Items Tagged with 'FHA'

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Urban Institute: HUD watchdog is wrong on borrower-financed down payment programs

Says HUD-OIG misunderstands, overstates issue
A recent report from HUD's watchdog said that HUD does not have sufficient oversight of borrower-financed down payment assistance programs for FHA-insured loans, which puts borrowers and the FHA’s flagship insurance fund at “unnecessary risk.” Analysts from the Urban Institute reviewed the report as well, and came to a different conclusion: HUD’s watchdog is wrong to call out the down payment assistance programs.
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Watchdog: HUD lacks sufficient oversight for borrower-financed down payment programs

Report finds HUD “failed to adequately oversee” more than $16 billion in FHA loans
The Department of Housing and Urban Development’s lack of oversight into borrower-financed down payment assistance programs for Federal Housing Administration-insured loans puts borrowers and the FHA’s flagship insurance fund at “unnecessary risk,” HUD’s watchdog said in a new report.
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Franklin First Financial fined $1.25 million for FHA loan violations

Allegedly concealed default rates by paying borrowers’ mortgages for them
Franklin First Financial is set to join a list of mortgage lenders that settled with the Department of Justice for violating Federal Housing Administration lending standards, but unlike Wells Fargo, Walter Investment, and a host of others, Franklin First isn’t settling allegations. Rather, the government accused Franklin First of paying borrowers mortgages to keep them from defaulting, thereby concealing the lender’s default rates.
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Realtors ask Trump to reinstate FHA mortgage insurance premium cut

Estimates reduced MI premiums could bring in 40,000 new homebuyers
The National Association of Realtors believes that the Trump administration’s recent decision to suspend a reduction in the Federal Housing Administration’s annual mortgage premiums will keep as many as 40,000 potential homebuyers from becoming actual homebuyers in 2017, and wants the premium cut reinstated “as soon as possible.”
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HOT or NOT: What is trending in housing right now?

Airbnb gets a reprieve
What has been trending in the housing world over the last month? The CFPB is red hot, as usual, but consumer housing sentiment and mortgage insurance premiums did an abrupt about-face in the middle of the month. Also, the latest on Airbnb restrictions.
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Nonbanks dominate FHA-backed mortgages

Is this good or bad for the industry?
Nonbank’s share of Federal Housing Administration-backed mortgages crossed $1 trillion for the first time in November. The news, while positive for nonbanks, is causing some in the industry to question the consequences nonbanks face if the industry undergoes any future stress.
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Industry reacts: Is Trump's suspension of FHA mortgage insurance premium cut good or bad?

Suspended indefinitely
The Department of Housing and Urban Development’s decision to suspend the reduction of Federal Housing Administration mortgage insurance premiums didn’t come as a shocker. But while the industry knew the uncertainty surrounding the situation, they’re left divided on the issue. How much disruption will this delay cause?
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Sources: Trump plans repeal of FHA mortgage insurance premium cut

Will it be a delay or an indefinite delay?
With President-elect Trump’s inauguration mere hours away, it appears that the Trump administration will do more than just “examine” the FHA premium cut once Trump is sworn on. According to multiple sources, the FHA premium cut, which is currently scheduled to go into effect on January 27, will be delayed, if not done away with entirely, by the incoming Trump administration.
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[Charts] A look at FHA mortgage insurance premiums through the decades

Where does the MIP sit today?
Up until this year, the Federal Housing Administration has not reduced annual mortgage insurance premiums since January 2015. But even the 2015 reduction came in a series of increases and reductions that have taken effect since 2010. Before the increase in 2010, there was a long standstill in mortgage insurance premiums, which the Mortgage Bankers Association puts into context in its latest chart of the week.
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