Closing Complex Loans Faster With a Digitized Client Workflow

Join us for a discussion on changes in market demographics, suppliers and how focusing on customer experience and a few simple steps during the mortgage loan process can close deals 3x faster.

engage.marketing event: All eyes on purchase

To help power your business forward, we’re bringing together the smartest minds in purchase mortgage marketing to share the insights, tactics and strategies that set leaders apart.

Home appraisal’s ugly history and uncertain future

This is Part I of a deep dive into the home appraisal industry. Today we explore the origins of the appraisal industry and its current lack of diversity.

The digital journey starts at acquisition

Download this white paper to learn how to build a tech-enabled acquisition strategy that will directly contribute to a lender’s ability to maximize profitability and remain competitive.

Politics & MoneyMortgage

MBA supports lower LTVs for FHA-insured jumbos

A Federal Housing Administration proposal to lower the loan-to-value ratio requirements for government-backed loans valued above $625,500 has gained the support of the Mortgage Bankers Association.

The plan would essentially lower the required loan-to-value ratio from 96.5% to 95% for any FHA-insured loan valued above that threshold.

The MBA’s public policy team sent a comment letter to HUD praising the plan as a way to refocus FHA on its core mission of serving low- and moderate-income borrowers, while making the private market competitive again by shrinking the FHA’s footprint.

As a consequence, the proposal would raise the minimum downpayment requirement from 3.5% to 5% on FHA-insured mortgages valued above the $625,500 benchmark, the MBA said.

Stephen O’Connor, senior vice president of public policy and industry relations with MBA, sent a letter to HUD supporting the plan, despite the higher downpayments that could result.

“This current proposal will have a minimal impact on the overall United States housing market,” wrote O’Connor in a letter. “From January 1, 2012 through December 31, 2012, applications for government-insured loans over $625,500 accounted for just 0.75 percent of total applications nationwide.”

Still, some markets do lean more heavily on FHA-insured loans for homes valued above $625,500.

These markets include Washington D.C., where 11.17% of 2012 applications for FHA-insured mortgages were for loans above the $625,500-threshold, and Hawaii where 10.08% of government loan applications fit into this category.

kpanchuk@housingwire.com

Most Popular Articles

Fannie Mae, and the housing market’s inflation problem

Another month of steadily increasing home prices and insatiable demand led Fannie Mae’s Economic and Strategic Research Group to alter many of its 2021 predictions – in particular, its outlook on the symbiotic relationship between the housing market and inflation measures.

Jun 16, 2021 By

Latest Articles

Doug Duncan and the housing market’s supply conundrum

The housing market has suffered due to high material prices, spend-anything buyers & a lack of supply. A return to normalcy will require big changes. HW+ Premium Content

Jun 18, 2021 By
3d rendering of a row of luxury townhouses along a street

Log In

Forgot Password?

Don't have an account? Please