FHA the treat For the Mortgage Refinance Hangover

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

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%

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

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

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

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

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

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