Items Tagged with 'Federal Housing Administration'

ARTICLES

  • Democrats demand answers from HUD on whether DACA recipients are being denied FHA loans

    Sens. Menendez, Booker, Cortez Masto call reported policy "abhorrent"
    Three of the Senate's most prominent Democrats want to know if DACA recipients are being denied FHA loans. Sens. Bob Menendez, Cory Booker, and Catherine Cortez Masto sent a letter to HUD Secretary Ben Carson demanding that Carson clarify whether HUD now has a policy (officially or unofficially) to deny FHA loans to Dreamers.
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  • Reverse mortgage industry reacts to FHA’s hint at future policy changes

    Last week’s actuarial report suggests more change is on the horizon
    Last week, FHA’s 2018 Report to Congress revealed the HECM portfolio’s continued drain on the MMI Fund. While the agency said it was optimistic past policy changes would improve the program, it also suggested more change is coming for HECMs. While this wasn’t exactly welcome news for an industry that can’t seem to catch its breath, reverse execs offered a measured response to FHA’s report.
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  • FHA: No PLF changes for reverse mortgages

    Report reveals HECM’s drain, but FHA says it’s moving in the right direction
    The Federal Housing Administration released its 2018 Report to Congress on Thursday, revealing that the HECM program continues to be a drain on its flagship Mutual Mortgage Insurance Fund to the tune of $13.63 billion in the last fiscal year. But FHA Commissioner Brian Montgomery said the program is benefiting from policy changes made last year, and that the agency remains "optimistic that the quality of the book will continue to improve."
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  • FHA will not cut mortgage insurance premiums

    Actuarial report reveals insurance fund is in good health, but Montgomery says premiums will stand
    The Federal Housing Administration released details on the health of its flagship Mutual Mortgage Insurance Fund on Thursday, revealing a positive economic net worth of $34.86 billion and an acceptable ratio of capital reserves at 2.76%. The numbers are markedly better than last year, but FHA Commissioner Brian Montgomery said that doesn’t mean the agency will be reducing mortgage insurance premiums any time soon.
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  • FHA Commissioner Brian Montgomery: More change ahead for reverse mortgages

    “The HECM program has profound issues”
    Federal Housing Administration Commissioner Brian Montgomery said Tuesday at the National Reverse Mortgage Lenders Association’s annual meeting in San Diego that the agency is working to address the volatility within the reverse mortgage program, hinting that the industry can expect more change ahead, as “efforts in past years to address these problems have generally only delivered short-term fixes.”
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  • FHA takes steps to relieve balance sheet stress for reverse mortgage issuers

    Relaxes documentation guidelines to streamline assignments to HUD
    The Federal Housing Administration issued new guidelines Monday to ease documentation requirements for reverse mortgage issuers. With revised rules in place, the FHA aims to address the rigorous reporting requirements that were gumming up the works, adding serious stress to the balance sheets for reverse mortgage issuers.
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  • FHA publishes FAQ on second appraisal mandate for reverse mortgage loans

    Clarifies specifics for HECM lenders
    It’s only been in play for a few weeks, but the HECM industry continues to speculate just how impactful FHA’s new second appraisal mandate has been. In the meantime, the agency sought to clear up any confusion among lenders, recently publishing a list of FAQs on the new guideline. The biggest takeaway? Its process is proprietary, so don’t expect any clues about its methods.
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  • Lennar subsidiary Eagle Home Mortgage fined $13.2 million for FHA lending violations

    The False Claims Act ain’t dead yet
    It appears the False Claims Act ain’t dead yet. The Department of Justice announced Friday that it reached a $13.2 million settlement with Universal American Mortgage Company, the mortgage subsidiary of Lennar that does business as Eagle Home Mortgage, to resolve allegations that the lender violated the False Claims Act by falsely certifying that it complied with FHA lending standards.
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