Articles Tagged With: FHA Loan News

June 4, 2015

FHA Mortgage Loan Interest Rate Trends: Moving Higher

Since our last report, we’ve seen mortgage loan rates moving higher due at least in part to overseas economic headlines that have put pressure on rates here at home.We’ve been reporting on European Central Bank headlines making investors at home behave in ways that have been pressuring rates higher. The European version of Quantitative Easing or QE (news of which had been a major factor in adjustments in mortgage loan rates when it was being done stateside in years past) has helped to add some volatility to the mortgage loan rate situation here at home. Wednesday was no exception–A European Central Bank press conference did nothing to ease the upward pressure. Some reported waffling in that press conference on the nature of QE and under what conditions it might come | more...

June 1, 2015

FHA Loan Rule Changes and The New Single Family FHA Policy Handbook

By Joe Wallace

The FHA announced important changes to its single family home loan program for 2015–a new Single Family FHA Policy Handbook that would essentially be the go-to guide for all rules and regulations for a typical FHA home loan. The new handbook was supposed to go into effect in mid-June and take precedence over the old collection of policies. But the FHA and HUD have extended the deadline for this new handbook to go into effect and now existing guidance will be valid through September 14, 2015. According to the FHA official site, “As of May, 18, 2015 users can access the online SF Handbook for free from the link provided on HUDs Client Information Policy Systems (HUDCLIPS) web page. The online SF Handbook makes it easier for mortgagees and other | more...

May 29, 2015

FHA Mortgage Loan Interest Rate Trends: Slightly Better

By Joe Wallace

Since the three-day weekend that made this a short trading week, the overall trend in mortgage loan interest rates at the time of this writing has been “hold steady” or slightly lower–but not much. The month of May has seen basically what amounts to a new and higher range in mortgage loan rates overall–though still loan in comparison to previous years–and we’re seeing 30-year fixed rate conventional mortgage rates hovering at or near the 4.0% mark, best execution. Friday’s trends brought the 30-year fixed conventional mortgage loan rates in some best execution instances below 4.0%. Remember, “best execution” means rates offered extremely well-qualified borrowers. Your experience with these rates may vary. FHA mortgage rates have found a comfort zone of 3.75%, not as good as the previously held 3.5% (or | more...

May 28, 2015

HUD Announces Historic “Redlining” Settlement

By Joe Wallace

Redlining, the act of discriminating against a group of people in the mortgage loan servicing process, is prohibited by the Fair Housing Act. Redlining often goes undetected as long as those being discriminated against don’t file a complaint with the government. When such complaints are reported to the FHA and HUD, they are taken seriously and investigated to insure violations of the Fair Housing Act don’t continue. This week HUD announced a historic settlement in a redlining case in HUDNo.15-064. “The U.S. Department of Housing and Urban Development (HUD) today announced an agreement with Associated Bank, N.A. (Associated) to resolve a disparate treatment redlining case, one of the largest redlining complaints brought by the federal government against a mortgage lender. At approximately $200 million, it is the largest settlement of | more...

May 27, 2015

Shopping Around For An FHA Loan

By Joe Wallace

One thing that’s important for house hunters to do when looking for a home? Comparison shop. But that’s not just a good idea when it comes to measuring the price tag on a home; it’s also a very good idea to shop around for a lender in the same way you do looking for just the right home to buy with an FHA loan. A recent blog post on the HUD official site via The HUDdle discusses recent housing trends and developments in the home loan industry. One thing writer Ted Tozer notes, is that there has been a set of important developments in the industry as some major financial institutions dial back their participating in the mortgage lending market. Tozer writes, “As major banks have reduced their participation in | more...

When Is An FHA Loan Better Than A Conventional Loan?

May 21, 2015

FHA Loan Appraisals and Home Value: A Reader Question

By Joe Wallace

A reader asks, “We built a new home and within a few months started noticing moisture spots on our basement floor. After no action from the builder for 8 months, we have had to hire an attorney to make them start fixing it. It has been recommended that an interior peripheral drain (or a waterproofing system) be put in.” “The builder defect is our exterior drain was put in incorrectly so drainage water from rain and snow melt is ending up under our slab. I am very concerned about how this will effect resale someday. Have you seen an appraisal adjustment made on a home having this sort of system in place?” The problem with appraisal-related questions like this one is that conditions vary from market to market. What may | more...

May 20, 2015

HUD Settlement In Pennsylvania Housing Discrimination Case

By Joe Wallace

The FHA/HUD official site has announced an important housing discrimination settlement between HUD and a housing authority in Pennsylvania. According to HUDNo. 15-055, “The U.S. Department of Housing and Urban Development (HUD) announced today a Conciliation Agreement with the Housing Authority of the City of Hazleton, Pennsylvania, settling allegations the housing authority discriminated against Hispanic households.” The agreement, the HUD press release states, resolves claims that the Hazleton, Pennsylvania housing authority, “violated the housing rights of Spanish-speaking applicants and tenants by requiring them to supply interpreters in order to communicate with housing authority staff and by denying them limited English proficiency services.” This, the press release states, is a violation of the Fair Housing Act. “When housing authorities accept HUD funding they are obligated to make their programs and services | more...

May 11, 2015

FHA Loan Appraisals: Sewer/Septic

By Joe Wallace

A reader asks, “We closed on house on 3/31. Had inspection. Stated was sewer, prev owner said was sewer, realtor said was sewer. On 5/8 found waste backed up in toilet in basement, called plumber, found out we have a septic system, currently waiting on them to come out inspect and pump.” “We have a FHA loan. How was this missed? we have no problem paying to have it pumped, but who is responsible if it more then pumping out issue? The company we called (only one in area) stated he had just pumped it 2 years ago. So prev owners knew it was on septic.” There is one important question which must be answered–did the reader assume the FHA appraisal could substitute for a home inspection, or did the | more...

May 4, 2015

FHA Loan Rules For Re-Selling: A Reader Question

By Joe Wallace

A reader asks, “I purchased a manufactured home 10 months ago. I tried to sell it to a buyer whose lender told her that I as a seller have to won the home for at least a year before a buyer to use FHA for their loan. Is this a fact?” FHA loan rules do place a partial restriction on how the buyer can sell his or her property that has been purchased with an FHA mortgage loan. This restriction, known as the FHA’s “anti-flipping rule” requires borrowers to wait a minimum of 90 days before selling the property. FHA mortgagee letter 2014-06 spells out these rules, which were amended for a time with a waiver to the anti-flipping rule, but since those days are over a review of the | more...

April 28, 2015

FHA Loan Rules For Purchasing A Second Home: A Reader Question

By Joe Wallace

A reader asks, “I applied for a fha loan my contract on the house I am to purchase expires Thursday. I found out Wednesday night that I have to apply for an exception for the 2 fha loan rule and the house I am currently in and have on the market is a fha. I did not know this.” “I qualify for both loans but have no clue how to apply for an exception. I am sure I should be able to get it as I travel 1 hr 10 mins to 1 hr 40 mins each way to work due to traffic increase over the years and the new home is only 10 mins from work. Help! My lender is now help and has dragged this on for several | more...