Knowledge Is King: Embracing First-Time Homebuyers With Education

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%

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

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 The previous policy of allowing one-time, or "spot approval," for individual units was rescinded.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

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?

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

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

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

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

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

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

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