Articles Tagged With: HUD News

June 17, 2015

HUD Announces More Housing Counseling Grants

We write a great deal about the importance of housing counseling–especially for first time FHA loan applicants who might need some additional help with questions about the home buying process in general, getting credit ready for an FHA loan application, and what it takes to apply for a home loan after a bankruptcy or foreclosure. Yesterday HUD announced a new round of grants for housing counseling agencies that provide such services to FHA borrowers and other home loan applicants. HUDNo.15-074 announced nearly six million dollars in housing counseling grants, including “nearly $1.5 million to new housing counseling grantees and $4.5 million to supplement the funding awarded in April to existing grantees” according to the HUD press release. You can examine a comprehensive summary of each grant, organized by state as | more...

June 10, 2015

HUD Settlement In North Miami Beach Condo Housing Discrimination Case

By Joe Wallace

Housing discrimination is a violation of federal law. Sometimes that discrimination happens at the time a borrower applies for a home loan, other times it happens when the house hunter is looking for a home. But what about situations where a borrower has applied for a home loan, FHA or otherwise, closes the deal and moves in, only to find discrimination waiting for them once they are legally occupying the property? Such a case recently made headlines in North Miami Beach. The HUD official site has announced a settlement in a housing discrimination case in Florida. According to the HUDNo. 15-069, “The U.S. Department of Housing and Urban Development announced today an agreement with a North Miami Beach condominium association settling allegations its board president harassed and made discriminatory remarks | 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...

April 29, 2015

FHA Updates HECM Loan Due And Payable Policies

By Joe Wallace

The FHA and HUD have announced more changes to the FHA Home Equity Conversion Mortgage (HECM) loan program. A recent FHA Mortgagee Letter, “Home Equity Conversion Mortgage (HECM) Due and Payable Policies”, and affects all FHA HECM loans that become due and payable on or after July 1, 2015. The updates affect a variety of areas including: –a requirement for mortgagees to provide HUD notice of a HECMs Due and Payable status;–a requirement for mortgagees to provide HUD notice of the initiation of foreclosure;–obtaining required appraisals;–sales of properties securing defaulted or performing HECM loans;–extensions available when marketing a HECM for sale and/or participating in Hardest Hit Funds programs;–curtailment of debenture interest for missed deadlines This mortgagee letter announces FHA’s position on when HECM loans (with case numbers issued before August | more...

April 28, 2015

FHA Loan Program Changes To Help Prevent Foreclosure

By Joe Wallace

On Friday, April 24 2015, the FHA and HUD issued a press release detailing “significant changes” to the Distressed Asset Stabilization Program or DASP. According to HUDNo 15-048, “In an effort to better serve homeowners looking to avoid foreclosure, loan servicers will now be required to delay foreclosure for a year and to evaluate all borrowers for the Home Affordable Modification Program (HAMP) or a similar loss mitigation program.” “HUD is making additional improvements to the Neighborhood Stabilization Outcome (NSO) sales portion of DASP which are aimed at increasing non-profit participation. Updates include giving non-profits a first look at vacant properties, allowing purchasers to re-sell notes to non-profits, and offering a non-profit only pool.” That is a major alteration from the old standard, which permitted lenders to foreclose on a | more...

December 10, 2014

HUD Announces Changes To Making Home Affordable Program

By Joe Wallace

If you go to www.FHA.gov and look under the Press Releases section, you’ll find a recent update to the HUD Making Home Affordable program–an update that could mean thousands of dollars for some who take part in that HUD program. Some borrowers who got into trouble with their mortgages during the housing market crisis were able to take advantage of the Making Home Affordable program; the most recent update is good news for those who have been successful in it. According to a recent HUD press release, HUDNo.14-150: “WASHINGTON – The U.S. Department of Housing and Urban Development (HUD) and the U.S. Department of the Treasury today announced enhancements to programs under Making Home Affordable (MHA) to better assist struggling homeowners and communities still recovering from the effects of the | more...

October 16, 2014

HUD Awards Millions To Help Fight Housing Discrimination

By Joe Wallace

In recent weeks we’ve seen a variety of press releases from the FHA/HUD discussing settlements in cases where HUD investigated alleged violations of the Fair Housing Act and other anti-discrimination housing laws. Now, the Department of Housing and Urban Development has issued a press release announcing millions of dollars in federal funds being awarded to agencies trying to raise awareness of Fair Housing laws. According to HUDNo. 14-123, “The U.S. Department of Housing and Urban Development (HUD) today awarded $38.3 million to more than 100 fair housing organizations and other non-profit agencies in 43 states and the District of Columbia to address housing discrimination.” The HUD press release says that competitive grants in this area are funded via the HUD Fair Housing Initiatives Program, “to help enforce the Fair Housing | more...

October 9, 2014

HUD Settles “Redlining” Discrimination Complaint

By Joe Wallace

Have you ever wanted to apply for an FHA home loan only to experience what may be illegal discrimination forbidden by the Fair Housing Act? In some cases the discrimination may not even reach the borrowers themselves, as evidenced by a recent settlement announced by the HUD official site. According to a October 2014 press release issued on the FHA/HUD official site, “The Department of Housing and Urban Development (HUD) announced today that it has negotiated a Conciliation Agreement with Illinois-based Midland States Bancorp, resolving allegations that the bank avoided doing business in predominantly African American and Hispanic neighborhoods in St. Louis, Missouri and northern Illinois.” Federal Fair Housing Act laws state that it is illegal to, “deny or discriminate in the terms and conditions of a mortgage or loan | more...

July 24, 2014

FHA, HUD Announce Settlement In Housing Discrimination Case

By Joe Wallace

The FHA and HUD have announced a settlement in a New Hampshire housing discrimination case. According to HUDNo.14-089, a tenant filed two housing discrimination complaints against TKB Properties and the New England Family Housing Management Organization. Those complaints were settled and the settlement announced in the HUD/FHA press release. “The U.S. Department of Housing and Urban Development (HUD) announced today agreements with the owners and managers of two Berlin, New Hampshire properties, settling allegations that they engaged in housing discrimination when they refused to rent to a woman who was a victim of domestic violence. The Fair Housing Act makes it unlawful to discriminate in the sale or rental of housing because of race, color, national origin, religion, sex, disability, or familial status.” “No woman should be denied housing based on | more...

July 14, 2014

FHA and HUD Update Deed-In-Lieu and Pre-Foreclosure Sale Rules

By Joe Wallace

The FHA and HUD have issued a Mortgagee Letter updating the requirements for Deed-In-Lieu and Pre-Foreclosure sales for borrowers at risk of going into default on FHA home loans. Mortgagee Letter 2014-15, Updated Requirements for Pre-Foreclosure Sales (PFS) and Deeds in Lieu (DIL) of Foreclosure, completely updates and supersedes the previous FHA mortgagee letter in these areas. The new regulations could in some cases be implemented right away if participating lenders choose to do so, but FHA/HUD requirements state these rules will be in effect for all lenders as of October 1, 2014. The new guidelines include alterations or modifications of existing policy including the following as listed in the mortgagee letter: –Requirements for real estate agents and brokers participating in PFS transactions; –An initial listing period requirement for PFS | more...