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Inside FHA/VA Lending

March 5, 2010

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FHA Delinquency Still Raising Eyebrows

While the FHA delinquency rates are at record highs, government data on the cure rates of those delinquent loans show that the problem may not be as pressing as some observers think. As the Department of Housing and Urban Development tries to shore up the program, an increasing share of FHA mortgages are delinquent each month, causing continuing worry about the program’s financial health... Read More

January Applications Fall From Tighter Standards

The number of applications for FHA-insured mortgages dropped dramatically in the first month of 2010, which the Department of Housing and Urban Development attributed to inclement weather and tighter underwriting standards for streamline refinancing in mid-November. The trend could also signal the FHA playing a smaller role this year than it did in 2009 as lenders are tightening up their... Read More

Secondary Market Delivery Could Give H4H Life

While many mortgage market participants are waiting for the Department of Housing and Urban Development to again fix the HOPE for Homeowners program, one company is trying to take the matter into its own hands. Banker’s Portfolio LLC, based in Irvine, CA, announced in late February that it secured a forward commitment for the purchase of securities backed by H4H loans and is rolling out the H4H product... Read More

HUD Ironing Out FHA-HAMP Incentive Payments

The FHA’s version of the Obama administration’s Home Affordable Modification Program has been underway for several months, but the Department of Housing and Urban Development is still trying to finalize the mechanism for delivering incentive payments to servicers who participate. Servicers who use the FHA-HAMP are eligible to receive incentive payments of up to $1,250, according to the original... Read More

FHA Rate Assumption an Option, Not Widely Used

One somewhat hidden benefit to FHA loans is that the mortgage is assumable, meaning an FHA borrower who re-sells a house when interest rates are higher can offer a potential buyer the right to assume his low-rate FHA loan. But only a handful of borrowers actually use this advantage, according to the Department of Housing and Urban Development. After being approved by the FHA, the new homebuyer can... Read More

FHA Briefs

Ted Tozer was sworn in last week as the president of Ginnie Mae, where he will be tasked with ensuring Ginnie safely guarantees the principal and interest payments on mortgage-backed securities backed primarily by FHA loans. “I am looking forward to the challenges and I believe my 30 years experience in the mortgage capital markets has uniquely prepared me to manage Ginnie Mae, and work to strengthen it... Read More

States See FHA Increase, Less Broker Use

Every state saw a significant increase in FHA lending in 2009, but lenders decreased their use of mortgage brokers, a trend which could continue in 2010 as the Department of Housing and Development increased lender accountability for their correspondents’ actions. Nationwide, FHA production increased 48.9 percent from 2008 to 2009 with some of the smaller states seeing the largest year-over-year... Read More

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