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Inside FHA/VA Lending

February 19, 2010

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Lenders Taking FHA Tightening Seriously

While the Department of Housing and Urban Development ponders whether to make further changes to the structure of the FHA program on top of the tweaks announced last month, lenders are already heeding the agency’s warning and preparing for a new era of responsibility. Already this year the FHA increased the upfront fee 50 basis points from 1.75 percent to 2.25 percent for mortgages made after April 5... Read More

Lenders Clinging to Hope on H4H

Servicers are still trying to use the FHA HOPE for Homeowners refinance program, but the initiative continues to putter along at a snail’s pace as rumors swirl around its future. The Department of Housing and Urban Development said some 1,000 applications had been received through January 2010, and approximately 100 H4H refis had closed. But initial expectations had projected that 400,000 borrowers... Read More

FHA Share of Home Purchase Market Falls

While it will be months before FHA’s increased annual fee or tougher credit score requirements take effect, the housing agency already is seeing a drop in activity in its most popular sector – the home purchase market. According to the latest Campbell/Inside Mortgage Finance Monthly Survey of Real Estate Market Conditions, FHA’s share of home purchases fell to 31.5 percent in January. This was... Read More

Appraisers Brace for FHA’s Version of HVCC

After twice delaying the implementation date of its stricter new appraisal policies, the Department of Housing and Urban Development went ahead with the Feb. 15 start of its guidelines, similar to the Home Valuation Code of Conduct used by Fannie Mae and Freddie Mac. Mortgagee Letters 2009-28 and 2009-51 outline the changes, which prohibit mortgage brokers and commission-based lender staff from... Read More

HECM Production Finishes Strong in Record Year

Lenders continued to churn out FHA home equity conversion mortgages in the fourth quarter of 2009, capping an all-time high mark of $30.21 billion in such loans in 2009. The full-year total was a 37.3 percent increase over the 2008 mark, according to the latest Department of Housing and Urban Development data, though the fourth quarter saw a 17.2 percent decrease in HECM originations from the... Read More

Ginnie Clarifies Nonexistent Role in FHA Mods

Ginnie Mae reminded issuers of its mortgage-backed securities that the agency itself does not modify loans, even under the Obama administration’s Home Affordable Modification Program. Under the FHA’s version of HAMP, loans may be bought out of Ginnie pools if the borrower is approved for a trial modification and the loan is in a continuous period of default for more than 90 days, Ginnie said... Read More

FHA Lenders Included in E-Verify Bill in House

A new bill introduced in the House this month would require FHA and other conforming mortgages to get certain electronic verifications before they can be modified. Rep. Kenny Marchant, R-TX, who sponsored the H.R. 4586, the Mortgage E-Verify Act, said mandating the use of the E-Verify program to establish a homeowner’s legal status would help eliminate waste, fraud, and abuse, and bring more integrity to the... Read More

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