Top markets for affordable renovated housing inventory

Despite the rapidly deteriorating affordability, there is some hope for homebuyers in the form of renovated homes: properties that have been rehabbed into move-in ready condition after being purchased at auction.

HousingWire Magazine: December 2021/ January 2022

AS WE ENTER A NEW YEAR, let’s look at some of the events that we can look forward to in 2022. But what about what’s next for the housing industry?

Back to the Future of Mortgage Lending

This webinar will be a discussion on understanding what’s to come in the future of mortgage lending by analyzing past trends in the industry, evolving consumer behaviors and demographics of the industry’s production capacity.

Logan Mohtashami on Omicron and pending home sales

In this episode of HousingWire Daily, Logan Mohtashami discusses how the new COVID variant, Omicron, will impact inflation and whether or not it will send mortgage rates lower.

Mortgage

FHA makes it easier for struggling borrowers to keep their homes

Announces "streamlined" loss mitigation process for mortgage servicers

Borrowers with a high loan-to-value ratio mortgage received some welcome news on Thursday morning when the Federal Housing Finance Agency announced that it plans to extend the Home Affordable Refinance Program into 2017 and unveiled a new refinance program that will take HARP’s place once it expires.

These programs apply to borrowers whose loans are owned by Fannie Mae and Freddie Mac, but what about struggling borrowers whose loans are insured by the Federal Housing Administration?

Well, those borrowers are now about to get some relief of their own, as the FHA announced Thursday that it is making it easier for struggling borrowers to keep their homes.

The FHA said Thursday that it is announcing new procedures to “strengthen the process mortgage servicers use to help struggling families avoid foreclosure and remain in their homes.”

To that end, the FHA is “streamlining” the loss mitigation protocols that mortgage servicers must use considering and utilizing “home retention options,” which are foreclosure alternatives that allow delinquent borrowers to retain their home.

According to the FHA, these changes specifically apply to the process mortgage servicers use when evaluating borrowers for the FHA-Home Affordable Modification Program.

The FHA said that the changes, which servicers must begin using by Dec. 1, 2016, will reduce the number of steps that a servicer and borrower must take to resolve a delinquency and enter into a loss mitigation home retention product.

Additionally, the FHA announced that it is removing “certain obstacles” that will give servicers greater flexibility for evaluating an unemployed borrower’s financial condition and special forbearance agreements.

Specifically, the FHA said that it will now:

  • Require servicers to convert successful 3-month trial modifications into permanent modifications within 60 days instead of the average four-to-six months
  • Allow borrowers with three missed mortgage payments to qualify for a partial claim to bring their arrearages current versus the previous four-month minimum
  • End the traditional stand-alone loan modification option so borrowers can access the FHA-HAMP option, with its greater payment relief, sooner
  • Eliminate the minimum 12-month delinquency term to qualify for FHA’s special forbearance option, which will allow servicers extend this option to unemployed households sooner in their delinquency

For more information on the FHA’s new policy changes, click here.

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