Origination/Lending
FHFA Looks to Expand Access to FHA Loans
By KELLY CURRAN
October 9, 2008 10:27 AM CST
New, interim changes to the the Federal Housing Finance Agency’s Affordable Housing Program will allow the use of AHP subsidies in conjunction with the Federal Housing Administration’s Hope for Homeowners Program; the FHFA announced the proposed rule Wednesday afternoon.
Current AHP regulation requires each of the 12 Federal Home Loan Banks to contribute 10 percent of their previous year’s net earnings to assist member institutions engaged in lending for owner-occupied and rental housing to low- and moderate-income households.
The rule permits the set-aside funds to be used for two new purposes. First, FHLBanks may use AHP funds to reduce the outstanding principal balance of the refinanced loan below the established maximum 90 percent loan-to-value ratio established in the Hope for Homeowners underwriting criteria; fund may also be used to pay FHA-approved loan closing costs, FHFA said in a press statement.
“The use of AHP set-aside funds with the HOPE for Homeowners Program will enhance the
effectiveness of each program, ensure that the full range of federal assistance to homeowners is
available quickly, and provide the flexibility that the FHL Banks and their members need to make the
AHP refinancing program successful,” said Edward DeMarco, FHFA deputy director for housing mission and goals.
The proposed rule is open for comment for the next 60 days. Some HW sources said the program is further proof of how government officials intend to use their new-found and wide-reaching powers in mortgage lending markets.
Read the full FHFA statement >>
Editor’s note: To contact the reporter on this story, email kelly.curran@housingwire.com.
Print This Article
recent stories by department
Origination/Lending
Secondary Market/Investors
Get your HW Fix
Join nearly 10,000 bold subscribers who already get our daily email delivered to their inbox -- it's free, and a great way to ensure you don't miss something.
Events
2009 Jul 09 -- 2009 Jul 10
USFN Legal Issues in Mortgage Servicing Seminar
Geared towards in-house counsel, designed to discuss current legal issues in the mortgage servicing industry and real estate finance. Closed event in Chicago, Ill.; for more information, visit www.usfn.org.
2009 Oct 04 -- 2009 Oct 05
IMN's 15th Annual ABS East
Hosted at the Foutainebleau Resort Miami Beach in Miami, FL, the theme of this year's event is "Navigating a Path to Recovery" and alludes to decisive actions by the government and industry leaders to set a course that will hopefully lead to a revived and robust US securitization market. For more information, visit www.img.org.
2009 Oct 20 -- 2009 Oct 21
RMBS: Assessing Value and Risk
This two-day course in Washington, DC will equip market participants with the knowledge and skills to evaluate prime, Alt-A and subprime RMBS portfolios in order to assess their value and understand inherent risks. For more information, visit www.fitchratings.com.
