Articles Tagged with ''Federal Housing Administration''

HUD announces new rules for down payment assistance on FHA mortgages

Claims "certain governmental agencies" may be operating outside existing rules
The Department of Housing and Urban Development announced this week that it is issuing new rules for down payment assistance on mortgages insured by the Federal Housing Administration. Click the headline for a full breakdown of which rules are changing and why.
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Quicken Loans, DOJ sent to mediation in ongoing battle over FHA loan allegations

Trial is scheduled for Aug. 5, 2019
Nearly four years after the legal battle between Quicken Loans and the Department of Justice began over claims Quicken violated FHA lending rules, the case may finally be decided in court later this year. But not before the parties give settling the matter at least one more try, after being ordered to do so by a federal judge.
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Bloomberg: Mortgage servicing needs fixing, and here's what should be done

It's the plumbing of the mortgage industry, and it needs a serious overhaul
Mortgage servicers are "unsung professionals" who play a crucial role in the U.S. economy, Bloomberg says, but they're not doing their jobs well. But to be fair, it's not all their fault. What's the problem? A recent article in Bloomberg breaks it down, claiming that the mortgage servicing sector needs a serious overhaul. Here's a review of the problems, and some ideas as to what can be done about it.
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Trump asks HUD to address financial viability of reverse mortgage program

Housing finance reform to include assessment of HECMs
President Donald Trump this week put into motion federal action on the "overdue reform of the housing finance system." Among the president's to-do list for the HUD secretary: address the financial viability of the reverse mortgage program, and report back to him promptly with a detailed plan for reform.
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Fannie Mae declares support for DACA mortgage borrowers

Reiterates guidelines on mortgages for non-citizens
While it appears that the Federal Housing Administration may not be backing mortgages for Deferred Action for Childhood Arrivals recipients, Fannie Mae declared recently that it supports (and will continue to support) mortgages for DACA recipients, also called Dreamers.
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FHA says as many as 50,000 mortgages will be affected by new lending rules

4-5% of FHA borrowers may no longer qualify
Two weeks ago, the FHA took steps to limit risk to its single-family portfolio, announcing that it will flag some loans for manual underwriting. FHA's Chief Risk Officer Keith Becker told the WSJ just how many loans the agency thinks will be affected, adding that the FHA "felt that it was appropriate to take some steps to mitigate the risks we're seeing."
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Dreamers denied: Evidence mounts FHA is not backing DACA mortgages

Lenders back down as government actions disrupt home loans
Despite HUD stating recently that its policies have not changed in regards to the FHA backing mortgages for Deferred Action for Childhood Arrivals recipients, it appears that the opposite is actually the case. Or at least that’s how the mortgage lending industry is reacting. A new HousingWire investigation has uncovered lender bulletins or guidelines from a dozen different lenders each stating that Dreamers are not eligible for FHA financing.
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Latest FHA shift to mitigate risks may shut out some homebuyers

Recent changes to TOTAL Mortgage Scorecard have some lenders worrying they won't close
Last week, the Federal Housing Administration took steps to mitigate risks to its single-family portfolio, announcing updates to its TOTAL Mortgage Scorecard that may flag some loans for manual underwriting. Chatter among members of the lending community suggests a number of originators are unhappy about the changes, fearing that the end result may be that some of their borrowers will be shut out of FHA financing.
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