Comments on: Is FHA “Reform” In The Works? http://www.fhaloanpros.com/2007/08/is-fha-reform-in-the-works/ The Unofficial Guide to FHA Loans & Mortgages Thu, 21 Aug 2008 22:25:36 +0000 http://wordpress.org/?v=2.0.5 by: Peter G. Miller http://www.fhaloanpros.com/2007/08/is-fha-reform-in-the-works/#comment-128 Fri, 31 Aug 2007 17:39:16 +0000 http://www.fhaloanpros.com/2007/08/is-fha-reform-in-the-works/#comment-128 Greg -- Thanks for your inquiry. There is no final bill at this point. There was a bill passed by the House last year, but nothing from the Senate. The result is that we don't have a final document to check and whatever language is now in place could be changed in the Senate or the conference committee if the Senate passes a bill after Labor Day. Greg –

Thanks for your inquiry.

There is no final bill at this point. There was a bill passed by the House last year, but nothing from the Senate. The result is that we don’t have a final document to check and whatever language is now in place could be changed in the Senate or the conference committee if the Senate passes a bill after Labor Day.

]]> by: greg brown http://www.fhaloanpros.com/2007/08/is-fha-reform-in-the-works/#comment-127 Fri, 31 Aug 2007 17:18:47 +0000 http://www.fhaloanpros.com/2007/08/is-fha-reform-in-the-works/#comment-127 is the bill really going to do away with the HUD net worth requirement for brokers and allow state licensed originators to do fha loans with a 75,000 (bond) in place ?? greg Brow is the bill really going to do away with the HUD net worth requirement for brokers and allow state licensed originators to do fha loans with a 75,000 (bond) in place

??

greg Brow

]]> by: Peter G. Miller http://www.fhaloanpros.com/2007/08/is-fha-reform-in-the-works/#comment-110 Sat, 25 Aug 2007 17:46:47 +0000 http://www.fhaloanpros.com/2007/08/is-fha-reform-in-the-works/#comment-110 Debbie -- You raise a very important point -- the FHA does require that borrowers document income. The problem is that many current borrowers who would like to refinance used "stated income" loan applications where they estimated income. To refinance, they will have to document actual earnings. To be polite, we can expect that in a lot of cases that estimated incomes were, er, overstated.... What this means, unfortunately, is that many of those with toxic loans do not have the income to refinance. Debbie –

You raise a very important point — the FHA does require that borrowers document income.

The problem is that many current borrowers who would like to refinance used “stated income” loan applications where they estimated income. To refinance, they will have to document actual earnings. To be polite, we can expect that in a lot of cases that estimated incomes were, er, overstated….

What this means, unfortunately, is that many of those with toxic loans do not have the income to refinance.

]]> by: Debbie Mimms http://www.fhaloanpros.com/2007/08/is-fha-reform-in-the-works/#comment-109 Sat, 25 Aug 2007 17:10:03 +0000 http://www.fhaloanpros.com/2007/08/is-fha-reform-in-the-works/#comment-109 I believe that the modernization proposed in this bill is necessary. One difference between FHA and the subprime loans that have caused so many foreclosures is that you actually have to prove your income on an FHA loan. There are no "no-income loans" with FHA. I also think that given the current condition of mortgage lending, the lenders out there underwriting these FHA loans will be much more inclined to follow the rules this bill will bring about. I believe that the modernization proposed in this bill is necessary. One difference between FHA and the subprime loans that have caused so many foreclosures is that you actually have to prove your income on an FHA loan. There are no “no-income loans” with FHA. I also think that given the current condition of mortgage lending, the lenders out there underwriting these FHA loans will be much more inclined to follow the rules this bill will bring about.

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