FHA Offers Mortgage Relief Solutions
Filed under FHA Articles, FHA Mortgage Articles, FHA Mortgagee Letters, FHA news, FHA refinance, Mortgage Reform, Mortgage Rescue Articles, Published Articles · Tagged: FHA mortgage relief, FHA refinance guidelines, mortgage relief companies
FHA borrowers have refinance options that enable struggling homeowners to avoid going the loan modification route. There is nothing wrong with getting a loan modification, but you can expect the process can take 6-12 months and you risk you losing your home in the process. Just last week, the New York the state attorney general, Andrew Cuomo, has sent cease and desist letters to more than 200 loan modification companies. The FHA loan Pros published an article that discussed how FHA customers could get relief without getting tangled up with mortgage relief companies. They pointed out that laws for mortgage relief companies vary by state but Cuomo reached out to homeowners with FHA mortgage relief insured by HUD.
The NY attorney general’s office said “Mortgage relief companies target homeowners facing foreclosure by promising to restructure their home loans with an affordable loan modification. Cuomo accused these mortgage relief companies of operating in deceptive practices that lure distressed homeowners to pay them for mortgage relief services, yet they often fall short to modify the mortgage.
The FHA Mortgage Solution
First of all FHA has been helping struggling homeowners since 1934. With their flexible FHA guidelines, HUD has been a leader in the foreclosure prevention arena. FHA has solidified a good reputation for rectifying FHA loans in default. In 2009 the FHA annual report says that “82.7% of the FHA mortgage loans that were 90 days or more delinquent were brought under control.”
To get FHA mortgage relief, you need to contact a HUD foreclosure avoidance counselor at http://www.hud.gov/offices/hsg/sfh/hcc/fc/. There is no fee for their mortgage relief services so you have nothing to lose. FHA refinance guidelines remain more flexible than conventional loan programs. For borrowers who don’t have much home equity, they may still qualify for a rate and term FHA refinance at 96.5%.
House Raises FHA Mortgage Insurance Premiums
Filed under FHA Articles, FHA FAQ, FHA Guidelines, FHA Mortgage Articles, FHA Mortgagee Letters, FHA news · Tagged:
Yesterday, the U.S. House of Representatives approved a bill to inject finances into the FHA by approving the authority to raise FHA mortgage insuance premiums. The FHA reserves are low and it created significant cash flow problems that the government was forced to deal with. It is no secret that Federal Housing Administration is strapped for cash because all of the recent FHA defaults that continue to mount. The government also considered a measure to raise the FHA loan limits used to develop some apartment buildings. In a 406-4 vote, lawmakers approved legislation to strengthen the finances that back the FHA home loans by giving it authority to nearly triple the annual fees it charges to borrowers, known as mortgage insurance premiums. Read the original article > House Approves FHA Bill to Reestablish Finances
Will FHA Mortgage Programs Survive?
Filed under FHA Articles, FHA Guidelines, FHA Mortgagee Letters, FHA news, FHA requirements, Mortgage News · Tagged:
FHA has been in the news a lot lately. Yes, FHA mortgage rates are low, but the FHA mortgage program as a whole may be in jeopardy of existence. Many FHA blogs have posed the reality that FHA financing is at serious risk to be shut down. In this political climate it becomes obvious that anything is possible because Congress must pass bills to continue to fund the FHA mortgage programs. FHA first time home buyer loans have been promoting home ownership since the great depression. Even as we discuss their recent failures, the argument could be made that FHA is one of the most successful government initiative in the last century. Read the original article > Is FHA Mortgage Financing in Trouble?
FHA Mortgage Guidelines 10% Down for Low FICOs
Filed under FHA Credit, FHA Guidelines, FHA Mortgage Articles, FHA Mortgagee Letters, FHA news, FHA requirements · Tagged:
FHA continues to alter their FHA mortgage guidelines in an effort to improve its depleted cash reserves. A few days ago, the Federal Housing Administration unveiled tighter FHA guidelines with changes to the FHA requirements for underwriting new home loans and refinancing. For the first time, FHA credit requirements will penalize applicants with challenged credit. One of the FHA requirements changes will mandate larger down-payments for borrowers with bad credit or low FICO scores. In addition FHA will increase in the upfront mortgage insurance premium to 225 basis points. We also anticipate FHA, to expand their criteria for mortgage refinance guidelines in 2010.
FHA commissioner David Stevens declined to provide any guidance on how much money the changes will raise for the reserve fund. Most of the new FHA guidelines outlined Wednesday will go into effect in the next few months. The 10% down-payment is required for borrowers with FICOs of less than 580. The MIP will be increased in a few months from the current charge of 1.75 basis points.
FHA Delays Implementation of HVCC Standards
Enactment of ML 2009-28, Appraiser Independence, will be delayed until February 15, 2010. ML09-28 This bill was originally planned for a January 1, 2010 implementation and has two parts: a) prohibition of mortgage brokers and commission-based lender staff from the appraisal process, and b) appraiser selection in FHA Connection. The effective date for both sections of this guidance will now take effect for all case numbers assigned on or after February 15, 2010. This extension will provide FHA mortgage lenders additional time to adjust systems to accommodate the changes. FHA mortgage loans have become very popular in the last few years.
Detailed instructions on changes to FHA Connection will be issued in a new mortgagee letter. However, lenders should be aware that the requirement for inputting the appraiser ID and the appraisal assignment date in the FHA Connection case number assignment screen will be removed. Instead, home loan lenders will be required to enter all appraisal data, including the appraiser ID, in the Appraisal Update Screen once the completed appraisal is received by the lender and prior to closing the FHA loan.
