FHA
By Carrie Bay | 04/10/2012
Nineteen members of California's congressional delegation want to keep Fannie Mae's and Freddie Mac's "for rent" signs outside their state's borders. Led by Congressman Gary Miller, the group sent a letter to Edward DeMarco, acting director of the Federal Housing Finance Agency, petitioning him to exclude the 600 homes in California slated for the pilot program of the REO Initiative, which aims to sell off homes repossessed by the GSEs and FHA to institutional investors who will turn the properties into rental homes.
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By Esther Cho | 04/09/2012
The Federal Housing Administration (FHA) rule preventing potential borrowers with outstanding collections debt of $1,000 or more from getting an FHA-insured loan is on hold until July. The rule - which FHA says is intended to lower defaults but many in the industry warn would prevent even more consumers from taking out a loan - took effect April 1, but will now be delayed until July 1, 2012, according to a notice issued by the FHA.
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By Esther Cho | 04/05/2012
Starting next Monday on April 9, FHA upfront mortgage insurance premiums will rise from 1 percent to 1.75 percent of the base loan amount, and the annual mortgage insurance premium will rise by 0.10 percent for loans under $625,500 and by 0.35 percent for loans above that amount. Even if one hasn't applied for a loan just yet, Dan Green, loan officer with Waterstone Mortgage in Cincinnati and author of themortgagereports.com, said by getting an FHA loan registered by April 9, one can avoid paying those premiums.
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By Esther Cho | 03/27/2012
After a forecast from Moody's Analytics hinted that the Federal Housing Administration (FHA) is at risk of requiring a taxpayer bailout, the FHA released a myths and facts sheet and categorized speculation about a bailout as myth. "Sweeping changes enacted by FHA since 2009, including an important series of recent steps such as the enforcement actions that resulted in over $900 million in compensation to FHA from settlement agreements with major banks, and further increases to FHA's insurance premiums, it is unlikely that FHA would require additional resources from the U.S. Treasury in FY 2012," the FHA stated.
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By Esther Cho | 03/26/2012
The FHA released two notices to mortgagees and servicers on Friday regarding new policies in effect. Safeguard Properties aslo posted the announcement on their website.
The first reminder is on escrow funds/payoff statements and states that escrow funds should not be used for outside purposes.
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By Esther Cho | 03/23/2012
Dallas-based mortgage lender AmericaHomeKey (AHK) can no longer do business with the FHA due to repeat violations of FHA requirements, HUD's Mortgagee Review Board (MRB) announced its Friday. AHK can no longer originate and underwrite new mortgages insured by the FHA, and the MRB is imposing $268,000 in penalties.
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By Krista Franks Brock | 03/15/2012
The Federal Housing Finance Agency (FHFA) released its final rule regarding private transfer fees Thursday. After reviewing the 4,200 comments it received in response to its proposed guidance, the FHFA is issuing a rule that restricts Fannie Mae, Freddie Mac, and the Federal Home Loan Banks from taking on mortgages and related securities encumbered by certain types of private transfer fee covenants, also known as Wall Street home resale fees.
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By Esther Cho | 03/06/2012
Through a streamline refinance program, borrowers with FHA-endorsed loans may find it easier lock in lower interest rates while paying less in fees. Beginning June 11, 2012, the FHA will lower upfront mortgage insurance premiums to .01 percent and reduce annual premiums to .55 percent for certain FHA borrowers, Carol Galante, acting commissioner of the FHA, announced today. To be eligible, borrowers must to be current on their FHA-insured loans, which need to have been endorsed on or before May 31, 2009.
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By Carrie Bay | 02/28/2012
The Federal Housing Administration (FHA) has seen its capital reserves quickly dissipate over the past few years amid a growing number of mortgage defaults and payouts on insurance claims. In an effort to bolster its capital cushion, the federal agency has announced a new premium structure for FHA-insured single-family mortgage loans. FHA will increase its annual mortgage insurance premium by 0.10 percent for loans under $625,500 and by 0.35 percent for loans above that amount. Upfront premiums will also increase by 0.75 percent.
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By Esther Cho | 02/16/2012
CitiMortgage, a subsidiary of CitiBank, agreed to pay $158.3 million due to claims that the bank failed to comply with HUD and FHA requirements in underwriting loans for federal insurance, and for stating certain loans were eligible for FHA's mortgage insurance program when they were not.
As a result of these actions, HUD incurred losses from defaulted loans that should not have been approved. CitiMortgage accepted responsibility for specific actions including failing to conduct a full review of certain loans it endorsed.
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