Lending of FHA Home Equity Conversion Mortgages set a single-quarter record in early 2009, but declining house prices, prevailing concern about the niche product’s exposure to fraud and predatory practices, and recent talk of eligibility changes have many reverse mortgage lenders expecting the worst. The first quarter of 2009 produced a record... [Includes one chart and onge graph]
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The reverse mortgage market is “a new and potential vulnerable area for fraud perpetrators,” according to Department of Housing and Urban Development Inspector General Ken Donahue, and he said HUD should be concerned about fraudulent practices in its Home Equity Conversion Mortgage Program. Testifying before the House Subcommittee on Oversight and Investigations...
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Separate hearings on Capitol Hill in recent weeks illustrated the substantial concerns that many experts still have about the soundness of the FHA and its ability to keep up with demand with antiquated systems and over-taxed staff. “FHA will be challenged to handle its expanded workload or new programs that require the agency to take on riskier loans than it historically has had in...
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The Obama administration’s implementation of the first-time homebuyer tax credit for FHA borrowers may limit program use, industry sources say. “With regard to the first-time homebuyer tax credit, HUD clearly tried to structure a program that would allow borrowers to access anticipated tax credit proceeds for assistance with downpayment and closing costs; however, the department ran...
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The deluge of lenders and other companies trying to move into the booming FHA arena has created a backlog at the Department of Housing and Urban Development, said industry experts on an audio conference call hosted by the American Bankers Association last week. The obstacles are worth trudging through, though, as the FHA still presents a very profitable opportunity, especially for...
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Details began to emerge this week about how the Department of Housing and Urban Development will implement changes to the FHA program and the HOPE for Homeowners refinance initiative that were included in the Helping Families Save Their Homes Act. The law, signed in May, amends H4H to permit reduction of excessive fee levels, provide greater incentives for mortgage servicers...
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The Department of Housing and Urban Development has urged FHA-approved housing counselors to review recent guidance published by the Federal Trade Commission on how counselors can spot fraud in a reverse mortgage. HUD accounts for 90 percent of the reverse mortgage market through its Home Equity Conversion Mortgage program and is, therefore, concerned about potential...
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FHA will now allow lenders to determine project eligibility, review project documentation and certify National Housing Act compliance for condominium projects effective for all case numbers assigned on or after Oct. 1, the Department of Housing and Urban Development announced last week in Mortgagee Letter 2009-19. The announcement comes as a significant change to HUD...
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More Anti-Fraud Legislation Could Clash with FHA: Congress’ latest stab at curbing fraud in the mortgage industry could... HUD Suspends Three Lenders: The Department of Housing and Urban Development's Mortgagee Review... Nontraditional Credit Pilot Almost Underway: The Department of Housing and Urban Development will soon begin... New Guidance on Energy-Efficient Mortgage Allowances: The 2008 Housing and Economic Recovery Act of 2008 amended...
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