Items Tagged with 'FHA'

ARTICLES

  • From HW Magazine

    Life of loan premium policy hurts borrowers and FHA

    Life of Loan has outlived its usefulness
    For 85 years, American families of modest means looked to the Federal Housing Administration for affordable mortgage loans to attain the dream of homeownership. But these homeowners, many of whom are minority and first-time homebuyers, now face a rude awakening. They will be saddled with years of excessive premium payments amounting to tens of thousands of dollars.
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  • 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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  • Ginnie Mae takes steps to squash VA loan churning

    Will move forward with proposal to exclude high LTV loans from securities
    The churning of loans backed by the Department of Veterans Affairs has long been a thorn in Ginnie Mae’s side, as the agency has worked for three years to curb abuses by VA lenders. Now, Ginnie is taking yet another step to squash abuses, announcing Thursday that it is moving forward with a proposal to remove VA-backed cash-out refinances with high loan-to-value ratios from its flagship securities.
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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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  • From HW Magazine

    FHA enforcement: What decreased reliance on the False Claims Act means for FHA lenders and servicers

    HUD officials looking to chart a new course
    Top officials at the U.S. Department of Housing and Urban Development are looking to chart a new course to win back banks that have fled the Federal Housing Administration lending program following a series of multimillion-dollar False Claims Act settlements.
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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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  • FHA's reverse mortgage changes have slashed the default rate

    Policy of assessing borrower's credit risk appears to be doing the trick
    It’s been four years since the Federal Housing Administration instituted a policy requiring all prospective reverse mortgage borrowers undergo a financial assessment to determine their suitability for the loan, and so far, it appears to be working. According to the latest analysis from New View Advisors, Financial Assessment has slashed tax and insurance default by more than three-quarters and serious defaults by more than two-thirds.
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