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How Long Does a Loan Modification Take?
Wells Fargo Signs Home Affordable Second-Lien Modification Program...March message from the desk of the FHA Commissioner
(LoanSafe.org) – Recently FHA announced significant changes to strengthen its capital reserves, while enabling the agency to continue to fulfill its mission to provide access to homeownership for underserved communities. These changes are the latest in a series of efforts we have undertaken to better position FHA to manage its risk while continuing to support the nation’s housing market recovery. Read more
FHA Changes Offer Prudent Course Without Negative Impact On Minority Borrowers
(LoanSafe.org) – Burden To Borrower Is Modest & Ensures Access To Responsible Credit
Washington DC — David Berenbaum, Chief Program Officer, National Community Reinvestment Coalition, issued the following statement today about the Federal Housing Administration’s changes to its mortgage program:
“The changes announced today by the FHA represent an attempt to navigate a prudent course without negatively impacting access to credit or contributing to a further slowing of the housing market in communities of color. While Read more
3 Lenders to No Longer Participate in FHA Lending
“Mortgagee Review Board underscores FHA’s stepped up lender enforcement efforts”
WASHINGTON – The Federal Housing Administration’s Mortgagee Review Board (MRB) today announced that it is immediately and permanently withdrawing the FHA approval of three mortgage lenders and is suspending a fourth. The MRB withdrew the FHA approval of Strategic Mortgage Corporation (Strategic), ProMortgage Inc., and Americare Investment Group Inc. (doing business as Premier Capital Lending. Additionally, the MRB has suspended the FHA approval of Home Mortgage, Inc. (HMI) of Burr Ridge, Illinois. Read more
Can the FHA Raise More Money?
With all the mooing and carping about FHA reserves, most of it wrong, there still remains the issue that the FHA mortgage program, like all loan insurance efforts, needs to be reinforced.
HUD Secretary Shaun Donovan offered an interesting insight in how the FHA mortgage program can be made more secure and less risky in testimony last week before Congress.
To start, Donovan noted that HUD has dumped 270 FHA lenders. This is a little-discussed matter, but you have to wonder what losses have been sustained as a result of lenders who did not meet program standards for one reason or another. You can bet with absolute certainty that HUD is going to make lenders get loan applications right — and pay the price when they don’t.
FHA Home Loan Guidelines Will Get Tougher
The Federal Housing Administration is definitely not immune to our financial crisis and as a result, the amount of money currently found in its reserve fund is below the mandated minimum. FHA, along with a few lawmakers, are looking into raising the up-front costs borrowers will have to deal with and as a result, getting a mortgage insured by FHA might end up being more expensive.
At this point, over 30% of the market is represented by these government loans. Given the fact that a considerable number of people are currently unable to keep up Read more
What is a FHA insured loan?
There is a lot of confusion when it comes to Federal Housing Administration (FHA) loans. One major reason why is because they are not loans at all. The FHA insures mortgage loans to help borrowers that are not able to qualify for a regular loan. This program has been around since the early 1930’s.
If the borrower begins to miss payments and defaults on the loan, the FHA is obligated to pay the lender for the missing payments. Once this happens, they will begin to charge the borrower fees for the missed payments. Read more