FHA Mortgage Success with Making Home Affordable

The past week we saw the State of California pass a law that banned advance fees for loan modification companies with the announcement that more than 500,000 FHA loan modifications in progress under the Making Home Affordable program. These are better results for FHA that saw very few homeowners receive mortgage relief with the Hope for Homeowners and FHA Secure refinance products. What we had before 949 applications under the Hope for Homeowners Program and only 1 mortgage approval. The FHA Secure program allowed only 3,794 delinquent borrowers who had conforming mortgages to refinance with FHA mortgage lending in 2008.

In contrast, the Obama Administration reports that 2,484,783 borrowers have sought information under the Home Affordable Modification Program (HAMP) through the end of September. Of this number, 757,955 were offered three-month trial modification and 487,081 loan modification agreements have begun. If the borrower makes three lower payments during the trial period then the loan is permanently changed to that lower rate and hopefully the home is saved from foreclosure.


FHA Hope for Homeowners Amendment

This FHA loan enables homeowners can recapture 10% equity in their house immediately and benefit from mortgage relief with lower your mortgage payments with a FHA H4H Act Loan.  The amendment would keep in place current taxpayer protections in the HOPE for Homeowners program that would be stripped if the bill passed without the amendment. 

Rep. Bachmann introduces a taxpayer friendly amendment to H.R. 384, the TARP Reform and Accountability Act.  FHA mortgage lending continues to blaze a trail for home financing with thoughtful foreclosure prevention measures.

FHA Lending by Community-Based Mortgage Lenders

Posted on December 15, 2008 by admin 
Filed under FHA news, Published Articles · Tagged: , , ,

Community banks, thrift institutions, and credit unions seeking to serve mortgage customers with loans insured by the Federal Housing Administration (FHA) can qualify for FHA loan approval with minimal capital investment, according to author and mortgage expert Anna DeSimone.  Operating as Supervised Correspondents, local lenders can offer FHA mortgage loans, including options such as Reverse Mortgages, FHA Secure, and Hope for Homeowners. Supervised correspondents maintain control of all aspects of the client relationship without the necessity of hiring FHA-certified personnel.

“FHA mortgage lending is no longer just a product option. For community-based institutions, it’s an imperative for helping to sustain our neighborhoods,” stated DeSimone, founder of Bankers Advisory and author of twelve books and numerous articles on the mortgage business.  DeSimone, who also wrote the three-volume “Responsible Lending Series” on FHA mortgage lending, pointed out that banks seeking to become direct FHA mortgage lenders must invest in substantial training and have a Direct Endorsement underwriter on staff. But as she emphasized in a seminar attended by 80 community banks last March at the Boston Federal Reserve, the supervised correspondent option enables the banks to enter the market quickly and with minimal expense.

FHA mortgage lenders can look to specialists like Bankers Advisory for assistance with FHA licensing and initial steps which include structuring relationships for outsourced underwriting and private-label servicing.  “Community bankers have done well in expanding residential mortgage lending to include affordable housing, soft seconds and mortgages sold to secondary market investors. But recent legislation, including the Housing and Economic Recovery Act and portions of the so-called ‘bailout bill’ are tied to FHA loans. Most small lenders are not familiar with the back-end obligations of FHA home lending, such as quality control compliance and reporting requirements,” explained DeSimone.

Bankers Advisory’s “Audit and Assessment Guide” has 80 pages of step-by-step instructions on submitting reports through the FHA’s mandatory online reporting system.  The company also helps lenders adhere to HUD’s strict directives on quality control through QC plans and services that cover post-funding quality control, document re-verification, trend reports, risk monitoring and compliance.

About Bankers Advisory ( www.bankersadvisory.com )  Founded in 1986, Bankers Advisory has helped mortgage lenders throughout the United States achieve high standards of credit quality and employee proficiency through a full range of audit and consulting services, customized policy manuals, training, and workflow development.  Bankers Advisory has an unparalleled reputation for excellence in the mortgage industry and among national and state banking agencies. The firm’s underwriting experts have audited more than 50,000 FHA mortgage files. Thousands of employees have been trained on Banker’s Advisory’s educational materials.