Borrowers could use interest-free partial claim funds to repay shortfalls on an FHA mortgage to bring it current and then receive a reduced monthly payment for three to five years.
FHA Commissioner Julia Gordon said FHA plans to “very soon” add a proposal to its drafting table on options that mortgage servicers can use to help borrowers reduce their monthly payments to keep them in their homes.
The volume of FHA and VA originations continued to fall in the first three months of the year, marking the eighth straight quarter-over-quarter decline. (Includes three data charts.)
FHA lending is concentrated on borrowers with loan-to-value ratios greater than 95%, while private MI activity is focused on borrowers with LTV ratios between 85% and 95%, according to an analysis by Inside FHA/VA Lending of agency mortgage-backed securities disclosures.
A revised version of the Homes for Every Local Protector Educator and Responder Act was introduced in Congress last week. The bill would offer downpayment assistance through the FHA loan program for many teachers and first responders.
Under the modified policy, FHA decreased the minimum loan balance threshold at which a mortgagee can submit the assignment request for a home equity conversion mortgage.
The Department of Housing and Urban Development didn’t ensure lenders consistently followed temporary forbearance policy requirements or ensure that indemnification agreement data and related records were complete and accurate, according to the HUD Office of Inspector General.
There were roughly half a million fewer new listings in the first four months of this year than in the first four months of 2019, a year before the pandemic.