Articles Tagged With: FHA Loan News

December 8, 2017

FHA Revises Policy On PACE Assesments

The FHA has revised its’ policy on home loans for properties encumbered by Property Assessed Clean Energy (PACE) obligations. According to the FHA official site, in 2016 the agency “established requirements regarding the eligibility for FHA-insured mortgages of properties encumbered with PACE obligations that permitted, under some circumstances, a continuing obligation for repayment of the PACE obligation even after foreclosure and acquisition by FHA.” But that policy has since come under review due to concerns “for increased losses to the Mutual Mortgage Insurance Fund due to the priority lien status given to such assessments in the case of default.” According to the official site, the agency “is also concerned with the lack of consumer protections associated with the origination of the PACE assessment, which are far less comprehensive than that | more...

November 29, 2017

FHA Loan Rules For Loan Approval: Federal Debts and Tax Liens

By Joe Wallace

FHA loan rules for loan approval include instructions to the lender about unpaid federal debts and tax liens. Your chosen participating FHA lender is responsible for verifying your income, employment record, and your monthly financial obligations-which may include tax obligations such as a lien, or a federal debt. Unresolved taxes and federal debt can be a serious issue that will affect a home loan application. The status of such debt is one of the most important factors. According to HUD 4000.1, “Mortgagees are prohibited from processing an application for an FHA-insured Mortgage for Borrowers with delinquent federal non-tax debt, including deficiency Judgments and other debt associated with past FHA-insured Mortgages.” The FHA loan rules in this section also add that the lender is required to determine “whether the Borrower(s) have | more...

November 9, 2017

HUD Makes Disaster Relief Available For California Wildfire Victims

By Joe Wallace

The Department of Housing and Urban Development has announced disaster relief for victims of California wildfires, following a presidential declaration of federal disaster areas in the state. According to a press release published on the HUD/FHA official site, “HUD will speed federal disaster assistance to the State of California and provide support to homeowners and low-income renters forced from their homes due to wildfires” in the counties affected by the major disaster declaration. Those counties include: Butte Lake Mendocino Napa Nevada Orange Sonoma Yuba Those in federally declared disaster areas are eligible for a variety of measures from the FHA and HUD including FHA loan foreclosure relief in the form of a 90-day moratorium for all FHA mortgage foreclosure actions in the affected areas. Home owners may also be eligible | more...

November 7, 2017

HUD Takes Measures To Speed Up Hurricane Recovery Efforts

By Joe Wallace

HUD has announced it is taking measures to speed up hurricane recovery efforts through a series of red tape-cutting waivers that affect regulatory and administrative procedures. According to a press release on the official site, a set of 19 waivers have been created, intended to help communities “to accelerate their recovery from Hurricanes Harvey, Irma and Maria. While HUD granted a number of individual waivers following disasters in the past, today’s announcement represents one of the largest collections of regulatory and administrative waivers ever issued by the Department at one time” according to the HUD official site. A variety of programs are affected by these new waivers. They include: The Community Development Block Grant (CDBG) Program HOME Investment Partnerships (HOME) Program Housing Opportunities for Persons with AIDS (HOPWA) Program Emergency | more...

August 28, 2017

HUD Issues Announcement On HECM Loan Policy Changes

By Joe Wallace

The Department of Housing and Urban Development has issued a mortgagee letter detailing changes to the FHA loan HECM program (also known as FHA Reverse Mortgage program) effective for all case numbers assigned on or after September 19, 2017. According to Mortgagee Letter 2017-11, the changes affect how participating lenders proceed in cases where there has been a loan default for “unpaid property charges” and the sale of property secured by an FHA HECM that has been declared due and payable. According to the FHA/HUD official site, for cases where unpaid property charges cause a HECM loan to go into default, new guidance to lenders includes the following: “If a Borrower is unable or unwilling to repay the Mortgagee for any Mortgagee funds advanced to pay property charges, the Mortgagee | more...

August 28, 2017

White House Announces Federal Disaster Assistance For Texas

By Bruce Reichstein

On Friday, August 26, 2017, the White House announced federal aid for Texas to help affected counties in the state recover from Hurricane Harvey. According to Whitehouse.gov, the President “declared that a major disaster exists in the State of Texas and ordered Federal aid to supplement State and local recovery efforts in the areas affected by Hurricane Harvey beginning on August 23, 2017, and continuing.” A complete list of affected counties named as federal disaster areas is not available at the time of this writing, and conditions may be such that more counties are listed in the coming days or weeks. But for all affected areas, the FHA and HUD have disaster relief measures that can help home owners trying to recover from the effects of the hurricane including high | more...

May 4, 2017

Mortgage Loan Interest Rate Trends: Up And Down

By Joe Wallace

In our last report we noted that mortgage loan interest rate numbers could be influenced by the substance of the most recent Fed announcement, or more specifically investor reaction to those details. Rates did try to creep lower ahead of Wednesday’s Fed event, and Wednesday morning it seemed like rates were trying to move lower still. But the Fed came and went, rates began to move higher, and according to our sources at the end of the day on Wednesday we were right back to where things were at before the pre-Fed downward movement. Which is to say that rates have been moving up and down within a certain range without any real major, breaking news-type dramatic shifts. 30-year fixed rate mortgage loan interest rate numbers are in a best | more...

April 19, 2017

Mortgage Rate Trends: Lower Still

By Joe Wallace

We have devoted more column space to mortgage rate trends than usual this week, due in part because the short-term trend is definitely about moving lower, and we’re finally watching mortgage rate numbers dip into pre-election territory. There is absolutely no way to predict how long this trend will persist, but those who were holding out hope that we might see a move back to pre-November levels are being rewarded this week. Industry professionals and market watchers are quick to point out that this move lower has a lot to do with a combination of overseas economic news and a less-than-enthusiastic reaction from investors from the first 100 days of the new administration where fiscal policy is concerned. The first 100 days ends soon, are there more surprises coming? That | more...

April 12, 2017

Mortgage Loan Interest Rate Trends: New Lows

By Joe Wallace

In our last report, we noted that mortgage loan interest rates had been on the move, losing a small amount of ground over the previous two business days. We also noted that it was too early to tell if that was becoming a trend, or if the move higher was a short-term fluctuation. At the time of this writing, mortgage rates have since plunged to lows we haven’t seen for a majority of the year. There are complex reasons why rates have suddenly moved downward. Global political headlines often play a role in the direction of mortgage rate movement, especially when those headlines have far-reaching implications. This week we’ve seen French elections, Russia and North Korea dominate headlines in ways that have investors moving their cash into safer bets, which | more...

April 11, 2017

Mortgage Loan Interest Rate Trends: Higher

By Joe Wallace

Since our last report, mortgage loan interest rates have risen slightly but overall remain within the same range as we’ve been reporting on now for several weeks. Both Friday and Monday saw rates moving higher in spite of conditions that have in the past contributed to helping rates move lower. This is not unusual, but it happens infrequently enough to raise eyebrows among those who aren’t used to watching these ups and downs. The contrarian moves in rates as of late gives market watchers reason to be lukewarm on “floating” or holding off on a mortgage loan interest rate lock with a lender in hopes that rates may go lower before the lock agreement is finally made. The moves higher aren’t enough to create the impression that we’re headed into | more...