a result of the ongoing state-wide housing shortage. Furthermore, this plan will ensure that significant portions of affordable units are produced within mixed-income neighborhoods in order to specifically assist these working families, as a continued effort to help the tens of thousands of Mississippi families whose homes were damaged or destroyed in the wake of Hurricane Katrina.

For full details on the Mississippi plan, please visit:
http://www.hud.gov/news/release.cfm?content=pr08-089.cfm