Articles Tagged With: FHA and HUD

April 28, 2020

HUD Updates Coronavirus Home Loan Guidelines For Loan Closing

The FHA and HUD have issued guidelines for mortgage loan closing procedures that may be affected by coronavirus lockdown measures, quarantine, and other issues related to the COVID-19 pandemic. Many home buyers were caught by surprise by coronavirus issues and there are many home loans that are affected. The Department of Housing and Urban Development issued initial policies in March, 2020, but updated them in mid-April to include provisions in several areas designed to help facilitate FHA home loans during the outbreak. FHA Loan Rules On Title insurance The FHA and HUD issued guidance on loan servicing issues designed to address situations in counties where recording offices are not operational during the national emergency. The FHA/HUD official site answers the following question related to such scenarios: “Will FHA accept title | more...

April 22, 2020

Mortgage Scams During COVID-19: Borrower Beware!

By Joe Wallace

The Federal Trade Commission warns mortgage borrowers to beware of scams that prey upon homeowners in trouble during the coronavirus outbreak. The FTC Chairman, Joe Simons, was quoted in an FTC press release advising borrowers about the FTC’s role in prosecuting scam artists taking advantage of Americans who have been affected by COVID-19. “The FTC is ready to assist businesses that may seek guidance about compliance obligations on consumer protection issues during this unprecedented time,” Simons said in the press release. If you have been contacted by a third party about coronavirus financial relief and suspect a scam artist at work, report coronavirus-related scams at ftc.gov/complaint. What should consumers do to protect themselves from coronavirus mortgage scams? The first step is simply to recognize that if you have not initiated | more...

April 21, 2020

How To Protect Your Credit

By Joe Wallace

Do you know how to protect your credit score during the COVID-19 outbreak? Millions of Americans have suffered economic setbacks as a result of containment measures designed to stop the spread of the virus, and many of them were already struggling with credit issues prior to the outbreak. How can you protect your credit going forward? The first step is to know what your credit report says and to actively monitor your credit. In some cases, credit problems wind up being the result of factors beyond the consumer including: Inaccurate credit report data Outdated credit information that needs to be removed Evidence of identity theft Credit report information that is accurate, but for someone else with the same name Any of these issues can hurt your credit, and they take | more...

April 16, 2020

HUD Issues More Guidance For COVID-19 Mortgage Relief

By Bruce Reichstein

The Department of Housing and Urban Development has issued guidance clarifying certain aspects of the coronavirus mortgage relief options; there are instructions for multi-family loans as well as for single-family FHA mortgages. Why are the multi-family rules good for the single-family borrower to understand? Borrowers with multi-family FHA loans who need of COVID-19 mortgage relief have similar requirements to those for single-family borrowers. If you know the approach your lender takes for FHA loans, you can make more fully informed choices about your loan including when to apply for economic relief and what options to choose. Borrowers have the option to request six months of loan forbearance or as much as a full year, depending on circumstances. Should you take the full year? Cut off the relief as soon as | more...

the importance of credit for home loan approval

April 14, 2020

Common Questions About COVID-19 Mortgage Relief For FHA Borrowers

By Bruce Reichstein

If you have an FHA mortgage and are worried about your ability to make mortgage payments during the economic shutdown over the coronavirus. What should you do? The FHA has some advice for you on taking advantage of the mortgage relief options provided by the FHA and HUD during the coronavirus pandemic. The FHA official site advises FHA borrowers to do three things if you are able: Continue to make your monthly mortgage payments if you are able to do so; If you are unable to make your mortgage payment, contact your mortgage servicer and discuss your situation with a loss mitigation specialist. Contact a HUD-approved housing counseling agency (you can get a referral by calling 1-800 CALL FHA). Have you lost your job? Have you been laid off, furloughed | more...

April 9, 2020

FHA Announces Updated COVID-19 Guidance For Participating Lenders

By Joe Wallace

The FHA and HUD have announced policy changes to the FHA Single-Family home loan rulebook, HUD 4000.1. These changes were announced in FHA Mortgagee Letter 2020-06 and address loss mitigation procedures specifically for COVID-19 related economic hardship. The prior version of HUD 4000.1 did not include specific guidance for lenders trying to help borrowers avoid foreclosure due to coronavirus issues; the old instructions are updated to include policies for lenders to help borrowers via CARES Act measures signed into law to help struggling companies and workers. The new additions to HUD 4000.1 include a new Section addressing the “Presidentially-Declared COVID-19 National Emergency” guidance for lenders, which is effective immediately takes precedence over disaster relief guidance issued prior to the pandemic. FHA loan rules for presidentially declared major disaster areas in | more...

April 8, 2020

Celebrating Fair Housing Month

By Bruce Reichstein

The month of April is Fair Housing Month, and even during COVID-19 woes and coronavirus outbreak containment efforts continue, the FHA and HUD are working to raise awareness of Fair Housing Act laws, your rights, and responsibilities. Sexual Harassment As A Violation Of Fair Housing Laws Fair Housing month is a campaign to raise awareness of the Fair Housing Act. The 2020 theme of the outreach is “Call HUD: Because Sexual Harassment in Housing is Illegal.” Where sexual harassment goes, HUD policy is very specific. “While any form of discrimination stains the very fabric of our nation, HUD is especially focused on protecting the right of individuals to feel safe and secure in their homes, free from sexual harassment or unwanted sexual advances,” according to a HUD press release on | more...

April 6, 2020

Did The FHA Raise FICO Score Requirements For Single-Family Home Loans?

By Joe Wallace

Did the FHA and HUD increase the minimum FICO score standards for Single-Family home loans, refinance loans, and reverse mortgages? At the time of this writing, the coronavirus pandemic is still affecting most industries across America including the real estate and mortgage loan sectors. You may read news stories about higher credit requirements making it tougher to qualify for a mortgage in the era of coronavirus; these stories may be accurate in their reporting of higher FICO score requirements at the time of this writing, but who is responsible for those requirements? The lowest FICO score technically possible according to the FHA to qualify for a loan (one with more expensive terms) is 500. That is the lowest FICO score possible to still qualify for a mortgage, on paper. Your | more...

April 2, 2020

HUD Announces New Mortgage Relief Options For FHA Borrowers Affected By COVID-19

By Joe Wallace

The coronavirus emergency has created difficult financial times for most Americans. Many wonder where they will find the money to meet their financial obligations including mortgage payments. Those who have FHA home loans should contact their loan servicers right away due to the latest round of coronavirus relief measures aimed at helping FHA borrowers save their homes from loan default and eventual foreclosure. The Department of Housing and Urban Development has provided a new coronavirus mortgage relief package for FHA borrowers above and beyond the original 60-day foreclosure moratorium issued previously. If you have an FHA mortgage, refinance loan, or One-Time Close Construction mortgage and are experiencing financial hardship as a result of the COVID-19 outbreak, you may qualify for certain relief measures that took effect April 1, 2020. Borrowers | more...

March 27, 2020

Mortgage Loan Approval During The Coronavirus

By Joe Wallace

Buying a home is more complicated in the era of the coronavirus. Borrowers face social lockdowns, restricted movement, and fears of infection. And the economy is feeling the effects of this, making markets more volatile, interest rates fluctuating daily (far more than usual), and other issues. There is a lot of speculation about the future of the mortgage industry, not so much a question of how it will survive (it will), but more about how the industry will look going forward. How hard will it be to qualify for a home loan or any major line of credit. Will FHA borrowers of the future need to bring higher credit scores and more dependable-looking credit history to the loan application process? To quote the old Magic 8-Ball toy, “Signs point to | more...