National Association of Processors

On Friday, the Federal Housing Administration (FHA) restated intentions originally announced in 2010 to enact more stringent performance requirements for Department of Housing and Urban Development-approved lenders by increasing lender indemnification, with an eye toward limiting risk and strengthening finances for its Mutual...Read Full Story>>

FHA Mortgage Rates Still at All-Time Lows

Last week saw mortgage rates set new all-time lows once again, according to Freddie Mac’s Primary Mortgage Market Survey.  This is most likely a result of negative news regarding European debt, because recent U.S. economic data has been fairly strong (although last weeks’ initial unemployment figures and retail sales report...Read Full Story>>

FHA Mortgage Approval With Non-Occupying Co-Borrower

FHA mortgages go a step further in order to help consumers purchase a home of their own. Having a qualified co-borrower can make a huge difference for some borrowers when it comes to receiving FHA mortgage approval by adding strength to the most important segments of the loan file. This option is often used when a borrower cannot...Read Full Story>>

THE FHA BLOG CAFE

Credit Qualifying Streamline Refinance Transactions

Written By: Bonnie Wilt-Hild, Senior FHA DE Underwriter 

I know what you’re thinking already, “Really Bonnie, we know all about them”, but I say untrue, this based on a conversation I had yesterday with an underwriter friend at Philadelphia HOC. It is always nice to talk to her, catching up with friends is always a good thing and as you can image, she will sometimes share with me some of the most common disastrous mistakes lenders make where...Read Full Blog

With several mortgage loan types available, borrowers are often confused as to what type is the best one for them to choose. It is important that the lender be knowledgeable enough to point out the differences of each type in order to show which is best suited for the individual borrower’s circumstances. In many instances, FHA mortgages may be the...Read Full Story>>

FHA Mandates Reporting Former REO Status for HECM Purchase Transactions

Starting this week, Federal Housing Administration lenders will be required to note and record when a mortgage transaction has been previously sold as Real Estate Owned property, including Home Equity Conversion Mortgage for Purchase transactions that involve former REOs. “Effective Saturday January 14, 2012 lenders will be required to...Read Full Story>>

Tax Cut Extension Mandates FHA Premium Increase

Annual Federal Housing Administration reverse mortgage premiums could stand to rise following the passage by Congress of the payroll tax cut extension that took place in December. Just in time for Congress’s holiday recess, the tax cut extension passed, providing for anextension of the Social Security tax cut of 4.2% (initially set...Read Full Story>>

THE FHA BLOG CAFE

The G-fee Hit

Written By: Bonnie Wilt-Hild, Senior FHA DE Underwriter 

As if we didn’t already pay enough in the way of taxes, beginning January 16, 2012 we will have another to contend with, that being the G-fee hit ordered by Congress and the FHFA with respect to pricing adjustments. For those of you who are not aware of what this means for you as lenders, begin checking out the rate sheets from your investors next week and you will quickly realize that this equates to an...Read Full Blog >>

The Federal Housing Administration is extending for another year its temporary waiver of anti-flipping regulations, initially introduced in 2010 to facilitate the turnaround of foreclosed properties in hard hit communities. In most cases, FHA ordinarily prohibits insuring a mortgage on a home owned by the seller for less than 90 days.  In 2010...Read Full Story>>

Property Conditions for FHA Mortgage Approval

Property conditions for FHA mortgage approval are an important part of the mortgage transaction. FHA property guidelines are put in place as a form of protection to all parties who have an interest in the transaction. FHA ‘s minimum property standards are designed to include the safety, security and soundness of the home...Read Full Story>>

Mixed views on FHA financial strength

Some housing commentators warn that the Federal Housing Administration is depleting its cash reserves due to a spike in delinquencies on older FHA-insured loans, and the agency may soon be calling on taxpayers for help, CNNMoney reports. But other commentators say home price trends are important to FHA’s reserve fund strength, and the...Read Full Story>>

THE FHA BLOG CAFE

In response to high foreclosure rates and a continually sluggish housing market, the Federal Housing Administration (FHA) announced today they will extend the temporary waiver of FHA's anti-flipping regulations through 2012. The waiver, which was first announced in 2010 and set to expire in December 2011, will permit buyers...Read Full Story>>

FHA Extends waiver of Anti-Flipping Regulations Through 2012

In an effort to continue stabilizing home values and improve conditions in communities experiencing high foreclosure activity, Acting Federal Housing Administration Commissioner Carol J. Galante today extended a temporary waiver of FHA’s anti-flipping regulations through 2012. “This extension is intended to accelerate the resale of...Read Full Story>>

FHA Revises Lender Approval Requirements

Mortgagee Letter 2011-34 was issued in late September, but didn’t get a lot of attention. In this month’s article, I’ll point out the highlights of the update. The update announced changes to the Federal Housing Administration (FHA) requirements for obtaining, maintaining and utilizing a lender’s FHA approval. The lender must list all of its...Read Full Story>>

THE FHA BLOG CAFE

Professionalism

Written By: Bonnie Wilt-Hild, Senior FHA DE Underwriter 

It wasn’t long ago, or at least it doesn’t seem so, that people employed in the mortgage industry were considered mortgage bankers or mortgage professionals who possessed a certain skill set where banking and finance were concerned that labeled these individuals as professionals. During these times, mortgage bankers or professionals wore suits and ties to work, for the ladies it was skirt...Read Full Blog

FHA mortgages allow certain types of property that they will insure under the FHA single family housing program. These different types of dwellings are significantly different and must meet FHA property requirements in order to receive mortgage approval. Under the guidelines for FHA mortgages, a single family home is a stand alone unit. It can also be attached...Read Full Story>>

FHA Money Trouble Causes Concern For Homebuyers

The Federal Housing Administration (FHA) is the oldest government backed lender in the U.S. It began as part of the New Deal in 1934. Its earliest mission was to provide loans to those denied by traditional financial institutions, but were still deemed "credit worthy." The goal of the FHA was to create better neighborhoods, living conditions and...Read Full Story>>

FHA loan limit increase benefits sellers and buyers

Just in time for the holidays, the FHA (Federal Housing Administration) loan limit increase back to $729,750 from the $625,500 limit that existed prior to the mortgage crisis and for about half of 2011. The limit means a lot in our area, where the median housing price is near the top in the nation. Since a greater percentage of our homes are sold...Read Full Story>>

THE FHA BLOG CAFE

BILOXI -- Residents learned more this week about an FHA loan program that will let them borrow up to $271,050 to buy, refinance or improve their homes. The Federal Housing Administration 203(k) loan program is designed to rehabilitate the nation’s older homes, Bo Smith, a mortgage financing expert from Jackson, told about 35 people who attended...Read Full Story>>

House Committee Examines FHA's Financial Viability

U.S. Department of Housing & Urban Development (HUD) Secretary Shaun Donovan took part in a House Financial Services Committee hearing titled "Perspectives on the Health of the FHA Single-Family Insurance Fund," where Donovan was questioned about the well-being and current financial state of the Federal Housing Administration...Read Full Story>>

Credit guidelines for mortgages get tougher: Higher FHA limit extended 2 more years

The Federal Housing Finance Agency, with help from Congress, recently took steps that affect people buying homes in high-priced real estate markets such as New Jersey. First, Congress approved an extension of the loan limit on Federal Housing Administration loans in high-priced markets at $729,900. The regular limit in most areas is $...Read Full Story>>

THE FHA BLOG CAFE

Shelving Broken Concepts
Written By: Bonnie Wilt-Hild, Senior FHA DE Underwriter 

Once upon a time there lived young women who, during a down turn in employment, embarked upon a career adventure that would ultimately become a life changing event. Having limited job skills, she accepted employment as a loan processor for a small Savings & Loan in Maryland. This experience was quite unique as the only job skills she...Read Full Blog >>

Harping
Written By: Theresa Furzland

Consistent low mortgage rates have helped increase purchase applications for the week ending November 18th. According to the Mortgage Banker’s Association, while refinance applications were down, applications for purchases increased. Purchasing a home at this time continues to be a bargain with low home prices and mortgage rates that...Read Full Story>>

Lawmakers to Restore Higher FHA Loan Limits

U.S. lawmakers moved Thursday to increase the maximum size of loans that can be guaranteed by the Federal Housing Administration, even as a top Obama administration official expressed doubt about the need for the change. A spending bill passed by Congress increases to $729,750 the maximum size of a mortgage that can be backed by...Read Full Story>>

Higher Loan Limits Reinstated for FHA Mortgages

On Friday, November 18th, President Obama signed into law a bill that reinstated higher loan limits for FHA (Federal Housing Administration) mortgages. On October 1st, all loan limits for conforming loans and FHA loans were reduced to $625,500 in high cost areas. The new loan limit for FHA became effective immediately on Friday and will remain in...Read Full Story>>

THE FHA BLOG CAFE

Getting Files Closed
Written By: Bonnie Wilt-Hild, Senior FHA DE Underwriter 

Ok, so I have been in the mortgage industry for 25 years and I have to say, this end of the month has been the worst ever. Well maybe not the worst but it ran a very close second. More frightening is the fact that we didn’t close near the volume that we have closed in past months. My assessment as to why it all seemed so difficult has everything...Read Full Blog >>

Is it working
Written By: Theresa Furzland

Allied Home Mortgage Corp. can originate and underwrite Federal Housing Authority-insured home loans, a judge said, reversing a U.S. agency’s suspension of those privileges. The U.S. sued Houston-based Allied Home Mortgage and Chief Executive Officer James C. Hodge in Manhattan federal court on Nov. 1, and the Department of Housing and Urban Development suspended the...Read Full Story>>

FHA might need a bailout

If the housing market doesn’t rebound next year, agency may need as much as $43B. There might yet be another casualty in the real estate market: the Federal Housing Administration. With home prices still seeking their bottom, the federal agency that insures more than $1 trillion in mortgages faces a nearly 50 percent chance that it could need a taxpayer bailout next year, according to a government...Read Full Story>>

Allied Branches Allowed to Resume FHA Business

A judge in the U.S. District Court, Southern District of New York (Manhattan) has ordered an injunction to the U.S. Department of Housing & Urban Development (HUD) to allow Allied Home Mortgage Corporation branches to resume originating Federal Housing Administration (FHA)-insured mortgage loans. HUD’s Mortgagee Review Board (MRB) originally announced the suspension of Allied...Read Full

Homeowners who are looking for specific help from the FHA Federal Home Loan Mortgage case and program may find that this particular form of HAMP assistance is beneficial for their situation as, obviously, reduced payments can be greatly helpful when certain forms of financial distress or problems in the lives of homeowners may have arisen as a result of...Read Full Story>>

FHA Mortgage Rates Hover Near All-time Lows

Mortgage rates fell last week as worries of sovereign defaults in Europe roiled the markets.  This week the focus has shifted from Greece to Italy. There are rumors that Italian Prime Minister Silvio Berlusconi’s government may fall apart, forcing him to resign.  In any case, rates are now near 60 year lows. Are you a renter who is looking to take advantage of the current low rate environment? If you’re...Read Full Story>>

Credit Examinations Are Required For FHA Mortgages

Although FHA mortgages have easier credit qualifications, credit examinations are still required for FHA mortgage approval by an FHA underwriter. This is usually the part of the FHA mortgage process that can become frustrating for borrowers since it can often require a lot of communication between them and the lender that may result in further documentation. Considering the benefits...Read Full Story>>

THE FHA BLOG CAFE

Personal Responsibility
Written By: Bonnie Wilt-Hild, Senior FHA DE Underwriter 

I have had it, really. Yesterday I read the tweet from Chef Mario Batali regarding the banking industry which compared bankers to Hitler and Stalin. As one that would consider themselves a banker, credit officer and underwriter, I take extreme offense to the comment particularly when it comes from someone who during the normal course business, charges $300.00 for a truffle tasting menu at his own...Read Full Blog >>

I am one of the 99%, therefore I am the 1%
Written By: Theresa Furzland

Q: I was listening to your radio show recently, and a caller had a mortgage with a big bank and wanted to get his interest rate lowered. He stated he wasn't behind in his payments but wanted more cash flow for the household. You stated that if he had an FHA loan, there was a program he could use...Read Full Story>>

FHA Suspends Allied Mortgage Corp., Cracks Down on Branch Violations

The Department of Housing and Urban Development’s Mortgage Review Board has suspended Houston-based Allied Home Mortgage Corporation and its company CEO for violating Federal Housing Administration requirements and concealing those violations. Ginnie Mae has also suspended the company from issuing mortgage-backed securities. “We will not tolerate mortgage lenders who play fast and...Read Full Story>>

FHA Loans Near Record Lows – 30 Year Fixed Starting at 3.750%

Mortgage rates plunged yesterday as the financial markets reacted to a couple of pieces of bad news.  The first item was that the Greek Prime Minister is going to ask the country to vote on a potential bailout package.  The package is extremely unpopular in Greece, and is unlikely to be approved via referendum.  The second piece of bad news was the implosion of financial firm MF Global...Read Full Story>>

THE FHA BLOG CAFE

Knowing the Guidelines
Written By: Bonnie Wilt-Hild, Senior FHA DE Underwriter 

Yes, it is important to know the guidelines and I am sure many of you who are underwriters are thinking that you do or you know them at least sufficiently to underwrite a case with the assistance or guidance from your AUS. We I am here to tell you that these days it’s a little trickier than that and I can prove that statement by way of buy backs just last month. Yes my institution had...Read Full Blog >>

Ownership – Occupy
Written By: Theresa Furzland

Is a little-publicized switch in federal mortgage policy causing huge problems for condominium sellers, buyers and homeowner association boards across the country — even depressing prices and blocking refinancings? Individual owners and realty agents are emphatic that the answer is yes. They say a series of rule revisions by the Federal...Read Full Story>>

Fixed FHA Mortgages Starting at 3.750%

Is a 20% down payment the only thing that is keeping you from purchasing a home?  Are you a long-time renter in the market for a home?  An FHA-insured mortgage may allow you to become a homeowner. One of the most attractive features of the FHA mortgage program is that it only requires a minimum down payment of 3.5%, whereas traditional lenders often require a down payment...Read Full Story>>

Vulture Investors Buy Discounted FHA Loans

Four years after the housing bubble popped, 11 million homeowners owe more on their mortgages than their houses are worth. On the theory that easing the debt burden for those underwater borrowers would boost consumer spending and lift the overall economy, the U.S. government is experimenting with a program to sell delinquent loans to investors at a discount...Read Full Story>>

THE FHA BLOG CAFE

Getting Files Closed
Written By: Bonnie Wilt-Hild, Senior FHA DE Underwriter 

Ok, so I have been in the mortgage industry for 25 years and I have to say, this end of the month has been the worst ever. Well maybe not the worst but it ran a very close second. More frightening is the fact that we didn’t close near the volume that we have closed in past months. My assessment as to why it all seemed so difficult has everything to do with a complete lack of...Read Full Blog >>

Is it working
Written By: Theresa Furzland

Is a little-publicized switch in federal mortgage policy causing huge problems for condominium sellers, buyers and homeowner association boards across the country — even depressing prices and blocking refinancings? Condo industry leaders, from the 30,000-member Community Associations Institute to individual unit owners and realty agents, are...Read Full Story>>

Carol Galante Nominated by Obama for Top FHA Post

President Barack Obama has officially sent his nomination of Carol J. Galante of Virginia to be an Assistant Secretary of the U.S. Department of Housing & Urban Development (HUD) to the U.S. Senate. In July, Galante was named Acting Federal Housing Adminstration (FHA) Commissioner and Assistant Secretary of Housing, replacing Robert C. Ryan, who moved on within the Department to...Read Full Story>>

Using Sweat Equity for FHA Mortgage Down Payments

As the popularity of FHA mortgages continues to rise, borrowers are becoming more informed about the various options available for the required down payment. One of these options that many are already implementing is using sweat equity for FHA mortgage down payments. In other words, sweat equity is work that is performed by the borrower and is often used with homes that...Read Full Story>>

THE FHA BLOG CAFE

Streamline Refinance Transactions
Written By: Bonnie Wilt-Hild, Senior FHA DE Underwriter 

Wow, talk about an increase in volume. With interest rates down there seems to be a renewal of interest in the FHA Streamline refinance program. It actually makes sense really, considering that many mortgages were refinanced into FHA mortgage types during 2008 and 2009 to relieve borrowers who had previously been placed in subprime mortgage types, the burden of excessive...Read Full Blog >>

Paperless Power – Pros and Cons
Written By: Theresa Furzland

As all mortgage rates have headed downhill, FHA has done quite well keeping competitive by offering low FHA mortgage rates. For existing homeowners who are paying off an FHA mortgage loan, there is a great tool to refinance for better terms. Low FHA mortgage rates are available for FHA streamline refinances which can be one of the...Read Full Story>>

HUD Chief Says FHA Insurance Fund Looks OK, Barring Second Recession

Are there any surprises in store for the annual actuarial review of FHA’s Mutual Mortgage Insurance Fund? Not likely, Department of Housing and Urban Development Secretary Shaun Donovan told Mortgage Bankers Association Conference attendees in Chicago, on Tuesday. When asked if there is any indication what the study will reveal, Donovan seemed optimistic. “The quality of...Read Full Story>>

FHA Home Affordable Modification Program Sees Improvements In Help Offered To Homeowners

Homeowners with an FHA-insured mortgage may find themselves in a position where payments are difficult to meet, and this is the case with a variety of homeowners in different situations, in terms of not only their financial distress but their mortgage servicer.  However data that we have seen released here in the month of October has indicated that the FHA’s modification...Read Full Story>>

THE FHA BLOG CAFE

Just the Truth Please
Written By: Bonnie Wilt-Hild, Senior FHA DE Underwriter 

Does it ever cease to amaze you how people can twist the facts with regards to almost any situation in order to achieve the results that would most satisfy them even if those results achieve no end. In this day of mass media and the information highway, articles and blogs can be placed on the internet in a matter of minutes and unfortunately, many of the authors of this information have...Read Full Blog >>

The Underwriting Scales of Justice
Written By: Theresa Furzland

Driven by a wave of FHA loans, applications for mortgages to purchase a home reached their highest level since May last week, but they still trail the 2010 application rate by more than 34 percent. Purchase application rates are good indicators of future sales, and the weekly uptick could indicate an improvement in demand that...Read Full Story>>

Production Jobs; FHA Streamline Issues; MERS Victory; More on NMLS training; Investors Suspending Programs & Limiting AMC's

On one side, Kinecta Federal Credit Union is continuing to grow its business and is hiring Retail Mortgage Loan Consultants and Sales Associates throughout Southern California. It is also growing its wholesale lending with AE positions open in California, Kansas Iowa, Utah, Idaho and the Northeast US.  "Kinecta FCU is one of the nation's leading Credit Unions, with more than $3.5 billion in...Read Full Story>>

FHA Official Statement: HECM Financial Assessment Is Allowed

In a letter published today by Federal Housing Administration Acting Commissioner Carol Galante, FHA stated that there are no restrictions on underwriting for tax and insurance for HECM loans and that FHA is working on changes to the HECM program that will make it more successful. “HUD does not prohibit the inclusion of additional financial capacity and credit assessment...Read Full Story>>

FHA mortgage rates are hovering around their all-time lows.  If you’re considering purchasing a home for the first time ever, now is an ideal time to take advantage of the FHA’s mortgage program. One of the biggest hurdles to homeownership is the large down payment required by traditional lenders. Frequently, banks require down payments 20 percent...Read Full Story>>

The Benefits Of An Fha And Va Home Loan:

Generally, FHA standards are less strict when it comes to mortgage insurance, and while you likely will not qualify for conventional financing, an FHA Home Loan is your key to home ownership. Because every FHA Specialist from our company is fully trained in the HUD-insured loan industry, we can help you: * Find all the information you need on FHA Guidelines to see if you qualify for an...Read Full Story>>

Awaiting FHA changes on refinancing

Question: I recently read a newspaper article you wrote in January about the possibility that the Federal Housing Administration is considering changing its policy with regard to refunds for people who refinance and wanted to know if you know of any updates. I refinanced in May and have been getting the run-around from the FHA and my...Read Full Story>>

THE FHA BLOG CAFE

Something to Believe In
Written By: Bonnie Wilt-Hild, Senior FHA DE Underwriter 

Pretty recently I was having a conversation regarding homeownership opportunities for low to moderate income borrowers with an employee of a department of housing and community development agency within the city that I live. The conversation had begun during a discussion with respect to city owned properties and the liquidation...Read Full Blog >>

Love Hurts
Written By: Theresa Furzland