Items Tagged with 'Federal Housing Administration'


  • HUD officially abandons new rules for down payment assistance on FHA mortgages

    Changes led to lawsuit from Native American tribe, federal court delay
    The Department of Housing and Urban Development announced late last week that is officially bailing on a contentious set of changes to its rules for down payment assistance on mortgages insured by the Federal Housing Administration after the initial proposal led to the agency being sued by a Native American group.
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  • FHA to make financing easier for condo owners

    Announces long-awaited changes to eligibility requirements that include individual unit approval
    The Federal Housing Administration has finally issued a long-awaited update to its condominium rules, announcing Wednesday that it will now allow individual unit approval and is taking other steps to loosen requirements that make these properties eligible for FHA financing. The agency said it expects the updated guidelines to qualify up to 60,000 more condo units a year for financing.
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  • FHA moves to limit cash-out refinances

    Lowers LTV requirements from 85% to 80%
    In the last several years, an increasing number of borrowers with loans backed by the Federal Housing Administration have been refinancing their mortgages to extract cash – a trend some have called concerning and risky. Now, the Department of Housing and Urban Development is taking steps to curb the prevalence of cash-out refinances, announcing Thursday that it’s lowering loan-to-value requirements.
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  • FHA temporarily pulls plug on Loan Review System due to "errors and data loss"

    Electronic platform for QC on FHA loans taken offline
    The Federal Housing Administration’s system for quality control on the loans it backs is currently offline after weeks of issues led to the inadvertent deletion of an unknown amount of data and documents. The FHA announced Wednesday that it temporarily pulled the plug on its Loan Review System on Monday, as it works to address “various server errors” that have taken place over the last several weeks.
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  • Utah judge to halt FHA's down payment assistance rule changes

    Agrees to preliminary injunction as battle with Native American group rages on
    A federal judge in Utah said at a hearing last week that he would be granting a motion to delay the implementation of the Federal Housing Administration’s down payment assistance rule changes as a debate over the new guidance rages on in federal court. According to the lawsuit filed against HUD on behalf of the Cedar Band of Paiutes, HUD’s new guidance "unlawfully targets American Indian tribes and bands by prohibiting them from participating in home-purchasing assistance programs."
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  • Trade groups cast doubt over FHA's attempt to remove lending roadblocks

    Letters to HUD say proposal "will not give lenders the assurance needed"
    In May, the FHA said it was working to clarify the rules of its mortgage program in an effort to ease compliance concerns, pledging to replace the “jumbled legalese” in its certification and compliance documents with “plain English.” But a number of trade groups expressed their joint belief that the proposed changes do not go far enough to ease compliance concerns and “will not give lenders the assurance needed to expand their program participation.” Here's what they recommend be done.
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  • New bill slashes FHA mortgage insurance for first-time homebuyers

    Borrowers who undergo counseling can get a discount on their upfront mortgage insurance
    The House passed a bill Tuesday that slashes the cost of upfront mortgage insurance for first-time homebuyers using mortgages backed by the FHA. The bill stipulates that first-time homebuyers who complete a housing counseling program to learn about sustaining homeownership can get a 25-basis-point discount on their upfront mortgage insurance for an FHA loan.
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  • Prominent Senate Democrats want reversal of HUD policy on FHA mortgages for Dreamers

    Democrats move to guarantee government will back DACA mortgages
    A number of prominent Senate Democrats, including several who are running for president, want HUD to reverse the FHA's new policy of refusing to back mortgages for Deferred Action for Childhood Arrivals recipients. And the Senators also want to make sure that other government-backed loans are available to DACA recipients (also called Dreamers).
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  • Urban Institute to FHA: Want more lenders? Clarify False Claims Act enforcement

    Researchers propose ideas for greater clarity regarding False Claims violations
    Many lenders have pulled away from FHA lending in recent years – something the agency has taken steps to address by clarifying underwriting rules. But according to a recent blog post from the Urban Institute, the FHA has not gone far enough to quell lender fears about getting back into the business of FHA lending. The problem? Not enough clarity regarding what qualifies as a violation of the False Claims Act and what the penalties might be.
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