Cart

Inside FHA/VA Lending

February 5, 2010

View Archived Issues

2011 Budget Proposes FHA Fee Tweak

The Obama administration’s proposed 2011 budget for the Department of Housing and Urban Development expects a drop-off in overall FHA volume next year and looks to alter the fees charged to FHA borrowers once again. HUD Secretary Shaun Donovan said the agency is requesting $48.5 billion for fiscal 2011, which would be offset by a projected $6.9 billion from FHA premiums, other credit enhancements and Ginnie... Read More

FHA Looks to Default Rates in Search of Red Flags

The FHA’s newfound focus on disciplining lenders for bad lending practices has grown even stronger, as the Department of Housing and Urban Development announced a clearly defined set of guidelines it will follow in monitoring lender performance and terminating underwriting authority in the FHA program. HUD announced in Mortgagee Letter 2010-03 that it will systematically review all direct... Read More

More Lenders Sanctioned; Fines Not Always Costly

The FHA’s hangman dragged another group of lenders to the gallows in recent weeks in a continuing demonstration that it means business. The latest wave of enforcement has seen a number of small players targeted for problem lending, but civil money penalties are often inconsequential. Strategic Mortgage Corp., ProMortgage Inc., Premium Capital Funding LLC (Topdot Mortgage) and Americare Investment Group... Read More

FHA Originations, Market Share Set New Highs

The FHA endorsed $375.79 million in loans in 2009 and accounted for some 21 percent of the total originations in last year, both record highs in production for the government insurance program. The $375.79 billion in originations, which includes some $31 billion in home equity conversion mortgages, was more than a $100 billion increase over the 2008 total of $253.87 billion, a 48 percent jump. In fact... Read More

FHA Gives Options to Borrowers Near Default

Servicers now have more options in dealing with FHA borrowers who are having financial problems but are not yet in default. The Department of Housing and Urban Development last week said in Mortgagee Letter 2010-04 that servicers can use principal forbearance or Home Affordable Modification Program mods to lower the payments of these borrowers. The Helping Families Save Their Home Act of 2009 expanded... Read More

VA Lending Nearly Doubles in 2009

The Department of Veterans Affairs saw its mortgage originations jump from $40.58 billion in 2008 to $74.04 billion in 2009, the largest total on record and a year-over-year increase of 82.4 percent, the largest ever. VA originations fell to $16.40 billion in the fourth quarter of 2009, the lowest quarterly total since the first quarter of the year, but that mirrored the overall drop-off in mortgage... Read More

Downpayment Assistance Is Back On the Table

A pesky program that the Department of Housing and Urban Development has fought to end resurfaced again in Congress with a bid to restore seller-funded downpayment assistance programs. A bill introduced in early 2009 by Rep. Al Green, D-TX, would restart the program, which allows nonprofit groups to donate the 3.5 percent downpayment requirement to low-income borrowers so they can qualify for... Read More

Latest Imf News

More Imf News

Featured Data

More Featured Data

Featured Reports

More Latest Reports

Featured Poll

As homeowner equity continues to build, more and more lenders are launching home equity lending products. Are you thinking of joining this market?

View Results