2009 brought unprecedented changes to the FHA program as volume soared and its role reached new levels, and the turn of the calendar to 2010 will bring even more changes – but in the other direction. The FHA’s attractive low downpayment requirement is being recalculated by Department of Housing and Urban Development officials, as is the upfront premium, which is currently at 1.75 percent and has a...
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The Obama administration recently tapped Theodore Tozer, a former official at National City Mortgage, to be the next president at Ginnie Mae, where volume is soaring but many of the same problems that plagued the FHA may be increasingly present. Tozer was senior vice president of capital markets at National City from 1989 until the lender was acquired by PNC Bank in November 2009. From 2002 to...
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The Department of Housing and Urban Development removed the 1 percent ceiling on origination fees lenders can charge borrowers on FHA loans as part of the implementation of new Real Estate Settlement Procedures Act rules, which took effect Jan. 1. HUD said it expects lenders will continue to charge “fair and reasonable fees for all origination services,” and the agency will continue to monitor to...
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The National Association of Mortgage Brokers said the proposed FHA rules that would make lenders fully responsible for the actions of their correspondents swings the pendulum of accountability too severely in the wrong direction and may also contradict current housing law. The Department of Housing and Urban Development proposed in November 2009 to increase the net-worth requirements for...
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The Department of Housing and Urban Development notified lenders last month that borrowers are not eligible for an FHA-insured mortgage if they pursued a short sale agreement “to take advantage of declining market conditions” or to purchase another property at a reduced price. HUD said in Mortgagee Letter 2009-52 that borrowers can get FHA financing if they were current on their previous mortgage and...
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The Department of Housing and Urban Development delayed enactment of changes to the FHA appraisal process from the originally scheduled date of Jan. 1 until Feb. 15, an agency spokesman said. Mortgagee Letters 2009-28 and 2009-51 prohibit mortgage brokers and commission-based lender staff from participating in the appraisal process and appraiser selection in FHA Connection. The effective date...
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