The idea of introducing 50-year mortgages as a potential tool to address housing affordability has hit a pause, as the U.S. Department of Housing and Urban Development signals that more research is needed before pursuing such a significant change to federal housing policy. HUD Secretary Marcia Fudge recently indicated that while extended-term mortgages have been discussed as a way to lower monthly payments, the agency is not prepared to move forward without a deeper understanding of the long-term implications for borrowers and the housing market.
As the Federal Reserve signals that interest rate cuts are likely ahead, many prospective homebuyers are wondering what those changes could mean for mortgage rates and housing affordability in 2026. After years of elevated borrowing costs that reshaped the housing market, economists and housing experts say rate cuts may offer some relief — but not the dramatic reset many buyers are hoping for.
After several years of rapid appreciation that strained household budgets and sidelined many potential buyers, the U.S. housing market is expected to enter a period of slower home price growth that could gradually improve affordability by 2026. Economists and housing analysts say cooling price trends, combined with stabilizing interest rates and modest income growth, may help restore balance to a market that has remained stubbornly out of reach for many would-be homeowners.
The U.S. Department of Housing and Urban Development has released its annual update to Federal Housing Administration loan limits for 2026, increasing both forward mortgage ceiling amounts and the maximum claim amount for Home Equity Conversion Mortgages. The adjustment reflects continued home price growth across much of the country and is intended to preserve access to FHA-insured financing for borrowers in a wide range of housing markets while keeping federal programs aligned with current market realities.
In a much-anticipated move late this week, the Federal Reserve lowered its benchmark interest rate by a quarter of a percentage point for the third time this year, a decision that financial markets, loan officers and households have been watching closely. The Federal Open Market Committee’s action, which reduced the federal funds rate to a range of roughly 3.5 %–3.75 %, was aimed at supporting a slowing economy and easing borrowing costs.
Over four weeks I gave everyone the FHA changes effective September 14, 2015 unless HUD delays the implementation of the changes again. These changes were originally set to take place on June 15, 2015 but HUD issued a delay to September 14, 2015. HUD has taken away the discretionary methodology in calculating a borrower’s income for a wage earner and/or hourly wage earner. Under the new guidelines an wage earner that is earning a specific income consistently that is the borrower’s income. The underwriter must use the actual income. Borrowers being paid an hourly wage underwriters can use the income shown as long as it is being is being paid consistently. If not consistent then the income must be averaged over a twenty four month (24) month period.
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 an Underwriter, you will need to know how to review a Tri Merge Credit Report. A Tri Merge Credit Report is a merge report that contains the three major credit bureaus detailed information bearing on credit-worthiness, including credit history and credit score. The borrower’s credit score and credit history determine he/she eligibility, interest rate and LTV on a mortgage loan.
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.
On August 5, 2015, The United States Department of Housing Development (HUD) announced a proposed rule change to amend its existing regulations regarding the equal participation of faith – based (religious) organizations in HUD programs.
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 new Loan Estimate is designed to help consumers make informed decisions when shopping for a mortgage and understanding the key features, costs, and risks of the mortgage loan for which they are applying for.
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.
If there is no delay, the new Single Family Handbook (SFH) – 4000.1 is fully in effect with cases taken on or after September 14, 2015. I have already written three articles full of changes that are effective September 14, 2015.
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.
Over the previous three weeks I have written about the numerous changes coming to FHA with the new Single Family Handbook (SFH) 4000.1. Some changes are minimal and some are not. Some changes enhance the program.
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 New Closing Disclosure form must be in loan file as of August 2015. The Closing Disclosure is a 5 pages long form that replace the final Truth in Lending disclosure and HUD-1 Settlement Statement and must be provided to borrowers three days before consummation or closing of their transaction.The Closing disclosure, is intended, to help consumers make informed decisions when shopping for a mortgage and avoid costly surprises at the closing table.Versions of the Closing Disclosure will vary depending upon the type of transaction. Home equity lines of credit and reverse mortgages will continue to use the HUD-1 form.
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.
My previous two articles were about the changes taking place at the FHA with the replacement of HUD – 4155.1 and HUD – 4155.2 and numerous Mortgagee Letters with the Single Family Handbook (SFH) 4000.1 below are additional changes that everyone needs to be aware of.
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.
Last week’s article was a glimpse of over 100 changes to the underwriting guidelines. In 2002 HUD – 4155.1 was written and now it is being replaced by the Single Family Handbook (SFH) 4000.1. The SFH -4000.1 contains a section pertaining to e – signatures. Tis technology did not exist when HUD – 4155.1 came out. HUD allows e – signatures. This section gives all the rules behind e – signatures such as identification, verifying the individual(s) involved and how to work with e – signatures.
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.
No, it’s not reference to a place on a different continent or even a historic event, but the ongoing skirmishes and sometimes all out war that seems to occur on a daily basis in many a mortgage lenders offices’. I myself am usually a daily combatant and like to think of myself as a commander, but I am sure many office managers as well underwriting managers feel the same way. Like myself I am sure they to spend a large part of their researching battle plans and coming up with ways to keep their flanks covered.
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.