Articles Tagged With: HUD

February 22, 2021

Texas Home Owners Get Federal Disaster Relief

Millions of homeowners in Texas were affected by severe winter weather and unprecedented freezing conditions there; On Monday, February 22, 2021 Texas residents woke up having had their state declared a federal disaster area. Those with FHA mortgages who own homes in the state of Texas are getting help from the federal government in the wake of deadly winter storms in the area affecting some half a million homeowners in the Lone Star State. President Biden has declared the state of Texas as a federal disaster area, and that means federal assistance for state and local recovery efforts. It also means Texas homeowners have access to disaster relief to help repair or replace homes damaged by the winter weather there. Do you have an FHA home loan? Contact your loan | more...

February 11, 2021

HUD Announces Fair Housing Act Protection Improvements

By Joe Wallace

There is good news from the Department of Housing and Urban Development; the agency has announced it plans to “administer and enforce the Fair Housing Act” with an eye toward eliminating discrimination based on sexual orientation and gender identity. In the earliest weeks of the Biden administration, the HUD Office of Fair Housing and Equal Opportunity (FHEO) issued a memorandum indicating that HUD will interpret the Fair Housing Act “to bar discrimination on the basis of sexual orientation and gender identity and directing HUD offices and recipients of HUD funds to enforce the Act accordingly.” This comes on the heels of the President’s executive order 13988, “Preventing and Combating Discrimination on the Basis of Gender Identity or Sexual Orientation” requiring executive branch agencies to examine further steps that could be | more...

February 4, 2021

FHA And HUD Announce More COVD-19 Relief Measures

By Joe Wallace

In the earliest weeks of the Biden Administration, the federal government has taken decisive steps to further address the economic impact of the COVID-19 pandemic. The latest of these measures is designed to reduce the need for in-person loan servicing in certain areas and also to give more time to home owners who may need to request help with their home loans. The latest waivers allow mortgage services to continue “in a manner that allows for safe social distancing to help combat the COVID-19 pandemic” according to the FHA press release. The waivers address aspects of any home loan in some cases, but are specifically aimed at certain types of loans in others. HECM borrowers will find the latest waivers help them in particular. “President Biden has made it clear | more...

January 26, 2021

FHA Loans And DACA

By Joe Wallace

The FHA and HUD have made a major announcement; FHA home loans are now available for those who are not U.S. citizens but who are living in the country under the protection of a program called Deferred Action on Childhood Arrivals (DACA). In 2012, President Barack Obama issued an executive order that basically replaced DACA legislation which had failed to pass in Congress. President Donald Trump attempted to overturn DACA protections but was rebuffed by the Supreme Court. Now, those living in the USA and protected under DACA laws have the ability to apply for an FHA home loan–something that wasn’t permitted in the past. Effective January 19, 2021, the FHA, “…is permitting individuals classified under the “Deferred Action for Childhood Arrivals” program (DACA) with the U.S. Citizenship & Immigration | more...

January 25, 2021

HUD Announces Extension Of FHA Loan Foreclosure / Eviction Moratorium

By Bruce Reichstein

A press release at the official site for the Department of Housing and Urban Development announces that the Biden Administration has “requested the U.S. Department of Housing and Urban Development and other Federal Agencies” extend the current COVID-related foreclosure and eviction moratorium for single family mortgages insured by the Federal Housing Administration. This request also affects loans guaranteed by the Office of Native American Programs’ Section 184 and 184A loan guarantee programs. At press time, and according to the press release, the moratorium is extended through March 31, 2021. The press release on the HUD official site states that this extension is, “one of the first Administration actions” that addresses the need for “meaningful support” to homeowners struggling with financial difficulty during the pandemic. “As President Biden promised, his new | more...

December 22, 2020

FHA Mortgage Relief Extended Into 2021

By Joe Wallace

Millions of homeowners with FHA mortgages in need of mortgage relief during the coronavirus pandemic are getting an extension on their options to avoid foreclosure. That is thanks to a recent move by the Department of Housing and Urban Development; the agency has announced an extension to coronavirus relief measures intended to help borrowers financially affected by COVID-19. FHA and HUD official sites announced this week that they have approved a two-month extension to the COVID-19 related foreclosure and eviction moratorium. The new expiration date for the moratorium is listed as February 28, 2021. There is now more time for FHA borrowers to request what the FHA calls an “initial COVID-19 forbearance” which must be obtained from the borrower’s mortgage servicer. This forbearance is meant to “defer or reduce” FHA | more...

November 17, 2020

HUD Says November Is Fraud Awareness Month

By Joe Wallace

The Department of Housing and Urban Development is observing the month of November as Fraud Awareness month. The agency’s official site states, “During November Fraud Awareness Month, HUD is highlighting the many resources available to help combat fraud.” What kind of resources are available to borrowers and potential borrowers? One of them is a video titled, “What Does Fraud Mean To You?” The HUD official site also includes links to resources such as a global occupational fraud report. What should consumers beware of and raise the awareness of when it comes to fraud associated with mortgages and refinance loans? There are a variety of critical areas that should be paid attention to–much will depend on what stage of home ownership you are at. Are you a first-time home buyer? A | more...

October 29, 2020

HUD Announces Changes To Exterior-Only Appraisal Guidelines For FHA Purchase Loans

By Bruce Reichstein

When the FHA and HUD began adjusting policies to accommodate social distancing requirements meant to mitigate COVID-19, one of the measures it started was the use of desktop-only and exterior-only appraisals. This meant that an FHA appraiser conducting a home inspection was no longer required (temporarily) to step into the home to perform the appraisal. The appraisal could be accomplished in person from the exterior only (hence the name of the “exterior-only” appraisal) or by using a computer in a desktop-only type of review of the property. These measures were meant to be strictly temporary and had expiration dates when these modifications to FHA policy would expire. But later, the FHA and HUD decided to extend the deadlines in light of the fact that coronavirus emergency did not abate in | more...

The FHA One-Time Close Construction Loan: An Option In 2020

October 23, 2020

FHA Implements New Construction Loan Rule Changes

By Bruce Reichstein

The FHA has announced rule modifications for its new construction loans. On October 22nd, 2020, the FHA and HUD issued a Mortgagee Letter detailing modifications made in 2018 and 2019 which have resulted in a need for further alterations of the rules for New Construction loans. Some of the changes end requirements for “Early Start Letters” and other requirements, others make provisions for “alternative inspections” as we’ll discover below. The FHA/HUD official site states there are also changes to the maximum financing policy for FHA New Construction loans. Effective immediately–lenders can choose to wait on implementing these modified rules until January 4, 2020, but have the option to start using the new rules now if they so choose) the following modifications are being added to HUD 4000.1: Eliminating Early Start | more...

October 21, 2020

FHA and HUD Announce New Automated Loan Processing System

By Joe Wallace

The Federal Housing Administration has announced a new automated underwriting system for use by participating lenders who process FHA Single-Family home loans. The new system allows lenders to electronically submit loan application data for single family forward mortgages directly to tbe FHA and, “receive mortgage insurance eligibility scoring decisions generated from FHA’s Total Mortgage Scorecard. “The launch of FHA’s first direct automated underwriting system is a huge milestone for the over one million borrowers on average who rely on FHA insurance annually,” according to Assistant Secretary for Housing and Federal Housing Commissioner Dana Wade, who was quoted in an FHA press release. Wade adds, “We’re excited to deliver this enhanced automated underwriting capability specifically for FHA-insured lending because it will streamline processes for everyone, including consumers.” This new system has | more...