FHA Mortgage Guide

For what it’s worth, the Treasury Department’s “Blueprint for a Modernized Financial Regulatory Structure” and a related fact sheet are now online. See:

http://www.treas.gov/offices/domestic-finance/regulatory-blueprint/

The following release has just been distributed by HUD
JACKSON TO STEP DOWN AS HUD SECRETARY
WASHINGTON - U.S. Housing and Urban Development Secretary Alphonso Jackson announced today he will be stepping down as the nation’s chief housing officer. Jackson will conclude his government service as the nation’s 13th HUD Secretary on April 18, 2008.
“During my […] read more

For the past few days rumors of a new plan to regulate Wall Street have been referenced in Washington. The way this really works is that the 22-page document can discussed but not fully revealed or published. If the public reaction is good, then the Administration (all Administrations do this) makes a formal announcement and […] read more

As of Saturday morning it’s being widely reported that the Bush Administration is about to launch a new initiative to halt the massive wave of foreclosures being faced nationwide.
“The proposal,” says The Washington Post, ”is aimed at assisting borrowers who owe their banks more than their homes are worth because of plummeting prices, an issue at the heart of […] read more

I read a speech today by Federal Reserve Governor Randall S. Kroszner and it, er, raised a few questions….
“As of January 2008, the most recent month for which data are available, about 24 percent of subprime adjustable-rate mortgages (ARMs) were ninety or more days delinquent, twice the level one year earlier. Roughly 190,000 foreclosures were […] read more

We all know that practically all lenders require a prospective borrower to obtain an appraisal before that lender will lend money. The reason for this is relatively obvious: the lender wants assurances regarding a property’s value in the event that the borrower defaults on the loan and the lender gets stuck with the property. The […] read more

We mentioned the new efforts by HUD to update the disclosure and closing documents used in real estate. I see it as a generally good idea, Barbara offers an alternative view: “I firmly believe RESPA reform is necessary however, adding still more paper to the 60 some odd pages already in use (and unfortunately not […] read more

According to a new study lender efforts to limit foreclosures have actually declined.
Published by the California Reinvestment Coalition, an alliance of 250 nonprofit organizations and public agencies across the state, the study looked at the issue of whether aid for distressed homeowners was increasing or not. Comparing results with a similar report done law August, […] read more

Since August the Federal Reserve has reduced the discount rate and federal funds rate six times, going from 6 percent to 2.25 percent. These rate reductions impact short-term interest levels which helps those with home equity loans, but not long-term rates such as mortgages.
(Think about it — 30-year fixed-rate loans were at 6.13 plus .5 […] read more

My column today on Realty Times raises the idea that perhaps we need a toxic mortgage re-call.
Why not? A mortgage is simply a financial product. When manufacturers ship out products which endanger the public welfare we demand that they be re-called. As the column says:
“The reason millions of people are facing foreclosure today is very […] read more

We all know by now that Bank of America has said that it intends to acquire Countrywide. What you may not have known is that a greater number of larger banks and lenders are acquiring smaller struggling lenders. Many believe that this is a sign that big banks are preparing to make efforts […] read more

It seems since last August when the Fed began lowering short-term rates that every week or two has brought about another crisis in the financial world. The concerns have been about mortgages, but more significantly they have been about mortgage-backed securities and the way they have been packaged, sold, insured and valued.
Is there are any […] read more

On Friday, HUD introduced a new proposal to substantially upgrade and improve the closing and settlement process. The new rules — which are subject to a 60-day comment period and then further revisions — are designed to update the Real Estate Settlement and Procedures Act of 1974.
This is an enormously important effort and reform has […] read more

Rep. Barney Frank (D-MA), chairman of the House Financial Services Committee, is now circulating a proposal entitled the “FHA Housing Stabilization & Homeownership Retention Act.” While just a discussion draft at this stage, the proposal would significantly modify the FHA mortgage program. In particular, the proposal would allow HUD to refinance “at-risk” borrowers, essentially delinquent […] read more

News on the foreclosure front continues to be woeful. Figures from RealtyTrac.com show that not only do foreclosure problems continue, they are significantly worse than a year ago.
Figures from RealtyTrac show that “foreclosure filings — default notices, auction sale notices and bank repossessions — were reported on 223,651 properties nationwide during the month, a 4 […] read more

HUD and the Department of Justice have released new guidelines regarding “reasonable modifications” under the Fair Housing Act.
FHA financing can be used to purchase properties with one to four units providing borrowers live in at least one unit. This means one to three units can be rented, so borrowers who finance with an FHA mortgage […] read more

Today’s headlines largely involve New York Governor Elliot Spitzer, a former fighting prosecutor and the scourge of Wall Street. If the allegations are to be believed, Spitzer was willing to spend $5,000 of his own money for an evening of fun and entertainment with a woman who provided such services.
Other than Mrs. Spitzer, why anyone […] read more

If you want a really good reason not to “modernize” the FHA program with smaller down payments and risk-based insurance premiums, just look at the quarter-to-quarter foreclosure data from the Mortgage Bankers Association:
___ The foreclosure start rate for prime ARMs increased from 0.41 percent to 1.06 percent.
___ Subprime fixed foreclosure starts increased 14 basis points […] read more

The latest HUD stats show that the FHA program is off to the best start since August 2003. At the rate things are going the FHA could receive 1.8 million loan applications this year.
During the first 15 days of February, HUD endorsed 38,598 FHA mortgages. This total includes 15,652 purchase money mortgages, 17,736 refinanced transactions […] read more

On Tuesday, February 12, 2008, the Bush Administration announced the Treasury Department’s “Project Lifeline.” Simply put, “Project Lifeline is a foreclosure prevention program developed by six of this country’s largest home loan servicers (which collectively account for approximately 60% of the nation’s estimated $9 trillion residential receivables market) and merely “blessed” by the Treasure Department. […] read more