Items Tagged with 'Federal Housing Administration'

ARTICLES

  • 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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  • Quicken Loans Vice Chairman Bill Emerson: Government used "extortionist tactics" to pursue "bogus" claims

    "This case was dismissed and there was zero finding of fault"
    On Friday, Quicken Loans and the DOJ reached a resolution over allegations that the nonbank’s FHA lending practices violated the False Claims Act. Quicken Loans Vice Chairman Bill Emerson told HousingWire in an exclusive interview that the nonbank did not admit to any guilt and that the government realized its "bogus" claims were baseless.
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  • Quicken Loans agrees to pay $32.5 million to resolve FHA loan allegations with DOJ

    Mediation finally brings 4-year battle over False Claims Act violations to an end
    Quicken Loans is now finally able to move past its beef with the DOJ over the nonbank’s FHA lending practices, as a mediator for the two parties announced Friday that they have finally reached a resolution. Without any admission of guilt or determination of wrongdoing on either side, Quicken agreed to pay the government $32.5 million to settle allegations that it violated the False Claims Act for submitting hundreds of "improperly underwritten" loans for FHA mortgage insurance. Click the headline for more.
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  • HUD declares FHA is no longer backing DACA mortgages

    "DACA recipients remain ineligible for FHA loans"
    After months and months of uncertainty about whether the FHA is backing mortgages for Deferred Action for Childhood Arrivals recipients or not, HUD has finally given an official answer. And that answer is no.
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  • FHA is increasing lending to riskier borrowers

    Share of borrowers with DTIs above 50% rises to highest level since 2000
    Citing rising risks among the mortgages it's backing, the FHA announced earlier this year that it was changing some of its lending rules to increase the prevalence of manual underwriting to try to decrease the risk in its portfolio. And it seems like those changes may be more than warranted, because new data released Friday shows that the FHA appears to be loosening its lending standards and backing loans for increasingly riskier borrowers.
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  • Urban Institute to FHA: Fix your reverse mortgage servicing problems

    Stop transferring servicing rights, it’s costing millions
    Policymakers have long struggled with how to fix the FHA's reverse mortgage program to prevent it from draining the agency's mortgage insurance fund. But researchers are the Urban Institute have an idea: Fix the program's servicing problems, which they call "one of the biggest drivers of losses in the HECM program." Here's what they suggest.
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