Articles Tagged With: HUD

April 19, 2011

New HUD Awareness Campaign Targets Foreclosure Con Artists

FHA borrowers have a new resource to look to in order to become more educated borrowers and avoid foreclosure scams. The Department of Housing and Urban Development has announced a new awareness campaign called Know It. Avoid It. Report It. According to an April 18, 2011 HUD press release, the campaign has launched in Miami, Chicago and Los Angeles and has two missions; one to direct homeowners in financial trouble toward reputable counselors and anti-foreclosure resources, the other to get the help of homeowners to shut down scams and con artists. The HUD press release warns home owners, “Newly deceptive scam artist tactics lure homeowners into misleading agreements. Their tactics include giving the false impression that they are affiliated with the government, charging illegal up-front fees, and executing fraudulent lease-back, | more...

April 18, 2011

FHA Loans: Facts About the Good Faith Estimate

By Joe Wallace

The HUD GFE Good Faith Estimate is paperwork the borrower is given as part of the the FHA loan process. This is a very important document–it explains the nature of the FHA loan including potential interest rate increases, the amount of monthly mortgage payments that could increase as a result, and plenty of other data crucial to making a budget for the new mortgage and other living expenses. The form states, “This GFE gives you an estimate of your settlement charges and loan terms if you are approved for this loan. For more information, see HUD

April 15, 2011

Does the FHA Owe You Money?

By Bruce Reichstein

Does the FHA owe you money? Some are led to believe so based on third-party advertising on television, the Internet, direct mail and via telemarketing calls, but should you believe these advertising efforts? According to the FHA, there’s a very simple way to determine whether the FHA owes you money; “If you had an FHA-insured mortgage, you may be eligible for a refund from HUD/FHA”, FHA.gov says, explaining that some borrowers are owed a partial refund of mortgage insurance premiums under the right circumstances. Only borrowers who have loans originated after September 1, 1983, paid up-front mortgage insurance at closing time and most importantly, did not default on mortgage payments are eligible to get this refund money.

April 15, 2011

FHA Loans: Borrowers with Disabilities and the Fair Housing Act

By Joe Wallace

Who is affected by Fair Housing act laws and related government regulations? The short answer; just about everyone. According to the FHA official site the Department of Justice and the Department of Housing and Urban Development share responsibilities for enforcing the Fair Housing act, and FHA borrowers have plenty of built-in ways to seek resolution in legitimate cases of discrimination. FHA and HUD have extensive resources to record, track, and investigate complaints from FHA borrowers about violations of the act. The Fair Housing act prohibits all types of housing discrimination, including “the refusal to make reasonable accommodations in rules, policies, practices, or services when such accommodations may be necessary to afford a person with a disability the equal opportunity to use and enjoy a dwelling” according to the FHA official | more...

April 14, 2011

FHA Loans and Counseling Agencies

By Joe Wallace

The FHA encourages borrowers preparing to apply for an FHA insured mortgage to get credit counseling and/or first time home buyer counseling where appropriate. An informed borrower is better protected in the real estate marketplace; in some cases the FHA actually requires applicants to get counseling to protect the borrower from making poor decisions about certain kinds of loan products. HECM loans/reverse mortgages are one type of FHA insured mortgage that require counseling in order to get loan approval, due in part to their unique nature compared to other types of loans. To help FHA loan applicants, the agency refers borrowers to approved counseling agencies. In an age where anyone can set up a storefont and pretend to dispense advice about credit, foreclosure avoidance and buying a home, the FHA’s | more...

April 13, 2011

FHA Anti-Discrimination Rules and HUD Fair Housing Grants

By Joe Wallace

As we’ve mentioned elsewhere in this blog, the FHA and HUD have strict anti-discrimination requirements built in to the FHA loan process. The Fair Housing Act prohibits discrimination in any part of the real estate process, and while the borrower is often the first line of defense in terms of reporting and identifying discriminatory housing practices, the FHA anti-discrimination system works. But no system is perfect, and the FHA/HUD continuously look for new ways to strengthen the system in order to provide equal credit and housing access to all applicants. The only thing that should determine whether an applicant can buy a home with an FHA-insured mortgage is whether or not the borrower meets FHA and lender qualifications for the loan. That’s one reason why HUD recently announced a $41million | more...

April 12, 2011

FHA HECM Loans: Questions Seniors Should Ask

By Joe Wallace

The FHA reverse mortgage, also known as a Home Equity Conversion Mortgage or HECM loan for short, can be an important tool for many seniors. The FHA reverse mortgage is a home equity conversion loan that allows qualified borrowers age 62 and older to get a mortgage that has no monthly payments and is only payable when the borrower dies or sells the home. Like other FHA mortgages, FHA HECM loans have occupancy requirements and the borrower can only apply for a Home Equity Conversion Mortgage for the home they use as the primary residence. As with any major financial commitment, the HECM loan is not to be entered into lightly or without serious planning. That’s one reason why the FHA has mandatory counseling required as part of any HECM | more...

April 12, 2011

FHA Announces Settlement with First American Mortgage Trust

By Joe Wallace

On many occasions, we’ve discussed the FHA’s aggressive pro-consumer policies. When a borrower decides to apply for an FHA insured loan, there is plenty of legal protection against discriminatory lending practices. But the FHA doesn’t just look after the borrower’s interests–it also polices the industry where appropriate to insure a level playing field for all involved. The FHA has standards for fair lending, there are laws designed to promote equal access to credit for qualified borrowers, and there are also requirements to protect the FHA’s investment against lenders who are tempted not to exercise due diligence in making sure those borrowers are indeed qualified. A good example of this is the recently announced settlement between the FHA mortgagee review board and First American Mortgage Trust. According to an FHA press | more...

April 11, 2011

FHA Streamline Refinancing Rule Changes In Full Effect This Week

By Bruce Reichstein

In February 2011, the FHA and HUD issued an announcement about changes to the Streamline Refinancing program. Many alterations to the program were made, some effective immediately when the guidance was issued in February, other changes were designed to be implemented no later than 60 days from the date of Mortgagee Letter 2011-11, February 14th. One of the important changes in that letter affects FHA non-credit qualifying streamline refinancing. The FHA and HUD wanted to have greater risk control over the FHA insurance fund; the FHA determined stronger rules were needed to safeguard FHA streamline loans. According to the mortgagee letter, “mortgagees must not use an appraisal to increase the insurable mortgage balance beyond the sum of the outstanding principal balance and the new Up-Front Mortgage Insurance Premium.” The new | more...

April 8, 2011

April Is “Fair Housing Month”

By Joe Wallace

The FHA and HUD are promoting April as Fair Housing Month to raise awareness of borrower’s rights. Fair Housing Month is also meant to make people more aware of the government’s efforts to work toward a discrimination-free environment FHA, VA and conventional loan applicants can buy real estate in. In addition, HUD is running a year-long “Live Free” campaign highlights the message of the Fair Housing Act including rights and responsibilities on both sides of the bargaining table. According to a HUD press release, “The “Live Free” campaign will run throughout the year and include Facebook ads, targeted print ads, digital videos, and podcasts that draw attention to the different types of discrimination HUD and its partner agencies see today, including discrimination against lesbian, gay, bisexual and transgender individuals.” According | more...