HUD says FHA loan-downpayment assistance from housing authorities is 'legal'

SOURCE: Mortgage News Feed

Federal Housing Administration (FHA) top gun Ed Golding signaled this week that borrowers receiving downpayment assistance would continue to be eligible for agency-backed loans despite the heightened scrutiny of these programs from the auditing wing of FHA’s overseer, the U.S. Department of Housing and Urban Development (HUD).  In a blog post, Golding wrote that the FHA will continue to insure loans that get downpayment assistance from state and local housing authorities. Last year, HUD’s Office of Inspector General flagged several hundred FHA loans originated by NOVA and loanDepot for receiving “ineligible gifts”  from housing and development authorities. The Inspector General deemed the loans were likely ineligible for FHA endorsements, and their riskiness put the insurance fund at risk. Read Full Article Here >> 

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Each week we post articles on FHA/VA Government news topics, ranging from FHA Direct Endorsement Underwriters, to current FHA underwriting guidelines, to new FHA rules/regulations, FHA compliance, FHA lending requirements and much more! PLEASE NOTE: We are NOT owned, operated or affiliated with HUD, FHA or the Federal Government in any way.

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