Mortgage rates surged this week, marking their highest point in nearly two months and adding fresh pressure on an already fragile spring homebuying season. The spike, driven largely by rising bond yields and escalating market uncertainty, is threatening to sideline more prospective buyers just as the housing market was showing signs of modest recovery.
As the U.S. housing market slows under the weight of high interest rates and shrinking affordability, major banks are lobbying regulators for a revamp of mortgage rules they say are outdated and overly restrictive. Industry leaders argue that simplifying the current framework could ease lending bottlenecks and bring more borrowers back into the market—especially first-time buyers and lower-income households. The push comes as home sales continue to slump and mortgage originations sit well below historical norms.
A sharp uptick in mortgage delinquencies among first-time homebuyers is raising red flags for the housing industry, particularly for borrowers using government-backed loans. These trends suggest that some of the most financially vulnerable homeowners are increasingly struggling to stay current on their payments, amplifying concerns about affordability, inflation, and broader market risk.
The Trump administration’s revived plan to privatize Fannie Mae and Freddie Mac is stoking fresh debate in Washington and on Wall Street, with experts warning that such a move could push mortgage rates higher and pose new challenges for homebuyers across the country. At the heart of the discussion lies a pivotal question: Can the U.S. housing market handle a shift away from government-backed mortgage guarantees?
The U.S. homebuilding sector found a modest silver lining in former President Donald Trump’s latest wave of tariff announcements. While much of the construction industry braces for higher costs, one crucial material—Canadian lumber—was notably spared from additional duties. That exemption, however, isn’t enough to ease broader concerns across the housing market, where rising costs and slowing demand are already testing builders' limits.
For those of us that work with many first-time homebuyers or low-to-moderate income buyers, we may from time-to-time come across a client that has a Section 8 Homeownership Voucher. This program was introduced by HUD as a way to increase homeownership for low-to-moderate income families. It works very similar to the Section 8 Rental assistance program in which the voucher will pay a portion of the borrower’s mortgage payment each month for up to 15 years or the entire term of the mortgage if one of the borrowers is disabled.
Opinion-Editorial (Op-Ed) Disclaimer For NAMP® Library Articles: The views and opinions expressed in the NAMP® Library articles are those of the authors and do not necessarily reflect any official NAMP® policy or position. Examples of analysis performed within this article are only examples. They should not be utilized in real-world application as they are based only on very limited and dated open source information. Assumptions made within the analysis are not reflective of the position of NAMP®. Nothing contained in this article should be considered legal advice.
As volume continues to grow where overall originations of the FHA 203k program is concerned, so of course do errors. I realize that many of the lenders currently underwriting the program are proficient where policy and procedure for this program is concerned, however there are those lenders that are still somewhat new to the program and I thought I would share a little insight as to a few things to keep in mind while underwriting and servicing the program which hopefully spare some of you later issues with both HUD and your investors.
Opinion-Editorial (Op-Ed) Disclaimer For NAMP® Library Articles: The views and opinions expressed in the NAMP® Library articles are those of the authors and do not necessarily reflect any official NAMP® policy or position. Examples of analysis performed within this article are only examples. They should not be utilized in real-world application as they are based only on very limited and dated open source information. Assumptions made within the analysis are not reflective of the position of NAMP®. Nothing contained in this article should be considered legal advice.
HUD finally “threw us a bone” on Wednesday when they posted their Moratorium on Risk Based Premiums at the FHA website. According to the Moratorium, the new premiums will be required for cases assigned on and after October 1st, 2008 through September 20th of 2009.
Opinion-Editorial (Op-Ed) Disclaimer For NAMP® Library Articles: The views and opinions expressed in the NAMP® Library articles are those of the authors and do not necessarily reflect any official NAMP® policy or position. Examples of analysis performed within this article are only examples. They should not be utilized in real-world application as they are based only on very limited and dated open source information. Assumptions made within the analysis are not reflective of the position of NAMP®. Nothing contained in this article should be considered legal advice.
I realize HUD’s Mortgage Letter 2009-15 generated a lot of excitement and buzz for the industry upon it’s posting on May 12th but no one was more pleased to see HUD retract it just as quickly on May 13th than I. Please note that when I voice my pleasure for the retraction, it certainly doesn’t include any nod for HUD’s methods.
Opinion-Editorial (Op-Ed) Disclaimer For NAMP® Library Articles: The views and opinions expressed in the NAMP® Library articles are those of the authors and do not necessarily reflect any official NAMP® policy or position. Examples of analysis performed within this article are only examples. They should not be utilized in real-world application as they are based only on very limited and dated open source information. Assumptions made within the analysis are not reflective of the position of NAMP®. Nothing contained in this article should be considered legal advice.
As I’m sure we’ve all learned by now, HUD announced late last Wednesday afternoon that another extension had been issued in regards to the implementation of the new condominium project approval procedures mentioned in Mortgagee Letter 2009-19. I, for one, am extremely grateful for the additional time; though the extension was issued just as I was wrapping up a very thorough review of the Mortgagee Letter- go figure!
Opinion-Editorial (Op-Ed) Disclaimer For NAMP® Library Articles: The views and opinions expressed in the NAMP® Library articles are those of the authors and do not necessarily reflect any official NAMP® policy or position. Examples of analysis performed within this article are only examples. They should not be utilized in real-world application as they are based only on very limited and dated open source information. Assumptions made within the analysis are not reflective of the position of NAMP®. Nothing contained in this article should be considered legal advice.
The anticipated guidance from HUD in regards to the final Condo Policy finally arrived last week in the form of two Mortgagee Letters. ML 2009-46B, which replaces the previously issued ML 2009-19 and ML 2009-46A which communicates additional temporary guidance on a number of topics.
Opinion-Editorial (Op-Ed) Disclaimer For NAMP® Library Articles: The views and opinions expressed in the NAMP® Library articles are those of the authors and do not necessarily reflect any official NAMP® policy or position. Examples of analysis performed within this article are only examples. They should not be utilized in real-world application as they are based only on very limited and dated open source information. Assumptions made within the analysis are not reflective of the position of NAMP®. Nothing contained in this article should be considered legal advice.
I initially titled this article, “HUD Sues Lenders over Omission of Manufactured Housing Engineering Certificates,” but I decided that it might be a little over the top. But, the facts are this. A letter issued by the HUD Inspector General (MEMORANDUM NO: 2007-KC-0801) dated September 2007 recommended just that.
Opinion-Editorial (Op-Ed) Disclaimer For NAMP® Library Articles: The views and opinions expressed in the NAMP® Library articles are those of the authors and do not necessarily reflect any official NAMP® policy or position. Examples of analysis performed within this article are only examples. They should not be utilized in real-world application as they are based only on very limited and dated open source information. Assumptions made within the analysis are not reflective of the position of NAMP®. Nothing contained in this article should be considered legal advice.
Though I had planned to discuss FACTA this week, HUD recently issued a very important Mortgagee Letter with some long awaited news for all of us so let’s take a break from my series on credit and talk about Mortgagee Letter 2009-14! We’ll pick up right where I left off on the credit series next week.
Opinion-Editorial (Op-Ed) Disclaimer For NAMP® Library Articles: The views and opinions expressed in the NAMP® Library articles are those of the authors and do not necessarily reflect any official NAMP® policy or position. Examples of analysis performed within this article are only examples. They should not be utilized in real-world application as they are based only on very limited and dated open source information. Assumptions made within the analysis are not reflective of the position of NAMP®. Nothing contained in this article should be considered legal advice.
I usually check HUD’s Mortgagee website at least once daily for any signs of newly issued Mortgagee Letters that haven’t yet been announced. Today I see that Mortgagee Letter 2009-42 is posted and the subject is Sub-Servicing of FHA-Insured Mortgages.
Opinion-Editorial (Op-Ed) Disclaimer For NAMP® Library Articles: The views and opinions expressed in the NAMP® Library articles are those of the authors and do not necessarily reflect any official NAMP® policy or position. Examples of analysis performed within this article are only examples. They should not be utilized in real-world application as they are based only on very limited and dated open source information. Assumptions made within the analysis are not reflective of the position of NAMP®. Nothing contained in this article should be considered legal advice.
Mortgagee Letter 2009-51 communicates HUD’s acceptance of FNMA Form 1004D effective for cases assigned on and after January 1st. The form is actually designed to serve two purposes:
Opinion-Editorial (Op-Ed) Disclaimer For NAMP® Library Articles: The views and opinions expressed in the NAMP® Library articles are those of the authors and do not necessarily reflect any official NAMP® policy or position. Examples of analysis performed within this article are only examples. They should not be utilized in real-world application as they are based only on very limited and dated open source information. Assumptions made within the analysis are not reflective of the position of NAMP®. Nothing contained in this article should be considered legal advice.
Written By: Bonnie Wildt
I have said it before and I will say it again and that is, do not believe everything you hear or read for that matter. In this particular instance I am referring to AUS Findings. I have had countless conversations with processors and loan officer who want to know why I am asking for documentation that the AUS findings have clearly stated wasn’t needed or worse, they can’t believe I am turning a loan down that has an Approve/Eligible. So here it is again and pay particular attention to the details because just because you have an Approve/Eligible or Accept doesn’t necessarily mean you have a done deal.