The Obama administration’s proposed 2011 budget for the Department of Housing and Urban Development expects a drop-off in overall FHA volume next year and looks to alter the fees charged to FHA borrowers once again. HUD Secretary Shaun Donovan said the agency is requesting $48.5 billion for fiscal 2011, which would be offset by a projected $6.9 billion from FHA premiums, other credit enhancements and Ginnie...
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The FHA’s newfound focus on disciplining lenders for bad lending practices has grown even stronger, as the Department of Housing and Urban Development announced a clearly defined set of guidelines it will follow in monitoring lender performance and terminating underwriting authority in the FHA program. HUD announced in Mortgagee Letter 2010-03 that it will systematically review all direct...
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The FHA’s hangman dragged another group of lenders to the gallows in recent weeks in a continuing demonstration that it means business. The latest wave of enforcement has seen a number of small players targeted for problem lending, but civil money penalties are often inconsequential. Strategic Mortgage Corp., ProMortgage Inc., Premium Capital Funding LLC (Topdot Mortgage) and Americare Investment Group...
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The FHA endorsed $375.79 million in loans in 2009 and accounted for some 21 percent of the total originations in last year, both record highs in production for the government insurance program. The $375.79 billion in originations, which includes some $31 billion in home equity conversion mortgages, was more than a $100 billion increase over the 2008 total of $253.87 billion, a 48 percent jump. In fact...
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Servicers now have more options in dealing with FHA borrowers who are having financial problems but are not yet in default. The Department of Housing and Urban Development last week said in Mortgagee Letter 2010-04 that servicers can use principal forbearance or Home Affordable Modification Program mods to lower the payments of these borrowers. The Helping Families Save Their Home Act of 2009 expanded...
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The Department of Veterans Affairs saw its mortgage originations jump from $40.58 billion in 2008 to $74.04 billion in 2009, the largest total on record and a year-over-year increase of 82.4 percent, the largest ever. VA originations fell to $16.40 billion in the fourth quarter of 2009, the lowest quarterly total since the first quarter of the year, but that mirrored the overall drop-off in mortgage...
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A pesky program that the Department of Housing and Urban Development has fought to end resurfaced again in Congress with a bid to restore seller-funded downpayment assistance programs. A bill introduced in early 2009 by Rep. Al Green, D-TX, would restart the program, which allows nonprofit groups to donate the 3.5 percent downpayment requirement to low-income borrowers so they can qualify for...
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